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Big gap between one and two in Germany

The latest club accounts to be subjected to forensic security by the Swiss Ramble from Zurich are those of Borussia Dortmund.

The club’s pre-tax loss widened from €47m to €73m, as revenue dropped €35m (9%) from €379m to €345m and profit on player sales fell €25m from €40m to €15m, partly offset by cutting operating expenses by €31m and net interest payable decreasing €2m.

The €73m pre-tax loss is the highest in Germany, though it should be emphasised that these accounts are the first published for the 2020/21 season, so the only ones that include a full year of the pandemic. In 2019/20 eight of the 18 clubs lost more than €20m.

After nine consecutive years of profits, which generated €227m between 2011 and 2019, BVB have now posted losses in each of the last two years, amounting to €120m. The board expects another net loss in 2021/22, albeit much lower (between €12m and €17m)

The €35m revenue fall was due to COVID driven reductions in match operations, down €32m (98%) to €1m, and commercial, down €21m (12%) to €147m. On the other hand, broadcasting rose €17m (10%) to €187m, mainly Champions League money, while other income was up €1m to €10m.

Clearly COVID has had a significant effect on club finances. The Swiss Ramble estimates the revenue loss in 2020/21 to be around €64m (match day €32m, catering & hospitality €29m and UEFA TV rebate €3m). Without this impact, the revenue would have been €408m, a club record.

The profit on player sales fell €25m from €40m to €15m with the only sizeable sale being Toprak to Werder Bremen.   Jadon Sancho’s big money move to Manchester United came after these accounts. Despite the slowdown in 2021, transfer deals have become an important part of the club’s strategy with €358m player trading profit in the 5 years up to 2020, one of the highest in Europe

The revenue gap between BVB and Bayern Munich has narrowed in recent years, but was still €268m in 2020. Put another way, Bayern’s €634m revenue was 73% higher than Dortmund’s €366m (Money League figures), which is a huge difference between the first and second ranked clubs.

They have earned a hefty €294m from European competition in the last five years, much less than Bayern Munich €427m, but a fair way above RB Leipzig €171m, Leverkusen €111m and Mönchengladbach €86m. From 2021/22 the German TV rights will be 70% higher (DAZN, Amazon & ZDF).

The wage bill increased slightly by €1m to €216m, which is the club’s highest ever, despite some salary cuts due to COVID. Wages have grown by almost €100m since €118m in 2015, though the gap to Bayern Munich (€340m) was still a substantial €125m in 2020.


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