BVB Finances - "We make money the old fashioned way. We EARN it."

Discussion in 'Borussia Dortmund' started by Berchtesgaden, Aug 28, 2013.

  1. The Jitty Slitter

    The Jitty Slitter Moderator
    Staff Member

    Bayern München
    Germany
    Jul 23, 2004
    Karo Viertel
    Club:
    FC Sankt Pauli
    Nat'l Team:
    Germany
    However looking at experience to date in England & Germany there seems to be an argument that there is only a market position for one mega brand.
     
  2. The Jitty Slitter

    The Jitty Slitter Moderator
    Staff Member

    Bayern München
    Germany
    Jul 23, 2004
    Karo Viertel
    Club:
    FC Sankt Pauli
    Nat'l Team:
    Germany
    Even in England Utd hold a revenue edge of more than 100m p/a over clubs like Arsenal and Chelsea

    And that is despite Chelsea being relatively successful.

    There is a lot of premium in being the one key brand in the space - for the teams that follow, commercial revenue is largely growing only due to the growth in global exposure - a tide that raises all boats.
     
  3. bvbSlash

    bvbSlash Member+

    Jan 7, 2014
    Berlin
    Club:
    Borussia Dortmund
    Nat'l Team:
    Argentina
    In some good news. Our share price trend is on the rise again. Squad is worth €340M and market cap is €408M. If you happen to compare us to other top clubs just remember that if somebody were to purchase our club hypothetically they'd pay a lot more than market cap.
     
  4. bvbSlash

    bvbSlash Member+

    Jan 7, 2014
    Berlin
    Club:
    Borussia Dortmund
    Nat'l Team:
    Argentina
    We have extended our contract with Coca Cola until 2020. No idea how much the new deal pays is but it's definitely an upgrade.

    Coca Cola actually approached BVB to extend so I presume we got a.....really sweet deal.
     
  5. bvbSlash

    bvbSlash Member+

    Jan 7, 2014
    Berlin
    Club:
    Borussia Dortmund
    Nat'l Team:
    Argentina
    According to Kicker our top 3 shirt sales are Reus, PE and Gotze in that order.
     
  6. bvbSlash

    bvbSlash Member+

    Jan 7, 2014
    Berlin
    Club:
    Borussia Dortmund
    Nat'l Team:
    Argentina
    Wooohooo Swiss Ramble finally wrote a piece about us....4 years later, I was expecting there to be one 2 years ago because prior to that he had composed an article back in 2010. About time I'd say. Our finances are just as, if not more interesting than Arsenal or any of the other PL clubs, am I right?

    Here is a summary so you don't have to read the voluminous article.

    - Excluding transfer fees, revenue rose €4 million (1.5%) from €281 million to €285 million (with transfers it is €376). The insurance policy taken out from last year was quite significant.
    - Wage bill increased by €22 million (19%) from €118 million to €140 million, while player amortisation (including impairment) rose €6 million from €33 million to €39 million. That's a 75% increase in the last 4 years. Outpacing revenue which was 25%. Wage to revenue ratio is 49%.


    [​IMG] [​IMG]

    - Yet we have accumulated €161 million of pre-tax profits in the last 6 years.

    [​IMG]

    - Do note that transfers usually help with this. Incoming transfers are amortized not listed in its entirety as an expense. The graph below demonstrates that.


    [​IMG]

    -
    Investments analysts Edison expects us to make about 311M next year and 344M the following year from the recurring revenue streams i.e. commercial, broadcast, matchday and other operating income. (Non-recurring is transfers)

    - We are the only club who can keep up with Bayern despite making almost 200M less than them. This graph below shows that other than S04 none of the clubs have a remote shot at ever keeping pace. BMG, VfL and Leverkusen aren't even in the picture.

    [​IMG]

    - For me this is perhaps the most important measure i.e. our comparison with the 10th placed club in the money league which has consistently been Juventus who made 58M more than us last year. We can only reach 10th place if we consistently perform better than them in the CL and the new TV deal.

    [​IMG]

    You can read the rest of the article which dives into details for each revenue stream. Some of the numbers are pretty depressing e.g. we make 15M a season from Puma. Barca make 150M from Nike. And finally there is an explanation of our current debt situation.
     
