Borussia Dortmund 2017/18 accounts cover a season when they finished fourth in the Bundesliga and were eliminated from the Champions League in the group stage before dropping down to the Europa League where they were reached the last 16. Some thoughts in the following thread #BVB
#BVB profit before tax increased from €9m to €32m (profit after tax €28m). Revenue (Dortmund’s definition) rose €130m to record high of €536m including €223m player sales. Profit from this activity was up €69m to €115m, mainly Dembelé to Barcelona & Aubameyang to Arsenal 
Excluding player sales, #BVB revenue fell €16m (5%) from €333m to €317m with all streams down: commercial €10m (6%) to €149m, broadcasting €4m (3%) to €122m, match operations €2m (4%) to €42m and other operating income €0.4m (8%) to €4m.
#BVB wages increased €9m (5%) to €187m, while player amortisation (including impairment) was up €27m (53%) to €79m and net interest payable rose €3m to €4m. On the other hand, other expenses were cut by €7m (6%) to €119m.
#BVB have reported profits for 8 consecutive seasons, accumulating €202m in this period, which represents a spectacular turnaround, as the club had losses in 5 of the previous 6 years, including €55m in 2005 and €23m the year after. They expect to post another profit in 2019.
#BVB have become increasingly reliant on player sales with average annual profits rising from just €10m between 2009 and 2015 to a hefty €75m in the last 3 years. Indeed, excluding the €115m profit from this activity in 2018, Dortmund would have reported a loss of €83m.
To reinforce this point #BVB EBITDA (Earnings Before Interest, Tax, Depreciation & Amortisation), which can be considered as cash operating profit, has fallen from €54m in 2015 to just €12m. However, including player sales this has increased to a record €127m.
#BVB ongoing revenue has grown by €32m (11%) in the last 2 years from €285m to €317m, driven by broadcasting, up €40m (48%). However, both match operations (€4m) and commercial (€3m) have decreased in this period.
Commercial remains the most important revenue stream at #BVB with 47% of total revenue, but has fallen from 56% in 2009. Match operations has also declined from 21% to 13%. In contrast, broadcasting has almost doubled from 21% to 39%.
The revenue gap between #BVB €333m and Bayern Munich €588m narrowed in 2017 following Dortmund’s return to the Champions League, but it still stood at a hefty €255m. Following their revenue decrease in 2018, it’s likely to widen again once Bayern publish their accounts.
#BVB dropped one place to 12th in the Deloitte Money League, based on 2016/17 results, overtaken by Tottenham Hotspur. However, the gap to the next highest German club Schalke 04 (€230m) is more than €100m.
#BVB commercial income decreased by €10m (6%) to €149m. Merchandising fell €10m (25%) to €29m, while conferencing/catering down €7m (21%) to €25m. However, advertising up €7m (8%) to €94m. In 2017 Dortmund had 9th highest revenue in Europe, but €200m less than Bayern.
All #BVB main sponsorship deals are long-term: stadium naming rights partner Signal Iduna to 2026, shirt sponsor Evonik to 2025 (4th highest in Germany at €20m) & kit supplier Puma 2012 to 2020. They are also shareholders in the club: Evonik 14.78%, Signal Iduna 5.43% & Puma 5%.
In 2017/18 #BVB broadcasting income fell €3m to €122m. Bundesliga TV revenue surged €22m (33%) to €88m, but poor performance in the cups meant decreases in Europe €19m (38%) to €32m and DFB-Pokal €6m (70%) to €3m. €126m in previous season was only 17th in Money League.
#BVB Bundesliga TV revenue in 2017/18 was estimated to be €87m by Kicker magazine, only behind Bayern Munich €96m. Worth noting that RB Leipzig only received €29m, as they have only recently been promoted to Bundesliga 1.
#BVB Bundesliga TV revenue growth was due to new 4-year deal from 2017/18 (up 85%). Distributed using 4 criteria: 5-year league performance ranking (70%); 20-year ranking for both divisions (5%); playing time of Germany U23s (2%); and 5-year ranking for both divisions (23%).
Assuming that the German TV pool was unchanged in 2017/18, #BVB earned around €30m from the Champions League and Europa League, €23m less than the previous season. Based on similar estimates, other German clubs: Bayern €69m, RB Leipzig €34m and Hoffenheim €10m.
