Dortmund insured against Champions League absence

After a disastrous first half of the season Borussia Dortmund won’t be playing in the Champions League next year. Dortmund are currently 9th in the Bundesliga table and would not reach the qualification spots even with a perfect performance for the rest of the season.

The BVB faithful will be hard hit by the absence, having enjoyed Champions League competition for the past four years and even booking a final appearance against league rivals Bayern in the 2012-13 season. Although the missing European nights may sting, the missing prize and TV revenues may not sting as much. Bloomberg Business is reporting that the club holds an insurance policy which “protects against lost revenue from missing the tournament”. The level of coverage is unclear.

Some interesting points about the policy noted by the article:

  • Policy signed in 2012, renewed for a third time before the current season
  • 12 underwriters led by Catlin Group Ltd. and XL Group Plc
  • Underwriters would have had the option to cancel if Klopp or three of Dortmund’s top players had left the team during the year
  • Only three team executives were aware of the insurance policy, a requirement to prevent ‘tanking
  • Dortmund paying close to 30 percent of the amount insured

Hedging activity is increasingly common in the soccer world as clubs and their partners try to control the risk tied to performances on the pitch. Should hedging be allowed in the Premier League? Would it help clubs minimize risk or would it just be a safety net for underperformance?

Dortmund insured against Champions League absence

Jurgen Klopp to leave Borussia Dortmund at end of season

Borussia Dortmund have confirmed that head coach Jürgen Klopp is set to leave the club after the close of the 2014-15 season. Klopp stated in a press conference that he was unsure he was still the right manager for the club and that he needed to make a professional and honest decision to leave. The manager’s offer to cancel his contract is likely to be interpreted by the BVB faithful as a sign of his true respect for the club and genuine disappointment in his own performance.

The departure comes on the back of a difficult season for Dortmund who found themselves struggling near the bottom of the table going into the Bundesliga winter break. In his seven years as manager Klopp led the BVB to two Bundesliga titles, a DFB-Pokal and a Champions League final.

Asked about his future Klopp stated that he was not in contact with any clubs and would “focus 100% on the rest of the season and try hard to win the national cup”.

Jurgen Klopp to leave Borussia Dortmund at end of season

The Month in Soccer Business: February 2012

A monthly compilation of interesting business news related to soccer. February 2012. Continue reading “The Month in Soccer Business: February 2012”

The Month in Soccer Business: February 2012