Ronaldo's appeal may be undeniable, yet...
Hear Ye, Hear Ye! Borussia Dortmund (BVB) on a Profit Pursuit
Borussia Dortmund, the famous football club, is on a mission to make its way back in the black books by the 2023/24 season, following some financial turbulence caused by COVID-19. As CEO Hans-Joachim Watzke recently stated, they've got their eyes on more than just a winning streak—they're aiming to dish out dividends once again.
Amidst the pandemic, the stadium was only fractionally filled, with a paltry 40% of seats being occupied, leaving 60% of tickets unsold. Additionally, income from TV marketing took a nosedive. Despite these obstacles, the group managed to bolster its operating result (EBITDA) to a commendable 80.8 million euros, up from 39 million euros, but still reported a net loss of 35.1 million euros, compared to a loss of 72.8 million euros the year prior. The club's revenue, however, saw a modest increase to 351.6 million euros, alongside a meager climb from 334.2 million euros.
It seems Watzke isn't ready to make any rash predictions for the new financial year, especially after three brutal years in the red. But fret not, dear football fans! He remains hopeful that there will be no repeat of the recent restrictions and chaos.
Now, let's nip those wild rumors about world footballer Cristiano Ronaldo joining Dortmund in the bud! While the idea might be as alluring as a sweet Portuguese pastel de nata, Watzke has set the record straight—there's been no contact, and hence no transfer deal in the works.
In a rollercoaster market, the BVB share price rose a modest 2% on a gloomy Friday. Over the past four weeks, it's seen a meteoric rise of 21%.
In case you're scratching your head about Borussia Dortmund's journey through these tumultuous times, it's worth noting that many football clubs found themselves in a pickle during the pandemic due to reduced matchday revenues, dwindling commercial activity, and various other pandemic-related complications. To get themselves back on track, clubs like Dortmund had to employ strategies such as cost control and, in some cases, player salary renegotiations, with an aim to return to profitability in the near future. As for Borussia Dortmund's specific ambitions for profitability and shareholder dividends by the 2023/24 season, they traditionally strive for a balance between sporting success and prudent financial management.
- Borussia Dortmund's CEO, Hans-Joachim Watzke, has expressed ambitions not only for a winning streak but also for the team to revert to distributing dividends by the 2023/24 season.
- In the European football industry, Borussia Dortmund was one of numerous clubs that faced challenges during the COVID-19 pandemic, including decreased revenue from stadium attendance and TV marketing.
- The business strategy employed by Borussia Dortmund to navigate the pandemic's financial difficulties includes cost control measures and, potentially, player salary renegotiations, with an ultimate goal of re-establishing profitability.
- Meanwhile, speculations about world footballer Cristiano Ronaldo joining Borussia Dortmund have been boldly denied by Watzke, reiterating that there's been no contact or transfer deal under consideration.
