German Arms-Maker Rheinmetall Faces Backlash Over Controversial Sponsorship Deal with Borussia Dortmund
ICARO Media Group
In a surprising turn of events, German arms manufacturer Rheinmetall faced criticism for its newly announced sponsorship deal with top football club Borussia Dortmund. The deal, worth millions of euros over three years, raised concerns about the increasing presence of the weapons industry in mainstream society in a country still grappling with the aftermath of World War II.
The Champions League football final on Saturday saw Dortmund face off against Real Madrid, but despite their strong performance, Dortmund lost 2-0. The defeat inevitably sparked discussions about Rheinmetall's sponsorship and its implications. The controversial partnership allows the arms-maker to have marketing messages displayed across Dortmund's stadium, although not the coveted front-of-jersey spot for a corporate logo.
The deal has drawn mixed reactions, with critics pointing out that Dortmund's code of ethics promotes a commitment to a violence-free society. Many Dortmund fans expressed their dismay, stating that strengthening national security should be the responsibility of politics rather than a football club.
Green Economy Minister and German Vice-Chancellor Robert Habeck acknowledged the unusual nature of the deal but argued that it reflects the reality of a "different, more threatening world." He highlighted Rheinmetall's prominence as an arms supplier to Ukraine, where Western munitions are used to defend against Russian President Vladimir Putin's invasion.
However, skepticism remains surrounding the sponsorship agreement. Ursula von der Leyen, the current President of the European Commission and former German defense minister, watched the final match in Madrid with Spanish conservative Popular Party leader Alberto Núñez Feijóo. Her seemingly unrelated presence at the match raises questions about her political networking efforts in Spain to secure a second term atop the EU Commission.
This controversial deal marks Rheinmetall's first step toward normalizing its presence in the arms industry. The company aims to become the world's largest producer of artillery ammunition this year, fueled by record demand from Western allies and EU subsidies to boost production. The millions of euros from the Dortmund deal are a fraction of the revenue Rheinmetall is estimated to earn from the German government's fund to modernize the Bundeswehr and EU subsidies.
For Rheinmetall, the sponsorship is seen as an opportunity to transform its image and gain international recognition. CEO Armin Papperger emphasized the company's intention to be known as both a defense industrial heavyweight and a driver of innovations in civilian markets. Nevertheless, the controversy surrounding the deal highlights the ongoing debate about the role of the weapons industry and its place in society.
This sponsorship agreement is part of a broader trend within Europe's defense industry to gain credibility and expand market access. Executives in the sector are seeking increased public funding for research facilities and manufacturing capacity, as well as greater access to commercial finance markets.
The Rheinmetall-Dortmund partnership also draws parallels with a previous controversial sponsorship deal in German football history. Dortmund's local rival, Schalke 04, was sponsored by Russian energy giant Gazprom for over a decade, until Putin's invasion of Ukraine raised concerns and led to the termination of the partnership.
As the debate intensifies, the Rheinmetall-Dortmund sponsorship deal serves as a reminder of the complex issues surrounding the weapons industry and its growing presence in mainstream society. The coming years will reveal the extent to which such partnerships are accepted or challenged.