German soccer giants Borussia Dortmund have posted a loss of €43.9 million (US$52.2 million) for the 2019/20 financial year, largely due to lost matchday revenue during the coronavirus lockdown.
Dortmund, who finished runners-up in the Bundesliga last season to Bayern Munich, were heavily hit by being unable to host fans at their 81,000-capacity Signal Iduna Park as a result of the Covid-19 pandemic, resulting in a major decrease on the €17.4 million (US$20.7 million) profit they were able to make in 2018/19.
The accounts also revealed that Dortmund’s consolidated earnings before interest, taxes, depreciation and amortisation (Ebitda) amounted to €63 million (US$75.2 million), €53 million (US$63.2 million) less than the club posted last year.
The club’s consolidated revenues also stagnated at €370.2 million (US$441 million), which is almost identical to the €370.3million they posted in 2018/19.
Revenue from TV rights, the club’s main source of income, increased by 1.4 per cent to €169.8 million (US$202 million). Sponsorship revenue was also up to €98 million (US$117 million), a 1.2 per cent year-on-year increase. Even events and catering income from Signal Iduna Park was up 16.1 per cent, generating €36.6 million (US$43.6 million).
Hans-Joachim Watzke, Dortmund's chief executive, blamed the hit to the club's finances on lost ticket sales and matchday revenue, including advertising and hospitality income.
The financial statement confirms that assertion with matchday-related business suffering the most. The club reported revenues of €32.5 million (US$38.8 million) for that sector, marking a 27.2 per cent decrease on last year’s efforts. Perhaps frustratingly, merchandise sales actually increased by 11 per cent to €33.3 million (US$39.7 million), suggesting further growth in that department was missed with the club unable to play their final five home games with anyone in attendance.
"Of course, we are all poking around in the dark a bit as long as there is no spectator income," said Watzke.
The club’s transfer business was also reduced, with a net transfer income of €40.2 million (US$47.9 million), less than half of what Dortmund brought in the season before. Personnel spending also increased by 4.9 per cent, to €215.2 million (US256 million).
The figures above represent Dortmund’s calculated finances in accordance with the International Financial Reporting Standards (IFRSs), but in separate financial statements prepared in accordance with the German Commercial Code (HGB), the club reported a net loss for the year of €49.7 million (US$59.3 million) and confirmed they will not issue a shareholder dividend for the most recent financial year.
However, Watzke said Dortmund have the financial resources to weather the pandemic, benefitting from operating “very conservatively" in past seasons.
"We have succeeded in generating such a high level of assets that we can withstand this pandemic for a very long time," Watzke added.