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Borussia Dortmund continue in profit

The authoritative Swiss Ramble reviews the 2018/19 accounts of Borussia Dortmund. Profit before tax decreased €13m from €35m to €22m (profit after tax €17m), despite revenue rising €60m (19%) from €317m to €377m, as profit on player sales fell €49m from €126m to €77m and total expenses were up €26m, but net interest payable was €3m lower. Although they have reported solid profits, they are a long way below the leading English clubs.

All revenue streams increased, though the largest growth by far was in broadcasting, up €45m (37%) to €167m. In addition, commercial rose €9m (6%) to €157m, match operations €2m (6%) to €45m and other operating income €4m to €8m.

The club has been consistently profitable with 2010 being the last time the club reported a (small) loss. In the 9 years since then, they have accumulated €227m profits, averaging €25m a season. The board expects to post another profit in 2019/20.

They have become increasingly reliant on player sales with average annual profits rising from just €11m in 2010-15 to a hefty €78m in the last 4 years. Without these profits, Dortmund would have been loss-making, but their strategy of developing young players has paid off.

For the first time, broadcasting is the most important revenue stream at the club with 44%, having overtaken commercial 42%. TV has more than doubled since 20% share in 2010, while commercial has fallen from 57%. Match operations has also declined from 22% to 12%.

They have €20m Evonik shirt sponsorship to 2025 (4th highest in Germany), €15m Puma kit supplier to 2020 (in negotiations for €20-30m deal), €9m Opel sleeve sponsor to 2022 & €5.8m Signal Iduna stadium naming rights partner to 2026. That’s pretty good, but far below Bayern.

Bundesliga clubs including #BVB have benefited from the new 4-year TV deal from 2017/18, which shot up 85% over previous period. However, other leagues will see large growth this season, so Premier League and La Liga will extend the difference, while Ligue 1 will narrow the gap.

They have earned a healthy €195m from European competition in the last 5 years, only surpassed in Germany by Bayern €319m, but with a chunky €124m shortfall. However, a fair way above Schalke €118m, Leverkusen €109m, Mönchengladbach €64m, Wolfsburg €61m and RB Leipzig €50m.

They had the highest attendance in Germany of 80,841 (including 55,000 season tickets – capped to ensure adequate supply of tickets on match day), around 6,000 more than Bayern and 20,000 higher than Schalke. The strategy is to keep ticket prices low to maintain atmosphere.

Thewage bill rose €18m (10%) from €187m to €205m, as base salaries and performance-related bonuses both increased. Wages have grown by €87m (74%) since 2015 with wages to turnover ratio worsening from 42% to 54% (still very respectable).

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