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

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Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse.

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The issuer is solely responsible for the content of this research.

The result of this research does not constitute investment advice

or an invitation to conclude certain stock exchange transactions.

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