Advertisement

BVB seeks cash to match Bayern

Share this article

Photo: DPA
15:45 CEST+02:00
Borussia Dortmund announced its plan to raise €114.4 million on Thursday in an effort to compete with Bundesliga rival Bayern Munich.

The football club is Germany's only publicly-traded club on the DAX stock market. Borussia Dortmund plans on releasing 24.6 million new shares and trading them at a price of €4.66, below the current stock price.

Sponsors, including Puma, have all indicated that they would acquire the bulk of the new shares to the tune of €82 million, but current shareholders have to be allowed an opportunitz to buy extra shares first. The sale begins August 26.

In 2005, the club entered bankruptcy proceedings. Now it finds itself competing with arguably the Bundesliga's biggest club, Bayern Munich, for new capital.

Munich is 75% owned by its sponsors Adidas, Allianz and Audi.

Much of the new funds is expected to pay off the €40 million in club debts, the club said in a release on Thursday.

"Borussia Dortmund will soon be... debt-free, with a strong current account - but we won't lose touch with our roots," said club CEO Hans-Joachim Watzke.

It's also likely to be used to keep its current star players. Last year, the winning-goal-scorer in July's World Cup finale Mario Götze was traded to Bayern Munich through an exit clause for €37 million.

Story continues below…

The club has pulled off a coup in recent years, rising from bankruptcy to win two championships in 2011 and 2012, as well as making it to the Champions League final in 2013. The successes have made investors keen.

In the last year, BVB made €260.7 million , which was actually €44 million more than 2012's record intake. 

Share this article

Advertisement

From our sponsors

How to get British healthcare no matter where you are

Navigating the health care system in another country can be tough, and even when it all works out, sometimes you just miss the comfort of the system back home. But there's a solution.

Advertisement
Advertisement
Advertisement

Popular articles

Advertisement
Advertisement