Shares in this article
• BVB shares fall more than 50 percent in the Corona crisis
• Positive start to the new season – first fans in the stadium
• The pre-crisis level of the BVB share is still far away
The corona crisis caused a severe slump in some sectors of the economy. The pandemic also left its mark on what is probably the most popular sport in this country, football. The German soccer Bundesliga was put on a forced break in the spring, after which ghost games continued. In the meantime, the first spectators have returned to some stadiums for the new season. But fans are not allowed to go back to the stadium everywhere and the normality that prevailed before COVID-19 is still a long way off.
One of the clubs that have usually been able to count on the support of their fans at home games is Borussia Dortmund. At the first game of the new season against Borussia Mönchengladbach last weekend, almost 10,000 fans were able to be there live – is things going uphill again from now on?
BVB is in the red
In the 2019/2020 financial year, which ended in June, Borussia Dortmund posted a loss of 44 million euros – while in 2019 a profit of around 17.4 million euros was reported. In order to boost liquidity, shareholders did not receive a dividend. Thomas Treß, managing director responsible for finances, explained that the equity at BVB had shrunk by almost 50 million to 305 million euros.
When the balance sheet was presented in August, managing director Hans-Joachim Watzke stated that BVB was financially armed and that the pandemic could continue “for a very, very long time”. “Here we benefit from the fact that we have managed conservatively over the past decade,” reports the dpa Watzke news agency.
Development of the BVB share in the corona crisis
At the beginning of the new calendar year 2020, the BVB share was quoted at around EUR 8.70. After a good start to the season, the stock was able to gain, after defeats there were price setbacks. The market received preliminary half-yearly figures on February 21st – BVB shares climbed to a high of EUR 9.50 since the beginning of the year.
But then the spreading corona virus, while there was a severe slump in the overall market, also dragged the BVB titles down. After the DFL decided on March 16 to suspend gaming operations due to the corona pandemic and BVB withdrew its profit forecast on the same day, BVB shares fell to below 5 euros on the same day – the day after they fell to their current 52-week low at 4.34 euros.
In less than four weeks, BVB shares fell by more than 50 percent. The shares have since recovered somewhat and are currently trading at EUR 5.70 (as of the closing price on September 21, 2020). In order to reach their pre-crisis level of around 9 euros at times, the shares would have to increase from their current level by a little more than 50 percent.
It now remains to be seen how the corona situation will develop and whether the number of spectators admitted to the stadiums will gradually increase again or whether the number of spectators may be reduced again due to the increasing number of cases in Germany. Because if the 2020/2021 season should take place without fans in the stadiums, the loss will be significantly higher than in 2019/2020, according to Watzke. But at least: the ball is rolling again, which means that the TV broadcasts take place again and the TV money that is so important for the clubs flows.
Finanzen.net editorial team
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