(BFM Bourse) – The German football club’s shares rose sharply this Wednesday after the team qualified for the Champions League final by eliminating the Parisian club.
In football as in other areas, the misfortune of one person makes the happiness of others. Borussia Dortmund’s qualification for the Champions League final on Tuesday evening at the expense of PSG delighted its supporters. This is probably also the case for its shareholders.
The parent company of the German club, Borussia Dortmund GmbH, is in fact listed on the Frankfurt Stock Exchange and the stock rose 8.8% early this Wednesday afternoon, to 4.27 euros.
According to RMC Sport, qualification for the final would have brought 15.5 million euros to PSG, a windfall which will therefore be received by the German club. A victory in the final would also increase the envelope by a few million additional euros.
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Which is not negligible on a club scale. According to its latest available annual report, Borussia Dortmund had generated revenues of 440 million euros over its entire 2021-2022 financial year, with 110 million euros linked to player transfers, for an operational loss of 35 millions of euros.
Added to this is obviously the increased media spotlight on this club, currently fifth in the German championship, but which has already made good progress in the premier competition of European football. Borussia Dortmund had already reached the final in 2013, beaten by Bayern Munich, and won it in 1997 against Juventus Turin.
Several European groups are listed on the stock exchange, notably Manchester United (in New York) and Juventus in Turin. Ajax Amsterdam had also seen its stock price also increase following its 2019 epic in the Champions League. The Dutch club then reached the semi-final stage, eliminated by the London club Tottenham.
As we wrote in detail in a previous article, investing in a football club on the stock market should be reserved for lovers of the club in question, ready to ignore the volatility of these securities. Because the stock market performance of these clubs depends on various factors not necessarily linked to the financial health of the company, such as its sporting results, its activity on the transfer market or even the state of health of key players. Some listed clubs, notably in Denmark and Turkey, have however diversified their income by managing other activities, such as holiday villages or real estate parks.
Julien Marion – ©2024 BFM Bourse