Borussia Dortmund is set to lose out on €40M ($46M) in revenue with its chances of qualifying for next year’s UEFA Champions League are close to zero. Borussia Dortmund, which reached the Champions League final in '13, currently sits in 16th place in the Bundesliga, 25 points behind Champions League playoff spot No. 4. Borussia Dortmund CEO Hans-Joachim Watzke confirmed this bleak outlook at SpoBiS in Dusseldorf, Germany on Tuesday. He added that the loss in profit would be distinctively smaller. “After taking everything into account, [missing out on the Champions League] should result in a loss in profit of around €15 million ($17M),” Watzke said. Dortmund, which will face Serie A side Juventus in this year’s Champions League round of 16, would also take a financial hit should it get knocked out of the competition by the Italian side. Watzke: “[It] would have a financial impact after reaching the quarterfinals last year.”
DELAYED IMPACT: While the team’s current on-field struggles could impact its finances further down the road, they will not affect its upcoming quarterly numbers. “We certainly will be in the black, and when you take a look at our revenue number in a couple weeks -- it’s going to be pretty good,” Watzke said. After announcing a 17.5% increase in revenue during the first quarter in comparison to the same period last year, Watzke said, this growth trajectory will continue in quarter No. 2. However, he warned that Dortmund’s second quarter report will include a higher figure on the expenditure side. “By paying off our debts ahead of time, we had to pay several prepayment penalties, which will impact the second quarter,” Watzke said. “[These] amounted to a total of €5-€6 million ($6M-$7M).” Even business sectors that are usually affected by poor performances on the pitch are strong, he said. “In term of merchandise sales and sponsorships, we don’t see any impact. And in ticketing you would see it for yourself,” Watzke said. “When I lie on the couch, turn on the TV and watch Sky on Sundays, I see a lot of empty seats in a number of stadiums, which worries me a little. You don’t see them in our stadium and therefore there is no impact to our balance sheet.”
APPEALING ABROAD: Watzke, who celebrated his 10-year anniversary as CEO this week, sees int’l TV rights as one of the key areas in terms of growth. He said the better product the Bundesliga, the more TV channels are willing to pay for it. Watzke pointed to the stellar performances of Dortmund and in particular Bayern Munich on the int’l scene over the past several years that have boosted the league’s appeal. Being successful on the European level also results in higher income from TV, as the Bundesliga’s int’l TV revenue is distributed to the clubs based on their UEFA ranking. In addition, Dortmund is currently regaining control of its catering rights, effective July 1. Watzke: “This will not result in more revenue, but it gives us some sort of security and a seven-figure profit increase.”
