Borussia Dortmund

DE: BVB

Market Cap€535m

Last Close €4.85

The group operates Borussia Dortmund, a leading football club, placed third in the Bundesliga in 2020/21, DFB Super Cup winners in 2019/20, and DFB-Pokal winners in 2020/21. The club has qualified for the Champions League in nine of the last 10 seasons.

Investment summary

Borussia Dortmund announced an equity increase in order to repay financial debt and provide financial stability in the event of further losses that may arise from COVID-related restrictions. Estimated gross proceeds are €86.5m from c 18.4m new shares (currently 92m shares in issue) at a price of €4.70, with an initial subscription ratio for existing shareholders of one new share for five existing shares. Any unsubscribed shares will be offered in a private placement and the offer is fully underwritten. Prior to the announcement the shares were trading at c €6.20. The company published its full financial statements on 28 September.

Y/E Jun	Revenue (€m)	EBITDA (€m)	PBT (€m)	EPS (c)	P/E (x)	P/CF (x)
2019A	370.3	116.0	101.5	87.95	5.5	14.8
2020A	370.2	63.0	45.6	46.77	10.4	150.5
2021E	335.2	32.3	16.1	17.50	27.7	101.3
2022E	369.9	80.8	63.9	62.47	7.8	22.5

Industry outlook

Unsustainable spend on wages and transfers is increasingly being penalised by UEFA Financial Fair Play requirements. A ‘break-even requirement’ obliges clubs to spend no more than they generate over a rolling three-year period. Sanctions vary from a warning to a ban from UEFA competition, fines and a cap on wages and squad size.

Last updated on 20/10/2021