The appointment of Kahn, who played for Bayern from 1994 until 2008, was approved by Bayern’s board late on Thursday, just hours after club president Uli Hoeness, 67, officially informed the club that he is stepping down in November.
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According to German daily newspaper Bild on Wednesday, Hoeness will not stand for re-election as club president and intends to also quit his role as supervisory board chairman.
They have failed to win any of their previous three Bundesliga matches.
Hoeness, who spent 30 years as Bayern’s sporting director before becoming president in 2009, was initially charged with evading £2.75 million in taxes, but admitted during trial that the sum was much larger