BVB seeks cash to match Bayern
Published: 21 Aug 2014 15:45 GMT+02:00
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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.
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.