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Borussia Dortmund on the Path to Financial Recovery
Borussia Dortmund, one of Germany's most iconic football clubs, has faced financial challenges due to the COVID-19 pandemic. However, the club has shown resilience and is on the path to recovery.
In the pandemic seasons from 2019–20 to 2021–22, the club recorded net losses of €44 million, €73 million, and €33 million respectively. But the situation improved significantly in the subsequent seasons. The club returned to profitability in 2022–23, with net profits of €11 million, and is projected to achieve €49 million in net profits for the 2023–24 season.
Revenues also rebounded, increasing from a pandemic low of €350 million in 2020–21 to €607 million in 2023–24. Total equity and assets have also improved accordingly.
CEO Hans-Joachim Watzke stated the club's goal of returning to profitability by the 2023–24 season and paying a dividend again. While the precise dividend policy was not detailed, the substantial improvement in net profit and equity suggests potential for dividend payments to shareholders during or following the 2023–24 season.
The club's operating result (EBITDA) also improved, rising from €39 million to €80.8 million. The BVB share has also seen significant growth, gaining 21% over the past four weeks, and was up 2% in a negative market environment on Friday afternoon.
However, Watzke was cautious about making a forecast for the new financial year, citing the uncertainties of the past losses. He also expressed hope that there won't be similar COVID-19 restrictions in the future. During the pandemic, the stadium was only 40% occupied, with 60% of tickets unsold due to restrictions.
These financial improvements align with broader football industry trends where clubs focus on financial recovery and leveraging infrastructure, sponsorship, and diversified revenue channels post-pandemic. Borussia Dortmund's financial management goals, therefore, reflect a commitment to stability and growth, positioning the club for a strong future.
- Borussia Dortmund's financial recovery, as displayed by its return to profitability, has caught the attention of the broader sports and finance industry.
- The football club's focus on financial recovery, along with leveraging infrastructure, sponsorship, and diversified revenue channels, mirrors trends observed across the sports business landscape.
- With Borussia Dortmund's commitment to stability and growth, the club is poised to bolster its position within the global football industry.
