For the first time since 2010, Borussia Dortmund have lost money, and they may have to sell Jadon Sancho to Man Utd to balance their finances.
Dortmund’s after-tax loss amounts to $ 51 million, in its 2019-2020 season’s financial report. After nine consecutive years of reporting profit and accumulating up to 265 million USD, Dortmund first suffered losses.
Covid-19 is only part of the reason why Dortmund suffered a heavy loss. Pandemic Dortmund reduced ticket sales 14 million, down to 38 million, rate 12%. This loss is not even equal to Man Utd’s loss in just three games without audience. Because the ticket price to enter the stadium in the Bundesliga is many times lower than in the UK.
The low ticket sales made the Bundesliga teams less affected by Covid-19. Television royalties and sponsorships increased by $ 3 million and $ 11 million, respectively. Dortmund’s revenue increased slightly by 1.4%, to $ 443 million. Their operating expenses also increased by only 3%, to $ 416 million.
The main reason why Dortmund lost last season was because the profit from player transfers dropped sharply by 52% to 47 million USD. Dortmund’s player depreciation expense also dropped by 15%, to $ 124 million. These two “punches” make Dortmund from a profit of $ 20 million in the 2018-2019 season, to a loss of $ 51 million in the 2019-2020 season. Their profit after tax decreased by up to 353%. They forecast a loss of 82 million to 88 million USD this season, or 20% of sales. In a similar way, Dortmund earned five dollars and lost six dollars.
In the past five years, excluding transfer profits, Dortmund have suffered heavy losses, $ 71 million per year. They are also the only team in the Bundesliga to maintain annual player depreciation costs of more than $ 100 million. This clause shows that Dortmund is not only the team that sells the most, but also buys the most players in the Bundesliga.
Since 2016, Dortmund always sells pillars. From Henrikh Mkhitaryan, Mats Hummels, Ilkay Gundogan (2016), Ousmane Dembele, Pierre-Emerick Aubameyang (2017), Pulisic, Sokratis (2018) to Abdou Diallo, Paco Alcacer, Julian Weigl (2019). In the summer 2020 transfer window, they just sold midfielder Omer Toprak to earn $ 5 million.