Income from match operations and catering are inextricably linked to the number of spectators permitted at SIGNAL IDUNA PARK. Even though lawmakers removed the capacity restrictions as at the end of the 2021/2022 season, the uncertainties surrounding the COVID-19 pandemic remain – particularly as regards spectator numbers. Given the current infection rates and barring any policy decisions to the contrary, Borussia Dortmund assumes that it will be able to welcome significantly more spectators to SIGNAL IDUNA PARK in the 2022/2023 season than the average of approximately 38,000 spectators who attended home matches this season. Borussia Dortmund therefore expects that ticket and catering income will rise as against the past season. Whether income can return to pre-pandemic levels depends on further developments in the COVID-19 pandemic and the lifting of restrictions on spectator numbers.
Qualifying for the group stage of the UEFA Champions League continues to place Borussia Dortmund in a better financial position. Playing and delivering positive performances in the competition not only generates income, it can also widen the club’s media and brand coverage, which promotes the club’s interaction with existing fans and encourages others to begin following Borussia Dortmund. The club intends to promote these effects with a progressive internationalisation strategy that is regularly tailored to current trends. In light of this, Borussia Dortmund aims to further expand and professionalise its digital presence. Borussia Dortmund thereby responds to social trends and to a large degree leverages the attractiveness of the Borussia Dortmund brand. The growing international awareness of the brand that this gives rise to allows the club to tap foreign markets. This includes the 2021 Virtual Summer Tour, during which Borussia Dortmund made virtual stops in nine countries across three continents between 10 and 18 July 2021 to bring the club even closer to and connect with its international fan communities and partners and give all fans (not just) from the nine participating countries the chance to immerse themselves in the world of Borussia Dortmund.
Since the 2020/2021 season, Borussia Dortmund has had two different kit sponsors. The team wears kits bearing the logo of Evonik Industries AG in all international club competitions, friendlies staged abroad and DFB Cup matches, while 1&1 Telecommunication SE is the kit sponsor for Bundesliga matches. This innovative sponsorship model was developed as part of the internationalisation strategy and promises further revenue potential going forward, since it allows the club and its respective partners to target specific markets.
In the 2022/2023 season, Borussia Dortmund once again marketed its virtual advertising boards. SIGNAL IDUNA PARK’s advertising boards can be digitally overlaid in the broadcast signal to target the respective TV audiences when broadcasting matches abroad. For Borussia Dortmund’s international partners in particular, this is an attractive and increasingly popular way to reach their customers worldwide. Going forward, Borussia Dortmund will therefore continue investing in the expansion of LED advertising boards in and around SIGNAL IDUNA PARK.
Despite the ongoing COVID-19 pandemic and the ensuing economic declines, professional football in Germany has not lost any of its allure. Borussia Dortmund also maintains close and longstanding partnerships with its sponsors. Borussia Dortmund remains just as appealing as ever: despite the COVID-19 pandemic and the war in Ukraine, the club signed various new sponsorship contracts and extended existing partnerships. Of particular note here is the early extension until 30 June 2031 of the club’s partnership with SIGNAL IDUNA Group, which dates back to 1974.
As one financial year draws to a close it is customary for season tickets to go on sale for the next season. Season ticket sales had to be put on hold in the past two years due to the uncertainties surrounding COVID-19, but have now recommenced, and the customary limit of 55,000 season tickets sold was reached.
Despite restrictions on spectator numbers imposed in response to the pandemic, Borussia Dortmund met almost all of its contractual service obligations in the hospitality areas during the 2021/2022 season. Given the current infection rates and barring any policy decisions to the contrary, it assumes that it will likewise be able to do so in the 2022/2023 season.
As such, Borussia Dortmund will also operate in a demanding market and competitive environment in the coming season.
Particular focus will be placed on income from TV marketing in connection with the expected general economic environment.
