For the 2019/20 financial year, Borussia Dortmund anticipate a loss of 45 million Euros. This is mainly owing to the coronavirus pandemic, which saw a shortfall in earnings in the primary income areas for the club.
Football was put to a pause in the month of March, which extended to a period of two months in Germany. As a result of the COVID-19 pandemic, when play resumed in Germany, spectators were not allowed into stadiums for the remainder of the season.
This meant that in the 5 home games Dortmund has played at the Signal Iduna Park, since the middle of May, the club has lost almost 15 million Euros. Apart from ticket sales, two subsidiaries of Borussia Dortmund have not made money either. The travels agency “besttravel Dortmund GmbH” lost money as they failed to plan any travels back and forth to the stadium. Also, the event management company, “BVB Event & Catering GmbH”, hasn’t conducted any pre/post-match events for the club.
According to Kicker, a German Sports media outlet, the club will face further losses through a decline in tv revenue, merchandising sales, reductions/refunds in advertising, and hospitality revenue.
It will be interesting to see if the club sells Jadon Sancho, a transfer target of most European giants, at a price lower than his transfer value, given that they expect such high losses. Although their CEO claimed that there will be no “coronavirus discount” for Jadon Sancho, the club may be forced to do so in light of their fall in earnings.
