Borussia Dortmund Suspends Dividend Payments

Dividend Freeze Amidst Financial Struggles

Borussia Dortmund, the German football club, has announced that it will be suspending dividend payments to shareholders for the foreseeable future. This decision comes as the club faces financial challenges amid the ongoing COVID-19 pandemic.

Impact on Shareholders

The suspension of dividend payments is a significant setback for shareholders who have come to rely on the club's regular dividends. In the past 10 years, Borussia Dortmund has paid out 6 dividends to its shareholders.

Financial Situation

The club's financial situation has been impacted by the pandemic, which has led to reduced matchday revenue and other income streams. Additionally, Borussia Dortmund has made significant investments in its squad in recent years, which has added to its financial burden.

Outlook

The club's management has stated that the dividend suspension is a temporary measure and that it expects to resume dividend payments once its financial situation improves. However, no specific timeline has been given for when this might occur.

Share Price

The announcement of the dividend suspension has had a negative impact on the club's share price. On the day of the announcement, the share price fell by 578 euros, closing at 414 euros.