Borussia Dortmund Annual Report 2019
Borussia Dortmund Q3 Report 2020
Key numbers
Cash reserves 31 Mars 2020 = €18,78m
Cash reserves 31 Mars 2019 = €55,86m
Revolving credit 31 Mars 2020 = €60m
EBIT Q3 = €2.01m
(minus €28m from 2018)
EBIT Q1 - Q3 = €7,39m
Net transfer income Q1 - Q3 = €38,98m
(Q1-Q3 2019 = €77,22m)
Trade Payables 31 Mars 2020 = €98m
(31 Mars 2019 = €60,6m)
Total Trade Payables = €139m
My comments
After reading two annual reports and the latest Q3 2020 report I can easily say that Borussia Dortmund (BD) is a very well managed club with a profitable business plan that make them competitive on highest international level. Buying players cheap and selling with profit is part of their business plan.
But COVID had changed the landscape. In their own words "
they are hit hard by COVID and that will affect their future plans".
Sooner or later BD needs fresh cash, probably from player sales or using their revolving credit. Selling Sancho is a easy way to solve their problems and prepare for future financial losses. Keeping Sancho could benefit them short term but long term it will decrease his value. The million dollar question is when is the optimal date to sell him?
At this moment nobody can pay €120m in one installament. Probably not even in two intallament. From what I can see the maximun that Manchester United can pay in 2020 is in the region of €60 - 80M. Above €80m will come with significant short term risk in todays financial climate. From my perspective a package of €60M/€30m/€20m in three years installament is a very good deal for both clubs. BD get close their valuation and MU can afford the deal. If BD wait another season the value of Sancho can easily drop significant because of COVID, only two years left of the contract and if the player dont perform next season to expectations.
My best guess is that BD will sell Sancho soon rather then later if the total offer is close to €120m. Manchester Unted can probably only buy if they can pay the fee in three sensible installments. But as usual future will tell.