Abstract
In the last thirty years sport is turning into business and football clubs are developing into large corporations. Sports industry has been becoming not just more exciting but also highly lucrative. The value of professional football sector is estimated to be about 8 billion euros. Even more investors see sports leagues or football clubs as profitable investments. For instance, European Super League can be taken, which could have been more profitable for investors than other competitions and attracted such sponsor as JPMorgan Chase. However, in the near future such project has no support from governments and other clubs and therefore has no future yet. One type of investment in the sports industry is the purchase of shares in sports clubs. Borussia Dortmund is a German football club, one of the most successful clubs in the world, which plays in the Bundesliga, the top tier of the German league system. Dortmund’s shares are listed on the Frankfurt Stock Exchange. Borussia is the only club in Germany and among approximately 25 clubs in the world, including few British and Italian clubs, whose shares are publicly traded. Even more clubs are considering going public to increase its capital. One of the biggest clubs in Belgium, Brugge examined such opportunity, though the club postponed their initial public offering because of the low demand. On the contrary, Ukrainian football club Veres started selling its shares in April 2021 and during the first day have received bids for the purchase of stocks for the amount of over 36 million hryvnas. However, the benefit for the investor might be only the increase of a share price as the club does not intend to pay out dividends. The article analyses the price of a club share for more than 20 years and historical dividends. Borussia’s stock is analysed using futures contracts. It also examines such indicators as return on invested capital (ROIC), weighted average cost of capital (WACC), return on assets (ROA), which are compared with those of Manchester United, Juventus, Lazio and Ajax. A model is being built to predict the stock price during COVID-19 and before the start of the pandemic to compare price fluctuations and model errors.
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