Why Borussia Dortmund can not sell Jadon Sancho at a discount
Dortmund’s biggest reason they must keep their asking price for Sancho is financial.
Hans-Joachim Watzke is an imposing and uncompromisingly direct figure. The 61-year old is the CEO of Borussia Dortmund, a position he has held since 2006 at the end of the club’s financial crisis.
On August 17th, he provided preliminary details on the club’s financial position at the end of the fiscal year that ended in June. A year, which had been marred by the pandemic that shuttered the gates of the Westfalenstadion for months.
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The news was grim.
The club announced that there had been a sales growth of 6.3% in the first three quarters from the previous period the year before. However, due to the global shutdown of football, sales had collapsed by 25% in the last quarter of the prior year.
Watzke provided the clearest blow reporting that Borussia Dortmund had lost €44 million during the past fiscal year.
Per BVB’s August 17th press release, Die Borussen saw revenue from gaming operations fall from €44.7 million in 2018-19 to €32.5 million in 2019-20. The club also saw the profit from transfer transactions fall from €82.9 million to €40.2 million this fiscal year.
While revenues and profits from matches and transfers went down significantly, the report reveals that personnel expenses and depreciation costs went up by €10.1 million and €13.6 million, respectively.
The losses this past fiscal year may not be a fatal blow for Dortmund, who has managed their resources well over the years, but it is a staggering blow.
In the minds of Watzke and Zorc, Jadon Sancho is their most significant asset, and they need to get as much cash as possible for him in any transfer deal. Like, maybe €120 million.
The Dortmund CEO made it clear on August 13th by stating: “We are Westphalians, and we agreed on the way Michael Zorc communicated the decision on Monday. You can be certain, definitely means for Westphalians definitely. Jadon Sancho will play for Borussia Dortmund in 2020-21. There is no room for interpretation.”
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For Borussia Dortmund, there is also no room for compromise or negotiation for their superstar, Jadon Sancho. Its €120 million or nothing.