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  7. MatthausSammer

    MatthausSammer Moderator
    Staff Member

    Dec 9, 2012
    Canada
    Club:
    Borussia Dortmund
    Nat'l Team:
    Germany
    Intriguing... I thought we were closer to Juve than we actually are, unfortunately. Overall, it sounds like we're in a solid position to grow sustainably, but we're still pretty far away from of being able compete with the real top brands in football
     
  8. Dave46

    Dave46 Member+

    Nov 30, 2013
    Las Vegas
    Club:
    Borussia Dortmund
    Nat'l Team:
    Armenia
    15 and 2 for Reus. Kinda sad, we should be making 3-4 times more at least.
     
  9. bvbSlash

    bvbSlash Member+

    Jan 7, 2014
    Berlin
    Club:
    Borussia Dortmund
    Nat'l Team:
    Argentina
    Brand Finance did a big research on how each revenue stream can grow.

    Matchday: This is the one that clubs can control the most but have the least impact on total revenue. It doesn't help that our club do not want to milk the fanbase but I completely understand the sentiment.
    Commercial: Clubs have a lot of impact but heavily dependent on long-term performance (basically regular CL football which we do not currently boast)
    Broadcast: Least control and heavily dependent on league performance in the CL. With Bayern cheating and swindling the league, this has severely hampered our ability to compete with the EPL. Thanks to BVB we are soon going to be boasting a broadcast deal that is 3rd to Liga and PL.
    Transfers: Not something we should be counting on and if anything it should be low to suggest we are no longer a selling club.
    Other Income: E.g. DFB paying us for using our players. Minuscule and irrelevant. A couple of million euros at best.

    So the bottom line is to continue play exciting football and consolidate 2nd in the league while reaching the the 1/4 finals every year in the CL. If Bayern flounder then that year we have to hit them hard i.e. win the league and at least reach the CL final.
     
  10. podrinje

    podrinje Member+

    Oct 10, 2013
    Bay Area!
    Club:
    Alemannia Aachen
    Nat'l Team:
    Bosnia-Herzegovina
    BVB should focus on buying out Puma's stake in the club and, pending good European results, go out and strike a better sponsorship deal with a kit manufacturer be it Puma again or someone else. It's pathetic to see them receiving peanuts compared to other similar clubs.
     
  11. sanky

    sanky Member

    Dec 6, 2015
    Club:
    Borussia Dortmund
    we should renegotiate the deal or just end it like the way cfc did with adidas same with enonik
     
  12. Berchtesgaden

    Berchtesgaden Member+

    May 18, 2011
    Milwaukee
    Club:
    Columbus Crew
    Good find slash

    Love the graph of our debts disappearing.
     
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  13. MatthausSammer

    MatthausSammer Moderator
    Staff Member

    Dec 9, 2012
    Canada
    Club:
    Borussia Dortmund
    Nat'l Team:
    Germany
    Good to see you Berch. I'm surprised you didn't get to it first. :D;)
     
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  14. bvbSlash

    bvbSlash Member+

    Jan 7, 2014
    Berlin
    Club:
    Borussia Dortmund
    Nat'l Team:
    Argentina
  15. Berchtesgaden

    Berchtesgaden Member+

    May 18, 2011
    Milwaukee
    Club:
    Columbus Crew
    Lol. I was on vacation in Germany. First time in Dortmund. Loved the German soccer museum. Highly recommended.
     
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  16. nekkibasara

    nekkibasara Member+

    Apr 12, 2004
    Fairfax, Virginia
    Club:
    FC Bayern München
    Nat'l Team:
    Germany
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  17. bvbSlash

    bvbSlash Member+

    Jan 7, 2014
    Berlin
    Club:
    Borussia Dortmund
    Nat'l Team:
    Argentina
    You mean the culture of football?
     
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  18. nekkibasara

    nekkibasara Member+

    Apr 12, 2004
    Fairfax, Virginia
    Club:
    FC Bayern München
    Nat'l Team:
    Germany
    Exactly
     
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  19. bvbSlash

    bvbSlash Member+

    Jan 7, 2014
    Berlin
    Club:
    Borussia Dortmund
    Nat'l Team:
    Argentina
    They need to understand enough to monetize it. Just like hockey. And once they do they just need to keep its head above the water.....just like hockey.
     
  20. nekkibasara

    nekkibasara Member+

    Apr 12, 2004
    Fairfax, Virginia
    Club:
    FC Bayern München
    Nat'l Team:
    Germany
    I think that's basically what's going on. It wont be long before football is ahead of hockey.
     
  21. Berchtesgaden

    Berchtesgaden Member+

    May 18, 2011
    Milwaukee
    Club:
    Columbus Crew
    Preliminary quarterly results are out. Full report available on the 11th

    Borussia Dortmund GmbH & Co. KGaA / Key word(s): Quarter Results/Preliminary Results

    07.11.2016 12:00

    Disclosure of an inside information according to Article 17 MAR, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement.