The media rights currently allocated relate to the 2021/2022 to 2024/2025 seasons. The clubs can expect income averaging EUR 1.1 billion for these four seasons, corresponding to EUR 4.4 billion in total. The distribution of the TV marketing income was resolved in December 2020. Greater stability and more solidarity are the objectives. In light of the decline in income from national media rights, the consolidation being seen on international markets and the significant decrease in revenue at the club level during the COVID-19 pandemic, the objective of the distribution system is primarily to ensure stability during this period of uncertainty, while setting the course for the future and promoting solidarity at the same time. This offers Bundesliga clubs a solid planning basis during the current difficult situation.
DFL Deutsche Fußball Liga GmbH also informed the clubs of the first and second Bundesliga divisions about the specific expected distribution volume for the 2022/2023 season. Borussia Dortmund can expect income of approximately EUR 80,000 thousand. The announced disbursements of the TV funds will allow for a good degree of planning. Nevertheless, a 2022/2023 season without interruptions as well as timely payments by partners in line with their contracts is essential for ensuring the amount and timing of the envisaged distribution payouts.
The COVID-19 pandemic is also affecting international TV marketing from UEFA competitions. The pandemic-related losses for clubs competing in the UEFA Champions League amount to EUR 416.5 million in the 2019/2020 season and EUR 57.3 million in the 2020/2021 season. So as to stretch the adverse effects out over a longer period, it was decided that the EUR 416.5 million would be withheld from distributions in equal shares (of EUR 83.4 million) over five seasons from 2019/2020 to 2023/2024 and the EUR 57.3 million in equal shares (of EUR 14.3 million) over four seasons from 2020/2021 to 2023/2024. In specific terms, UEFA will make the deductions before distributing funds to the clubs. The planned distributions nevertheless remain highly attractive.
Marketing the stadium unlocks further income potential. This includes organising stadium tours and hosting external events in the hospitality areas. Football training courses are also on offer. Given the current infection rates and barring any policy decisions to the contrary, Borussia Dortmund expects that it will be able to offer external events and football courses without any major conditions being imposed, and thus will be able to generate the corresponding income. Nevertheless, opportunities to generate income here are also dictated by political decisions and official stipulations.
Transfer deals are an important part of Borussia Dortmund’s business and, as in previous years, represent a significant source of income. However, in view of the developments in the economic environment, Borussia Dortmund on principle only takes transfer income into limited account in its planning. The transfer policy nevertheless presents significant opportunities to generate substantial income. Consequently, transfer deals are always assessed against the background of the current season. High transfer sums often go hand in hand with a drop in quality within the team, but it cannot be ruled out that value-driven transfers will be concluded contrary to the Company’s sporting interests. Given Borussia Dortmund’s sustained success, its players are increasingly piquing the interest of other top clubs.
The ongoing COVID-19 pandemic and also the war in Ukraine continue to impact events on the transfer market. Based on the past two summer transfer windows, it can be assumed that the economic uncertainty and decline in income experienced by clubs around the world will continue to temporarily reduce the overall transfer fees received for players. Despite the expected potential losses and the uncertainty as the situation continues to unfold, the European leagues remain attractive for talented young players. Besides that, Borussia Dortmund has an excellent team. An active transfer market can be expected all the same in the summer of 2022, with some very lucrative deals in the pipeline. From Borussia Dortmund’s perspective, a notable example is the transfer of the player Erling Haaland to Manchester City in July 2022.
Overall assessment of expected performance
The COVID-19 crisis and also the war in Ukraine continue to overshadow the economic activities of German companies, forcing them to confront the major challenge of having to operate in a highly uncertain environment. The war in Ukraine is causing commodity, energy and food prices to rise, which is fuelling inflation and reducing the purchasing power of consumers. There is a risk of recession. The restrictions imposed on businesses and professional football as a result of the COVID-19 pandemic are viewed as moderate at present, but professional football will nevertheless step in to help combat the COVID-19 pandemic in the event of a spike in infections and/or a rise in the hospitalisation rate. This will shape economic planning for some time to come. Borussia Dortmund will persevere through these still uncertain times thanks to the economically sound foundation it has built up and the specific countermeasures it has taken. There is a high forecasting risk stemming from the strong dependence on political decisions and the further course of the COVID-19 pandemic and the war in Ukraine. Thus, any statements regarding the future performance of the Company remain subject to a high degree of uncertainty.