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There are few clubs in Europe that are as recognisable as Borussia Dortmund, Germany’s second most successful team
Founded in 1909, the black and yellows have won eight domestic league championships and famously one Champions League in 1997. Playing in front of 81,000 passionate fans at the famous Westfalenstadion (officially known as the Signal Iduna Park), Dortmund has the highest average attendance of any football club worldwide. The highlight is the infamous “yellow wall”, which, with a capacity of 25,000, is the largest free-standing grandstand in Europe and produces an atmosphere pretty much unmatched anywhere.
The German giants are primarily owned by Borussia Dortmund GmbH & Co and KGaA – two separate corporate outfits. On April 13, 2021, Forbes valued Borussia Dortmund at $1.9bn, which placed it as the 12th most valuable club in the world. Borussia Dortmund has the ticker name of BVB and trades on the Deutsche Börse (XETRA). This guide will explain how to invest in the club and the risks and rewards of doing so.
The process of buying shares in Borussia Dortmund is fairly straightforward as it is a Public Limited Company (PLC). This means buying shares is fairly straightforward. Simply follow the steps below to become a shareholder.
Despite a rich history of playing attacking football and bringing through some of Europe’s best players, success on the field has not come easy for the Ruhr-based giants in recent years.
Having won its last Bundesliga back in 2012, the team has played second fiddle to its great rivals Bayern Munich for most of the last decade.
However short-term success on the field should not be taken into account when it comes to investing. The key is to think longer-term. When it comes to investing, the share price of listed football clubs should in theory be driven by the same as any other share; future profit outlook, as well as supply and demand.
Dortmund became the first and only German club to be publicly traded on the stock market in the first year of the millennium. After the spectacularly rapid downfall of the proposed European Super League (ESL), which Dortmund never planned to join, club ownership is firmly back in focus many across Europe look at the German model with much envy – in that the fans have a much bigger say in what takes place within the club.
Take a look at Borussia Dortmund’s share price performance over the last three months on the graph below. It’s always important to remember past performance is no indication of future results.
If you’d prefer not to invest directly in Borussia Dortmund, you could invest in some of its sponsors or global partners. Football club sponsors provide funds directly to football clubs to buy new kit and equipment as well as travel to games.
If the coronavirus crisis has taught us anything, it is to expect the unexpected. When it comes to football, the thought of watching an entire season with no fans in the stadiums would have been barely believable two years ago, but it happened.
While the long-term consequences of the Covid shutdown on football clubs is still uncertain, for investors when it comes to taking a stake in the world’s largest sports franchises, it is crucial to try and shut out the noise.
This means results on the field and recent scandals such as the ESL, should not overly influence your decision to buy or sell. This is something all investors should bear in mind when considering buying a share/s in a football club.
Under legendary manager Ottmar Hitzfeld, Dortmund’s most successful era was very much during the 1990’s. Not only did the team, led by Matthias Sammer, win the Bundesliga in 1995 and 1996, but in 1997 it lifted Europe’s biggest prize when they beat Juventus 3-1 in Munich to claim its first and only Champions League trophy.
After a period of decline in the early 2000’s, the club rediscovered its mojo after hiring Jurgen Klopp as manager in 2008. In 2011 and 2012, Klopp guided the team to back to back Bundesliga titles, while in 2013 it lost out in the final of the Champions League to their fiercest rivals Bayern Munich in a 3-1 defeat at Wembley.
While the thought of investing in Borussia Dortmund might seem a fun idea, it must be remembered these are not novelty shares, you are buying real shares in a real company. This can bring both risks – namely you won’t get all your money back – and rewards – namely you might make some money if you wish to sell your investment later.
However, like watching the beautiful game, investing in football franchises offers something unique and valuable for investors. It might not quite match a stoppage time winner to beat Bayern Munich, but for those willing to be patient, the rewards might prove to be just as exciting.
All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
Borussia Dortmund isn’t the only football team you can buy shares in – you can also buy shares in clubs such as Manchester United, Juventus and Celtic amongst others. See the table below for all the current football clubs that you can buy shares in.
Club | Country | League |
---|---|---|
Juventus | Italy | Serie A |
AS Roma | Italy | Serie A |
Manchester United FC | England | Premier League |
Rangers FC | Scotland | Scottish Premiership |
Celtic | Scotland | Scottish Premiership |
Chelsea FC isn’t publicly listed, so you can’t invest directly in the club – however, there are ways that you can invest indirectly.
Looking to buy Manchester United shares? Our guide shows the Manchester United share price and explains how to buy shares in the club (capital at risk).
Follow this simple 5 step guide to buy and sell shares in the Italian football club A.S. Roma
Ever thought about buying shares in Juventus? We talk you through the process with our simple guide.
Looking to buy Rangers shares? Our guide shows the Rangers share price and explains how to buy shares in Rangers.
Find out how to buy shares in Celtic FC with this simple guide.
Hi, can you buy shares in Borussia Dortmund for a family member with a different surname as a birthday gift?
Hi Roy,
Thanks for getting in touch with Finder. I hope all is well with you. :)
I’ve looked into this but there’s no specific instruction on how to buy shares in Borussia Dortmund as a gift to a family member. I’ve read that some have tried, but the process is too complicated that most of them simply gave up.
If you really want to push through this, you might want to get in touch with Borussia Dortmund directly. They should be able to provide more personalised advice.
I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
Have a wonderful day!
Cheers,
Joshua