Borussia Dortmund: Finances under pressure - this is what the situation really looks like!

Borussia Dortmund: Finances under pressure - this is what the situation really looks like!

Borussia Dortmund's financial situation remains tense despite its successful participation in the Champions League. BVB was able to generate important income last season by reaching the Champions League and selling Jamie Gittens to Chelsea for around 60 million euros. Nevertheless, the available transfer budget for the current season is only around 40 million euros, which falls short of the expectations of many fans. [Welt] reports that this is due to the high management costs, which last year amounted to around 120 million euros in basic salaries and 25 million euros in bonuses.

Personnel expenses add up to over 268 million euros, while income from Champions League games last season was around 130 million euros. Sports director Sebastian Kehl emphasizes that this income is necessary to maintain the club's status quo. As [Sky] points out, last year personnel costs were more than twice as high as the income from the Champions League.

High fees and costs in the club

In order to cover the high costs, BVB needs significant player sales every year. In addition, performance-related contracts are awarded, which cushion certain risks in the event of failure, but also drive up costs in the event of Champions League qualification. Players receive a point bonus of around 500,000 euros per win in the league and Champions League, while around 20% of their basic salary is lost if they fail to qualify.

The bonuses collected from FIFA for participation in the quarter-finals of the Club World Cup amounted to 44 million euros, but this was offset by costs of almost 10 million euros. Duties, such as tax payments, significantly reduce actual income. After deducting these costs, the amount the club is left with is around half of its revenue. This also makes it clear why BVB recorded an annual loss of around 35 million euros in transfer business.

Investments and future projects

However, the association continues to invest in future projects, including a medical center that is estimated to cost at least 20 million euros and will be financed by external patients. At the same time, BVB plans to reduce the size of the squad and sign young talents who can be sold for high transfer fees in the future. Players like Jamie Gittens, who may be sold for 50 to 60 million euros, are the focus of such plans. Other sales candidates include Gio Reyna, Julian Brandt and Marcel Sabitzer.

In conclusion, it can be said that Borussia Dortmund is facing a challenging situation despite its successes and the associated financial cuts. The balance between high expenses and the necessary income must continue to be found in order to remain sustainable.