Borussia Dortmund Group – Revenue in EUR '000
Borussia Dortmund generated revenue of EUR 370,196 thousand in the 2019/2020 financial year, representing a decrease of EUR 60 thousand or 0.02%. Despite the massive restrictions in connection with the COVID-19 pandemic, income from advertising, TV marketing and merchandising as well as conference, catering and miscellaneous income increased year on year. The only revenue item to decrease was income from match operations, which declined from EUR 44,659 thousand in the previous year to EUR 32,510 thousand in financial year 2019/2020.
The performance of the individual revenue items is described in the following:
Income from match operations
Income from match operations decreased by EUR 12,149 thousand to EUR 32,510 thousand in financial year 2019/2020.
Income from match operations for domestic competitions declined by EUR 7,795 thousand to EUR 20,419 thousand. On 13 March 2020, DFL Deutsche Fußball Liga GmbH announced that due to the growing COVID-19 pandemic, match day 26 would initially be postponed until early April. Shortly thereafter, match operations were suspended entirely. Thanks in part to the hygiene concept defined by the DFL, match days 26 to 34 were then held from mid-May until the end of June, albeit without spectators. Thus, Borussia Dortmund did not generate any income from spectators for the club's five home matches, which included the local derby against FC Schalke 04 and the match against FC Bayern Munich. SIGNAL IDUNA PARK was virtually sold out for the first twelve home matches.
Income from domestic cup competitions declined by EUR 445 thousand to EUR 2,235 thousand. As in the previous year, Borussia Dortmund was eliminated in the third round of the DFB Cup. Unlike in the previous year, only one home match was held at SIGNAL IDUNA PARK.
Despite facing high-calibre opponents in FC Barcelona, Inter Milan and Slavia Prague in the current financial year, Borussia Dortmund successfully navigated the group stage of the UEFA Champions League with three wins, one draw and two losses to once again advance to the round of 16, where it faced Paris Saint-Germain. In the previous season, Borussia Dortmund had also reached the round of 16 of the UEFA Champions League, where it had been paired against Tottenham Hotspur. Borussia Dortmund hosted four home matches in the UEFA Champions League, generating EUR 8,414 thousand in income from standard and hospitality tickets (previous year: EUR 7,480 thousand), representing a year-on-year increase of EUR 934 thousand.
In addition to friendlies, the US tour in July 2019 and the ticket proceeds generated by the club's other teams, Borussia Dortmund generated income of EUR 1,442 thousand in financial year 2019/2020 (previous year: EUR 6,285 thousand).
Income from advertising
In the financial year ended, Borussia Dortmund increased its advertising revenue by 1.23% to EUR 98,005 thousand (previous year: EUR 96,813 thousand), representing a share of 26.47% of total revenue.
In addition to the kit sponsor, Evonik Industries, AG, the equipment supplier, Puma, the holder of the stadium's naming rights, SIGNAL IDUNA, and the sleeve sponsor, Opel Automobile GmbH, Borussia Dortmund's Champion Partners again included nine other companies in financial year 2019/2020.
Whereas the increase in the first half of the 2019/2020 financial year amounted to EUR 4,022 thousand, the increase amounted to just EUR 1,192 thousand for the financial year overall. The COVID-19 pandemic and the five home matches played behind closed doors as a result also had an impact on income from advertising. Many non-TV-related advertising services could not be performed at SIGNAL IDUNA PARK. Furthermore, marquee home matches such as the local derby against FC Schalke 04 and the match against FC Bayern Munich, which are big advertising draws, were held behind closed doors.
The hospitality clients were also unable to utilise all of the services. Marketing for match day packages for the final five home matches was discontinued, as was ticketing.
However, a sharp increase was recorded in the use of virtual advertising boards, which have been used on a regular basis during international live broadcasts of the first and second Bundesliga divisions since the previous financial year. Whereas fans in stadiums and viewers at home in the DACH region see the original adverts as they are presented, the stadium's existing physical advertising boards can be digitally overlaid in the broadcast signal to target different TV audiences when broadcasting matches abroad. In its second year of use, virtual advertising increased by approximately 75.69%.
Furthermore, advertising income includes bonuses for the second-place Bundesliga finish, which directly qualified the team for the group stage of the UEFA Champions League in the 2020/2021 season, for advancing to the round of 16 of the UEFA Champions League in financial year 2019/2020 and for winning the DFL Super Cup at the beginning of the past season.
Income from TV marketing
In financial year 2019/2020, income from TV marketing once again represented the highest share of revenue (45.88%) and increased by EUR 2,487 thousand year on year to EUR 169,836 thousand. Income from both domestic and international TV marketing remained virtually level. TV marketing income from domestic cup competitions rose.
Income from domestic TV marketing amounted to EUR 97,687 thousand, down EUR 423 thousand against the prior-year reporting period. This is also attributable to the outbreak of the COVID-19 pandemic.
The total distribution that DFL Deutsche Fußball Liga GmbH had originally planned would have been approximately 9.97% higher than in the previous year. The funds could not be distributed in full as planned due to the global effects of the COVID-19 pandemic, which impacted the profitability of many companies. In addition, the league's four Champions League participants forewent a portion of the distribution in a show of solidarity. Viewed as a percentage, the share of income from international TV marketing for the Bundesliga declined more sharply.
