Dortmund post €60m loss but highlight strong core revenues and a high value squad

October 15 – Borussia Dortmund are reporting a 25% decline in revenue for the covid-hit final quarter of the 2019/20 season against the same quarter in 2018/19.

The club said that this wiped out the 6% revenue growth seen by the club over the year to March when the Bundesliga went into lockdown.

Revenue for the year was €370.3 million, roughly the same as for the 2018/19 full year, with consolidated total operating proceeds at €486.9 million.

The club said that after years of paying dividends, “no dividend payment for 2019/2020 fiscal year will be proposed to the Annual General Meeting due to the net loss for the year caused by the Covid-19 crisis.” Overall losses for the year shown in the accounts are €60 million.

However, not all is doom and gloom for the German giant who point to the club’s underlying strength in key revenue lines.

The stadium was operating at pretty much 100% stadium capacity in the 12 home games before lockdown, with 55,000 season tickets sold. There was a strong and growing perimeter advertising market stimulated by the introduction of virtual billboards and an increased Bundesliga international footprint. Merchandise sales were also improved, stimulated by the opening of an international facing online shop.

Broadcast sales make up the largest share of revenues in the 2019/20 financial year at 45.88%.

Looking forward the club said: “In the future, the core business will remain professional football with its classic pillars of revenue: games, TV marketing, advertising, retail, and transfers. These goals serve as the basis for the management of the company.”

The qualification for the Champions league for the fifth consecutive season is pointed out as being important to next year’s revenues, as is the growing international exposure of the Bundesliga via its growing broadcast footprint and improved deals.

The club said that its 34 million social media following will also significantly push its commercial proposition.

As does player transfers. The club pointed to the young average age profile of its first team squad and 23 national team players it currently has in its youth system.

“Borussia Dortmund has a team that is of high quality. This will not remain hidden from the top European clubs, so that there is always the possibility of lucrative transfers,” said the club. “The comparison of book and market value of player assets clearly shows that there is the possibility of lucrative transfers.”

 

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