For Hans-Joachim Watzke, it was a setback in a week that was actually intended for anticipation because of the prospect of the German Championship. "We don't want anyone to come up with solidarity issues in the near future," said a visibly Watzke, who is not only chairman of the management board at BVB, but also the spokesman for the executive committee and chairman of the supervisory board of the German Football League (DFL) at the press conference after the failed vote on investor entry into the Bundesliga.
Jonas Jansen
Business correspondent in Dusseldorf.
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According to Watzke, the big clubs such as FC Bayern and BVB had waived many rights and thus money in favour of the smaller clubs in the plan – in order to make the Bundesliga more attractive. But it was precisely the clubs from the lower half of the league that had rejected the plans, for which Watzke and his presidium colleagues had strongly promoted in recent months and from which the league had hoped for funds in the amount of 2 billion euros. There are not even talks with interested parties such as the financial investor CVC, which is already invested in the Spanish league.
Big clubs have it easier
"Now that this is not desired, the big clubs will certainly also think about how things will go on for them," said Watzke. It is indeed the case that the well-known brands have an easier time negotiating advertising contracts with their platforms, they get more television money and are also more attractive to potential investors on their own.
Of course, Watzke did not forge the investor plan for the Bundesliga because he was overcome by Samaritan feelings. Because the reality in European competition is that the Bundesliga is clearly behind the other leagues in terms of marketing. Smaller clubs might have benefited more from a wider reach or financial support, but of course they are less in financial and sporting competition with clubs such as Manchester City, Real Madrid or Paris Saint Germain.
Share gains significantly
However, Borussia Dortmund's investors were not deterred by the rejection of the investor's plan. Rather, they are inspired by the prospect of the first championship in eleven years. BVB are two points ahead of serial champions Bayern and can win the title with a win at home against Mainz, while the Munich team play away in Cologne. Even though the stock was slightly down on Thursday, the stock has gained about a quarter in value since the beginning of the week. The price moved close to the 6 euros per share certificate, the highest it has been since the end of 2021. The desire to buy was also clearly reflected in the trading volume, with more than seven times as many shares changing hands on the Xetra trading platform as before in the whole year.
Emotionality plays a major role here, as the possible championship has more symbolic than tangible financial effects. Football clubs make big money in the Champions League, where BVB has also been present in recent years – albeit not with particularly exhilarating results. Television money also does not depend on individual annual placements, the contracts with the main sponsors, the telecommunications brand 1&1 and the specialty chemicals company Evonik run until 2025. For the current year, BVB expects sponsorship to generate 150 million euros, the highest turnover in history.
The fans are all back
There is also little room for improvement for BVB when it comes to stadium occupancy: the largest Bundesliga stadium is practically always sold out, and after two years of high losses due to the restrictions of the Corona pandemic, the spectators are back again. This year, BVB wants to return to the sales strength of four or five years ago.
In addition to the risk of sporting success, a special feature of football clubs as an investment is the possibility of generating income through player sales. Dortmund have traditionally been strong, with players like Ousmane Dembélé, Erling Haaland and Christian Pulisic, BVB have earned many times more than they once paid. In view of the ongoing transfer rumours to top star Jude Bellingham, high sales proceeds could be achieved again after this season.
The stock is currently driven by such hopes. There is still a lot of room for improvement in numerical analysis. For 2022, it posted a loss per share of 32 cents, but investors are apparently more optimistic that this will turn around. In the third quarter, sales amounted to EUR 100 million, while consolidated earnings before taxes (EBIT) amounted to EUR 27.4 million, compared with EUR 14.6 million in the same period of the previous year. Only a few analysts are watching BVB, they all recommend buying the stock, Berenberg, for example, sets a price of 6 euros as a target.