Apart from poor performance in the Champions League (no wins in group), #BVB revenue was also adversely impacted by only finishing 3rd in the Bundesliga in 2016/17, which reduced their distribution from the first half of the TV pool.
Nevertheless, #BVB have still earned €166m from European competition in last 5 years, only surpassed in Germany by Bayern Munich €283m, but ahead of Bayer Leverkusen €123m, Schalke €80m, Borussia Mönchengladbach €64m, Wolfsburg €61m and RB Leipzig €40m.
Champions League revenue will rise by 54% in 2018/19. There is also a new UEFA coefficient payment (based on performances over 10 years), where #BVB has the 13th highest ranking of clubs competing this season, guaranteeing them €22m. Bayern ranked 3rd (worth €33m).
#BVB match operations revenue fell €2m (4%) to €42m, as they staged 2 fewer games in the German cup. In 2016/17 Dortmund had the 10th highest revenue in the Money League, which was pretty good, but still €39m lower than Bayern Munich.
However, #BVB had highest attendance in the Bundesliga of 79,496 (including 55,000 season ticket holders – capped to ensure adequate supply of tickets on match day), around 4,000 more than Bayern Munich & 23,000 higher than Schalke. Have been highest in Germany for last 20 years.
#BVB wage bill rose €9m (5%) from €178m to €187m in 2017/8, as higher base salaries more than offset lower performance-related bonuses. Wages have grown €69m (58%) since 2015 with wages to turnover ratio worsening from 42% to 59% (still very respectable).
Despite the growth, the #BVB €187m wage bill is still €78m lower than Bayern Munich’s 2016/17 figure of €265m. Although not as much as the €120m gap in 2016, this still represents a sizeable competitive disadvantage.
This point is even more relevant in Europe, where #BVB had the 11th highest wage bill of the Money League clubs in 2016/17. Their €178m was only about half of Real Madrid €377m & Barcelona €340m, but interestingly the same as Europa League winners Atletico Madrid.
The other #BVB staff cost, player amortisation, has shot up from only €8m in 2012 to €59m in 2018, reflecting investment in the playing squad. The 2018 results also included €20m player impairment (write-downs of certain player values). For context Bayern was €62m in 2017.
Although #BVB had average annual net transfer sales of €35m over last 3 seasons, this is down to incredible average sales of €137m, which masks high average gross purchases of €102m. Transfer activity was previously much more pedestrian: 2009-16 purchases €27m, sales €22m.
As a result, #BVB have the highest net sales (€106m) in the Bundesliga over the last 3 seasons. In the same period, RB Leipzig and Wolfsburg have had net spend of €80m and €59m respectively. 2018/19 sales include Sokratis to Arsenal and Yarmolenko to West Ham.
However, it’s a different story in gross spend with #BVB €306m being over €100m more than Bayern Munich €197m, followed by Wolfsburg €193m and RB Leipzig €177m. 2018/19 purchases included Abdou Diallo, Thomas Delaney and Axel Witsel.
#BVB have done incredibly well to eliminate all financial debt with the exception of €9m finance leases, while increasing cash balances to €59m. In 2006 gross debt was as high as €196m, but Dortmund now have net funds of €51m.
#BVB had to commit 9.1% of its revenue to interest payable in 2008, but this has now been slashed to only 1.4% (just 0.5% in 2017), mainly for expenses from finance leases.
In 2018 #BVB generated €164m from operations (including player sales, now considered to be core business), spending €124m on players and €7m on capex. Also spent €12m on debt/lease repayments, €4m interest payments, €6m dividends & €2m tax. Increased cash balance by €10m.
In last 4 years #BVB have had €505m available cash: €364m operations plus €141m share issue. Most spent on players €323m with €35m on capital expenditure. Around €97m on financing: €60m debt repayments, €23m interest payments and €14m dividends. Cash balance up €42m.
The club expects #BVB “financial performance to remain strong in the future”, but it is worth noting how much the 2017/18 positive result benefited from very high profits on player sales. Recurring revenue actually fell, while wages and player amortisation continued to grow.
