Werder CEO: “Covid and relegation were disastrous, but they sharpened our focus”

• Klaus Filbry likens Werder Bremen’s €80 million income decline during Covid-19 and relegation to a near-death experience. However, the club emerged stronger, partly by breaking down internal silos.
• " Asking managing director of football, a sports director and a head of scouting and recruitment to participate in a two-day meeting is probably the last thing they want to do. But we insist on this four times a year," says CEO Klaus Filbry.
• Why it matters: Once a major force in German football, Werder Bremen found themselves relegated to the 2. Bundesliga, burdened by excessive debt and revenue pressures.
• The perspective: In 2021, Werder Bremen resembled many European clubs: effectively two separate entities - the commercial and sporting departments. The club has since successfully integrated these units.

By Kasper Kronenberg , co-founder Off The Pitch

It is often said in business that significant change requires a shake-up at the top of an organisation. While this is usually true, SV Werder Bremen GmbH & Co KG aA stands out as a rare example of achieving fundamental transformation without major changes at the executive level.

The white-and-green North German club has made substantial improvements across most areas of its operations. However, this progress required an honest reckoning with years of poor execution. Once the management team reached a consensus that change was essential, they began a critical review of almost every aspect of their operations.

“Our willingness to fundamentally change things was probably due to the near to death experience we were facing. It gave us two options, you either quit or you fix it,” says CEO Klaus Filbry in an exclusive interview with Off The Pitch.

“We all wanted to fix things, because when you are relegated on the back of a period with Covid, then things are critical. So, we allowed ourselves to be very critical, open and drastic in how we addressed the problems. And quite frankly without Covid and the relegation, we would have developed a new strategy and maybe – or even most likely - failed again in our execution of that plan.”

Klaus Filbry, Werder Bremen’s top executive since 2010, reflects with brutal honesty on the hectic and emotional months following the club's relegation to the 2. Bundesliga in the summer of 2021.

“We were all under immense pressure to fix things and determined to do better than we had in the past, because this club means so much to us. Since then, we have had what I would call three intense years. We’ve turned over every stone to increase our chances of success,” says Filbry, a former Adidas executive who spent 16 years with the sportswear giant before joining Werder Bremen.

To grasp the pressure faced by the Werder Bremen hierarchy in 2021, it is essential to consider the broader context. Most European clubs were grappling with declining revenues due to empty stadiums during the Covid-19 pandemic.?

Simultaneously, the transfer market nearly collapsed, leaving cash-strapped clubs unable to sell premium assets to ease liquidity pressures.

Werder Bremen’s financial situation was deteriorating, with an unsustainable imbalance between expenses and cash inflows. Matters worsened on 23 May 2021, when a 2-4 home defeat to M?nchengladbach on the final day of the season sealed their fate. Despite the loss, survival was still possible until FC K?ln scored a late winner, confirming Werder’s relegation.

“I’ve described it before as the day we suddenly found ourselves in intensive care, fighting for our life,” says Filbry.

Covid-19 eliminated fallback option

The harsh reality facing Klaus Filbry and his colleagues was a revenue decline of €80 million. The club had already absorbed a €40 million hit due to empty stadiums during Covid-19, but a further €40 million loss following relegation to the 2. Bundesliga pushed Werder Bremen into a critical situation.

The management team had to act urgently to secure funding for the upcoming season. They obtained a €20 million loan from the Bremer Aufbau-Bank and raised an additional €18 million on the bond market. This provided short-term relief, allowing the club to tackle the more complex challenge: identifying the root causes of their predicament while developing and executing a new strategic plan.

Filbry reflects that two key issues were identified. First, the club lacked financial discipline, allowing costs to escalate faster than recurring revenues. Under normal circumstances, clubs can turn to the transfer market, selling top players to cover deficits.?

However, Covid-19 eliminated this fallback option. Filbry emphasises that the core issue wasn’t the pandemic but the absence of a financially sustainable business model that would avoid reliance on player sales.

Beyond financial challenges, Werder Bremen’s most significant issue was their lack of operational excellence. The club struggled to implement agreed-upon strategies effectively.

“Having a well-researched plan on paper is important, but the critical factor is ensuring that the plan achieves its intended outcomes. We identified that our organisation lacked the skills and discipline needed to execute effectively,” says Filbry.

Like tens of thousands of other corporations globally they started to work with the “Objectives and Key Results”-methotology (OKR), which can be an an effective goal-setting and leadership tool for communicating what you want to accomplish. And not least what milestones you’ll need to meet in order to accomplish it.

Filbry says that they had spoken to colleagues at other big German clubs, who tried to do the same, but it really didn’t work for them.

“These clubs told us that the biggest problem was the fact that the sporting departments never really got involved,” he says.

“Basically they were not willing to join, because they said that they didn’t have the time to take part in lengthy meetings where everyone get aligned on the common goals, the goals for each department and person, and what each and everyone should do to accomplish this. But we were lucky that our sporting director Frank Baumann was keen to try new things, so we managed to get people from alle departments of the club involved.”

Creating transparency

Klaus Filbry explains that the OKR (Objectives and Key Results) framework involves regular meetings to review previously agreed goals. This approach fosters discipline within the organisation, as it ensures accountability - everyone is focused on delivering on their promises.?

At the same time, it promotes alignment by breaking down departmental silos and creating transparency around the tasks critical to a football club’s success.

“Asking managing director of football, a sports director and a head of scouting and recruitment to participate in a two-day meeting is probably the last thing they want to do. But we hold these meetings four times a year because the core of our business must be involved in key decisions,” says Filbry.

He notes that the sporting department must be prepared to face tough questions at these meetings, where their decisions and processes are scrutinised.

“It’s essential that we examine all aspects of the club, from our U/17, U/19, and U/23 teams to how we support these talents during a critical period in their lives. Do we have the right structures and people in place to help them succeed? These meetings are not about everyone being an expert in talent development but about sharpening focus and ensuring that every department understands they are part of a larger organisation,” Filbry explains.

Question: Where is the line between what should be discussed in these meetings and what departments should handle independently?

“Cross-functional alignment is key. Everyone needs to understand each other’s priorities and roles in achieving shared goals. Departments must work together and support each other, which won’t happen without transparency and an appreciation for the importance of each other’s work.”

Outstripping supply

Since Werder Bremen’s relegation, the club has achieved notable progress. They earned immediate promotion back to the Bundesliga and currently sit 10th in the league, just two points from 5th place. Financial stability has also improved.?

In February 2022, they sold an 18 per cent stake to local investors for €38 million, and this season has seen record shirt sales of over 100,000.

Demand for season tickets is now outstripping supply, sponsorship income is growing, and the club had the financial strength to make key player acquisitions last summer while extending contracts with several key players.

“I think we’re in a good place. The dream of experiencing European nights at our stadium again feels realistic, though we don’t want to rush things,” says Filbry.

The challenge now is to sustain and build on this momentum. Filbry attributes much of Werder’s success to fostering alignment among all stakeholders.

“I have to be honest: part of the job is managing egos behind the scenes. The stakeholder landscape in Germany—and at Werder Bremen—is incredibly complex. With fragmented ownership, it’s crucial to maintain transparency and alignment within the supervisory board. This has prevented constant changes in coaching positions and executive leadership, providing the stability and continuity that has been fundamental to our rebuild,” says Filbry.

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