• Big course loss after missed championship
• Due to its high volatility, the share is intended more as a portfolio addition
• Most of the shares are in free float
BVB shares collapse by more than 30 percent
After the championship was given away, the Borussia Dortmund share is on a downward slide. After the BVB share had risen by almost 32 percent due to the prospect of the long-awaited championship title after eleven years of Bavarian dominance and recorded its highest level since autumn 2021 at 5.85 euros, the disappointing draw in the decider against Mainz promptly brought disillusionment and the share collapsed at times by 31.5 percent on Whit Monday. The share is characterized by high volatility due to the significant influence on the stock market value through the success of the team. Anyone who owns a share must therefore have strong nerves.
Share value as mixed as club history
In Germany, BVB is one of two listed football clubs. In addition to BVB, the Unterhaching game association is also on the stock exchange. BVB went public 23 years ago, while Unterhaching is still relatively new to the stock exchange. In addition to BVB, there are also other traditional top clubs on the European stock exchanges in their home countries, including Juventus Turin, Ajax Amsterdam and Manchester United.
BVB’s share price is just as mixed as the club’s history. The issue value of the BVB share was originally eleven euros and flushed 130 million euros into the club’s treasury right away. According to the Ruhr Nachrichten, 70 percent of the shares went to institutional investors. However, the original output value did not last long. After BVB became German champion in 2002, a long phase of stagnation followed, accompanied by the threat of insolvency and falling share prices, the low point of which was in 2009, when the share was traded for 80 cents. After Jürgen Klopp’s commitment, things gradually picked up again – in 2012 BVB became German champions again, the share value rose and a dividend was paid to investors for the first time. In 2018, the share then rose to just under 10 euros and thus almost reached its issue value again.
Are football club shares for enthusiasts and speculators?
An expert says that investing in football stocks should be seen more as an addition to the portfolio because of the high volatility of the paper. Because of the great uncertainty about how successful the club will be in the next season, football stocks are used more for speculation than for retirement. “This form of investment is primarily for enthusiasts or speculative investors,” says Dr. Holger Bahr, Head of Economics at DekaBank. While tangible economic key figures such as profits, quarterly figures and the general economic development influence the share value of conventional shares, the share value of football shares depends on other factors that are very difficult to assess even for stock market professionals. Unforeseen events such as injuries to top performers or disagreements between the team and the coach can have a significant impact on the performance of the clubs and thus on the value of the shares.
BVB’s shareholder structure indicates that the majority of the shares are in the hands of fans – according to BVB, 67.42 percent of the shares are in free float. This suggests that many supporters of the club, whose fan culture is known worldwide, are proud owners of the shares and thus also participate financially in the success of their heart club. The next largest shareholder is Supervisory Board member Bernd Geske, who owns 8.24 percent of the shares. The sponsors Evonik Industries (8.19 percent), SIGNAL IDUNA (5.98 percent) and PUMA (5.32 percent) hold almost 20 percent of the shares.
Editorial office finanzen.net
This text is for informational purposes only and does not constitute an investment recommendation. finanzen.net GmbH excludes any claims for recourse.
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