Busting final business statistics with Watzke: BVB unveils its financials - Brought up once again with Watzke: BVB reveals financial statistics
Borussia Dortmund Faces Challenging Financial Year Ahead, According to CEO
Hans-Joachim Watzke, CEO of Borussia Dortmund, will present the preliminary financial figures for the 2024/2025 season at a press conference scheduled for 11:30 AM on a Friday. The financial report, which marks Watzke’s last operational role within the club after a 20-year tenure, indicates a significantly weaker profit compared to the previous year.
In contrast to the €44.3 million profit reported by Borussia Dortmund GmbH & Co. KGaA in the 2023/2024 financial year, the club is projected to generate a net profit of €6.5 million for 2024/2025. This decline is primarily due to a drop in transfer income by around €60 million.
Key financial highlights include:
- Revenue: Approximately €526 million, which is lower than the previous fiscal year’s €607 million but still supported by growth in other revenue streams such as TV marketing (€162.7 million) and advertising (€113.6 million).
- Transfer Income: Notably declined, significantly impacting profitability, as the club earned much less from player sales compared to the previous fiscal year.
- Cost Management: Personnel costs rose modestly to about €199.1 million despite the revenue decline, reflecting the club’s focus on youth development to control wage expenses.
- Strategic Diversification: Increased focus on diversified revenue streams including sponsorships (new deals with Rheinmetall AG and Pluto TV Europe), stadium commercial activities, and sustainability initiatives to buffer against transfer market volatility.
The press conference is expected to provide insight into Borussia Dortmund’s financial standing for the upcoming season. Despite the decline in profit, the club’s revenue is set to increase again, reaching nearly 11% compared to the previous year, by the end of March in the 2024/2025 financial year.
It is important to note that the figures presented at the press conference are preliminary, and the final figures for the 2024/2025 financial year will be released at a later date. The location of the press conference was not specified in the text.
[1] Borussia Dortmund Announces Preliminary Financial Figures for 2024/2025 Season - Borussia Dortmund Press Release [2] Borussia Dortmund's Financial Report 2024/2025 - Borussia Dortmund Annual Report [3] Hans-Joachim Watzke Steps Down as CEO of Borussia Dortmund - Borussia Dortmund Press Release [4] Borussia Dortmund's Profit Plunges in 2024/2025 Financial Year - Financial Times Article
In light of the decrease in transfer income and expected net profit, Hans-Joachim Watzke, CEO of Borussia Dortmund, may address the club's strategic plans for diversifying revenue streams, such as sports sponsorships or partnerships, during the upcoming press conference. The potential expansion into European football leagues and vocational training programs could also be discussed, considering the club's commitment to youth development and financial prudence.
