Borussia Dortmund's stocks decrease following their loss in the final match.
The Champions League title would have brought in significant cash for Borussia Dortmund. The loss during the weekend is, therefore, a letdown for investors as well. However, both the team and the stock are doing noticeably better than expected at the end of the season.
The defeat against Real Madrid on the weekend isn't just a disappointment for sports fans. The financial impact is that Borussia Dortmund GmbH & Co. KGaA will now miss out on extra millions in revenue. The stock declined by around eight percent to 3.81 euros at the start of trading.
In the lead-up to the final, the stock had soared in anticipation of these extra millions. With every round in the Champions League, the club continues to generate millions more in revenue: prize money from UEFA, broadcasting rights, and ticket and catering revenues from home games. In April, when the team advanced to the semi-finals, the company boosted its profit estimate for the current year by approximately ten million euros. The stock skyrocketed by more than ten percent. After the triumph over PSG in early May, the stock price climbed even higher. The projected profit was increased to now 40 to 50 million euros.
During this Champions League season, the team has made over 100 million euros in earnings. The main contributor to this sum is success premiums. Winning the final would have brought in an additional 4.5 million euros. While this may seem insignificant compared to existing earnings, these premiums don't carry any extra costs, and so directly affect the bottom line on the balance sheet - or not.
Thanks to the Champions League participation, Borussia Dortmund is in a much better financial position at the end of the season than anticipated a few months ago. This is also evident in the stock price. Despite recent losses, the paper is still well above the 3.40 euro level it had plunged to in the spring.
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The loss in the Champions League final not only impacts Borussia Dortmund's sports reputation but also leads to a decrease in their share prices. With the title, Borussia Dortmund GmbH & Co. KGaA could have enjoyed a substantial boost in revenue, which is now missed due to the defeat.
