Original-Research: Borussia Dortmund GmbH & Co KGaA (von NuWays AG): BUY
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Original-Research: Borussia Dortmund GmbH & Co KGaA - from NuWays AG
Classification of NuWays AG to Borussia Dortmund GmbH & Co KGaA
Company Name: Borussia Dortmund GmbH & Co KGaA
ISIN: DE0005493092
Reason for the research: Update
Recommendation: BUY
from: 11.03.2024
Target price: 5.50
Target price on sight of: 12 Monaten
Last rating change:
Analyst: Philipp Sennewald
Qualification for FIFA CWC 25 provides earnings upside for BVB
Following RB LeipzigŽs UEFA Champions League (UCL) exit against Real Madrid
last week Borussia Dortmund is now officially qualified for FIFA Club World
Cup 2025.
The recently founded FIFA Club World Cup (CWC), which will be held in a
four-year rhythm, will take place from June to July 2025 in the USA. 32
teams will take part in the competition - selected among the winners of
continental club competitions. FIFA has recently announced the details for
qualification criteria - ensuring UEFA the participation of 12 teams from
the European confederation. Moreover, FIFA has allowed European
participants according to UEFA Champions League coefficient ranking,
whereas participants from other continental confederations will be selected
according to a FIFA ranking. UEFA has guaranteed automatic qualification to
the tournament for the last three UCL Winners plus the upcoming 2024 UCL
champion. The remaining eight teams are selected according to a coefficient
based on the 4- year performance in the UCL. Currently, Borussia is granted
the 6th place in the UEFA ranking (excluding UCL winners automatically
qualified).
While FIFA did not yet release official details on the prize money and
corresponding distribution, several media outlets like Italian "Gazzetta
dello Sport" indicated that total price money will be around EUR 2.5bn, which
would imply an average payment of EUR 78m per participant. However, since we
have no official figures yet, we do not include a possible financial impact
of the CWC qualification in our model.
Yet, in addition to the direct revenue boost, the format looks set to
increase the club's general visibility outside of Germany and especially in
the important US market, where BVB recently opened its first permanent
office in North America. Hence, this should provide upside potential for
the club's merchandise and sponsoring revenues. Moreover, BVB and Bayern
Munich participating in the CWC should also improve the negotiation power
of the German Football League (DFL) regarding the foreign Media
distribution rights of the Bundesliga, which would ultimately benefit BVB's
TV Marketing revenues.
Against this backdrop as well as the strong operating performance in H1, we
reiterate BUY with an unchanged PT of EUR 5.50 based on DCF.
You can download the research here:
http://www.more-ir.de/d/29103.pdf
For additional information visit our website
www.nuways-ag.com/research.
Contact for questions
Die Analyse oder weiterführende Informationen zu dieser können Sie hier downloaden: www.nuways-ag.com/research.
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
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The result of this research does not constitute investment advice
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