BERLIN (AP) — Undaunted after German soccer rejected an outside investment deal, Borussia Dortmund is looking to increase its profits in the United States.
The Bundesliga club will increase its presence in the United States by opening an office in New York, its first on the continent and its third outside of Germany after opening in Shanghai and Singapore.
“It is important to have a long-term presence in these markets, with new employees in place to communicate directly with the locals,” said managing director Carsten Cramer. “Attending Dortmund’s entire American market will not do justice to the issue in the long term.”
Dortmund’s expansion into the United States was planned before the German Football League rejected a proposal to bring in outside investment for a percentage of profits from broadcast rights.
Private equity investor CVC Capital Partners was the latest prospect to acquire a percentage of the next 20 years’ broadcast rights and sponsorship profits in exchange for an upfront payment, but the plan led to widespread fan protests during games and the league finally abandoned the idea on February 21.
Dortmund CEO Hans-Joachim Watzke, who is chairman of the league’s supervisory board, said in a call with reporters this week that German fans are not against expansion and the pursuit of more profits, but they do not trust on investors.
“The Germans are very traditional, perhaps too old-fashioned and ‘investor’ is not the best word in Germany,” admitted Watzke, who defended the terms of the agreement. “It was not a problem, we were clear in the contract with the investor, we had “A clear line that nothing would happen that would affect the fans. The problem is that the fans did not believe us.”
Dortmund has already made four trips to the United States for friendly matches and promotional events. The club has also had its international academy headquarters in Texas since 2006.
Americans Christian Pulisic and Gio Reyna also helped increase the brand in the country. Pulisic currently plays for AC Milan and Reyna is on loan with Nottingham Forest.
“You can be sure she will be back this summer,” Watzke said of Reyna.
Watzke believes there is more scope for expansion in the United States, including establishing a summer tournament with four Bundesliga teams.
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2024-03-01 15:48:50
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