    Borussia Dortmund increased Group revenues by EUR 36.8 m. (i.e. 40.9%) to EUR 126.8 m. (previous year EUR 90.0 m.) in the first quarter (July 1st until September 30th, 2016) of the fiscal year 2016/2017. Even without transfers group revenues increased by EUR 8.4 m. (i.e. 11.5%) to EUR 81.6 m. (previous year EUR 73.2 m.) especially given to the participation in the UEFA Champions League.

    EBITDA of the Borussia Dortmund Group amounted EUR 40.1 m. (previous first quarter EUR 13.9 m.). Result from operating activities (EBIT) amounted EUR 24.1 m. (previous year EUR -5.2 m.).

    According to International Financial Reporting Standards (IFRS) the Borussia Dortmund Group earnings amounted EUR 20.7 m. in the first quarter (previous year EUR -5.6 m.)

    In the individual quarterly financial statement Borussia Dortmund GmbH & Co. KGaA recorded Earnings before interest and taxes (EBIT) in an amount of EUR 21.6 m. in the first quarter of the fiscal year 2016/2017 (previous year EUR -8.1 m.). Earnings before taxes (EBT) in the first quarter amounted EUR 23.0 m. (previous year EUR -5.8 m.) and the quarterly result in the respective report period amounted EUR 20.0 m. (previous year EUR -5.9 m.).

    The complete quarterly financial report Q 1 2016/2017 can be downloaded as of November 11th, 2016 from www.aktie.bvb.de, rubric "publications".

    Dortmund, 7. November 2016

    Borussia Dortmund GmbH & Co. KGaA Borussia Dortmund Geschäftsführungs-GmbH

    07.11.2016 The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de


    Language: English
    Company: Borussia Dortmund GmbH & Co. KGaA
    Rheinlanddamm 207 - 209
    44139 Dortmund
    Germany
    Internet: www.borussia-aktie.de

    End of Announcement DGAP News-Service
     
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  22. Bazi

    Bazi Member+

    Jan 15, 2009
    Wuerzburg (Germany)
    Club:
    FC Bayern München
    Nat'l Team:
    Germany
    That Champions League prize money is such a difference maker compared to last year and the meager earnings in the Europa League.
     
  23. bvbSlash

    bvbSlash Member+

    Jan 7, 2014
    Berlin
    Club:
    Borussia Dortmund
    Nat'l Team:
    Argentina
    For clubs from the top 5 leagues it does but for those outside of the top 5, it just helps to consolidate their position in the domestic competition.
     
  24. Berchtesgaden

    Berchtesgaden Member+

    May 18, 2011
    Milwaukee
    Club:
    Columbus Crew
    It is. Great to have it back.
     
  25. bvbSlash

    bvbSlash Member+

    Jan 7, 2014
    Berlin
    Club:
    Borussia Dortmund
    Nat'l Team:
    Argentina
    The DFL has announced plans to distribute the 4.64B TV money which will take effect next season.

    The distribution of domestic TV money will be based on a new four-pillar system. Seventy percent of the overall income will be based on a five-year ranking for each league, with the last season weighted with the factor five down to one for the oldest season to go into the ranking.

    The top team in Bundesliga will get 5.8 percent of the overall income and the last 2.9 percent. The top team in Bundesliga 2 will receive 1.69 percent and the bottom club 0.75 percent.

    The second biggest pillar called "competition" offers a parachute payment for relegated clubs. It is also based on a five-year ranking and makes up 23 percent of the money distributed overall.


    With 93 percent of all domestic money already distributed, the other two pillars can be neglected. The third pillar called "sporting sustainability" makes up for five percent and again includes all 36 clubs. The ranking is based on the overall performances in the last 20 seasons, with all seasons having the same value.

    The fourth, and final, pillar honours the academy work of each clubs. It makes for only two percent of the total, and will be distributed on a ranking based on the playing time for under-23 players trained in the association. Foreign players need to be registered within the association before their 18th birthday.

    The DFL also announced a new three pillar distribution system for the growing foreign TV market. The 18 clubs of the second tier will divide a total of €5m among them next term, with the figure rising to €8m in the last season for the new deal.


    Twenty-five percent of the rest will be equally distributed among the 18 Bundesliga clubs, and a further 50 percent will be based on all 36 clubs performances in the European competitions over the last five years. The final 25 percent are distributed based on a 10-year ranking, based on participations in the all European competitions.
     
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