Income from international TV marketing amounted to EUR 67,420 thousand in the financial year (previous year: EUR 68,073 thousand). The decline of EUR 653 thousand is due to the lower performance bonus, since Borussia Dortmund amassed three wins and one draw in the group stage. Borussia Dortmund had one win more in the previous year. This was offset by the higher ranking of the participating clubs under UEFA's 10-year club coefficient ranking. In financial year 2019/2020, Borussia Dortmund once again advanced to the round of 16 of the UEFA Champions League, where it was eliminated by Paris Saint-Germain in the second-leg of the tie in front of an empty stadium. At the end of the financial year, not all quarter-final spots had been filled for the 2019/2020 UEFA Champions League. The remaining quarter-finalists will be determined from mid-August.
Unlike in the previous year, Borussia Dortmund won the DFL Super Cup, its first competitive match of the current financial year. As in the previous year, Borussia Dortmund was eliminated in the third round of the DFB Cup. Income from domestic cup competitions thus amounted to EUR 4,729 thousand (previous year: EUR 1,162 thousand).
Merchandising
In the past 2019/2020 financial year, Borussia Dortmund increased income from merchandising by 11.01% to EUR 33,292 thousand (previous year: EUR 29,989 thousand). This revenue stream was increased despite the closure of the fan shop in compliance with the statutory provisions put in place to contain the spread of the COVID-19 pandemic. The Company's online shop in Germany recorded the highest revenue growth. However, the increase in revenue was also attributable to the expansion of the sales and distribution network following the opening of two fan shops and the launch of the Company's own international online shop.
Conference, catering and miscellaneous income
Conference, catering and miscellaneous income amounted to EUR 36,553 thousand (previous year: EUR 31,446 thousand) and also included revenue from advance booking fees, rental and lease income, release fees for national team players and fees for players on loan.
Conference and catering income, which comprises income generated by the hospitality areas, public catering services and events, decreased by EUR 3,143 thousand from EUR 16,459 thousand in the previous year to EUR 13,316 thousand. Despite the fact that the hospitality areas were completely sold out for the first twelve home matches at SIGNAL IDUNA PARK, the closure of the hospitality areas for the final five home matches meant that the Company could not match the prior-year figure. Likewise, no income from public catering was generated from mid-March onwards, and the staging of events outside of match operations was officially prohibited.
Advance booking fees and postage amounted to EUR 1,756 thousand in the current financial year, far below the previous year's EUR 4,360 thousand. This is attributable to the temporary discontinuation of season ticket sales at the end of the financial year and the lack of advance booking fees for the final five home matches.
In the reporting period from 1 July 2019 to 30 June 2020, miscellaneous income, which includes the Evonik Football Academy, rental and lease income and BVB TV, increased by EUR 3,935 thousand to EUR 10,876 thousand. This is attributable to the club's participation in this year's DFL Super Cup and the marketing of a four-part documentary series on Borussia Dortmund.
Despite fewer national team matches, release fees for national team players remained virtually level at EUR 2,711 thousand (previous year: EUR 2,750 thousand).
Income from fees for players on loan and training compensation increased sharply by EUR 6,958 thousand as compared to the previous year due primarily to the loans of the players Dženis Burnić, André Schürrle, Jeremy Toljan, Ömer Toprak and Marius Wolf. Felix Passlack, Jeremy Toljan, André Schürrle, Alexander Isak and Shinji Kagawa had been loaned out in the previous year.
Net transfer income
Net transfer income declined by EUR 42,721 thousand to EUR 40,160 thousand.
Transfer proceeds amounted to EUR 116,688 thousand (previous year: EUR 119,268 thousand).
This was attributable to the departure of the players Maximilian Philipp to FC Dynamo Moscow, Abdou Diallo to Paris Saint-Germain, Alexander Isak to Real Sociedad, Julian Weigl to Benfica Lisbon, Paco Alcácer to Villarreal CF, Jacob Bruun Larsen to TSG Hoffenheim, Sebastian Rode to Eintracht Frankfurt and Shinji Kagawa to Real Zaragoza as well as subsequent transfer proceeds stemming from previous transfer deals.
In the previous financial year, the players Christian Pulisic transferred to Chelsea FC, Sokratis Papastathopoulos to Arsenal FC and Andrey Yarmolenko to West Ham United. These transfers also generated subsequent transfer proceeds.
The residual carrying amounts and transfer costs amounted to EUR 76,528 thousand (previous year: EUR 36,387 thousand).
Other operating income
Other operating income improved by EUR 1,449 thousand year on year to EUR 9,195 thousand. In the current financial year this included primarily income from provisions, insurance reimbursements, unclaimed refunds and prior-period income of EUR 5,033 thousand. In the previous year, in addition to compensation payments and insurance reimbursements, this item included reversals of write-downs amounting to EUR 2,377 thousand and prior-period income of EUR 3,650 thousand, attributable primarily to the reversal of provisions.