Football club scores with insurance contract
MADRID (Bloomberg) — A rare insurance deal gave Borussia Dortmund, Germany's only publicly traded football club, a financial boost even as the team had its worst performance in the Bundesliga championship in seven years.
Dortmund finished seventh in the league, failing to qualify for Europe's elite Champions League.
Net income fell to 5.5 million euros ($6.2 million) from 12 million euros for the year through June 30, the club said in an earnings statement yesterday. Sales rose by 5.9 per cent to 276 million euros.
Dortmund's sales outside regular revenue such as TV rights, ticket sales and advertising more than tripled to 17 million euros mainly as a result of the insurance contract, which protected the team against lost revenue for not reaching the Champions League.
The club was in the third year of the contract with about 12 underwriters led by Catlin Group and XL Group. Dortmund took out the policy in 2012 when the team won its second straight Bundesliga title.