Frustrated fans and the management of struggling football clubs are the target group: One day before the German-German Champions League final in London's Wembley Stadium between Borussia Dortmund and FC Bayern Munich, Roland Berger Strategy Consultants shows how, in just a few steps, you can turn a nearly insolvent club like BVB into the international top team that it is today.
In the 2004/2005 season, Borussia Dortmund was on its last legs and experiencing the worst time in its history: With nearly EUR 200 million in the red, BVB was on the brink of bankruptcy that threatened the very existence of the – at the time – almost 100-year-old club. However, since then, the traditional club has become German Bundesliga champion twice in a row and also won the DFB Cup (German knockout football cup competition held annually). And tomorrow, on May 25, Borussia Dortmund even has the chance of beating its arch rival, FC Bayern Munich, in the Champions League final. Roland Berger Strategy Consultants worked with BVB in 2005/2006 and helped the club achieve its current sustainably strong position. The Roland Berger chart entitled "How to become a world class football club" illustrates the steps used to metamorphosize BVB into champion, which can also be applied to other clubs.
Football is serious business
First, the club's financial situation must be in order. This is more complicated than it sounds, as banks and investors also need to be convinced that financial reorganization is worthwhile. All revenue, costs and investments must be critically examined. This includes everything from merchandise revenue, salaries and interest debt, all the way up to insolvency payments.
Second: Football must be viewed as a serious business. Although the game is for many merely a hobby, it's in fact the livelihood for clubs, their members and employees. Bad management policies and personal interests have pushed many traditional clubs into financial crisis, which is then generally also reflected in the club's athletic performance.
After taking a cold and hard look at the facts, it's time to start rebuilding: Instead of eying already successful, but expensive players, clubs need to focus on young and hungry players and invest in them. These young lions are willing to work hard to prove their mettle and at the same time demand much more modest salaries. However, to enable this, clubs must create the proper structures designed to first identify promising talent and then train them according to the club's needs. Furthermore, the clubs must ensure that young talented players feel appreciated and at home – otherwise the clubs run the risk of losing up-and-coming stars.
Once the club has established the proper foundations, the next step is to bring the fans back on board. They are a solid and grateful pillar on the way to success. True fans are faithful to their clubs even during tough times – and they are key for generating much-needed income in the form of membership dues, tickets, TV subscriptions and fan merchandise revenue. However, to ensure this, the club must establish itself as a brand, or reinvent and firmly position itself. This process is also fairly complex. In return for the trust shown by fans, management must also provide more transparency to ensure that fans remain fans for life.
French and German football offers the most suspense – Football much more predictable in Spain and England
The background for this quick guide to creating a successful club is the Roland Berger study entitled: "How exciting are the major European football leagues". Roland Berger football expert Valerius Braun also addresses key questions of the study in a Podcast. One question asked is why the German League is among the most exciting and suspenseful in Europe. The German and French leagues are interesting for viewers especially due to the fact that the clubs tend to be more evenly matched, says Braun. On the other hand, England and Spain, especially due to huge discrepancies in financial resources, don't offer the same intensity: "The top teams here are miles ahead of all the smaller clubs," says Björn Bloching, author of the study and Partner at Roland Berger. Take Spain for example: "The dominance of the two debt-financed giants Real Madrid and FC Barcelona makes any real competition impossible." In contrast, the German Football League is ideally positioned compared to the rest of Europe: The Bundesliga is exciting, with results that aren't always predictable, the clubs are financially relatively well off and football has deep roots in Germany. "In the near future, the Bundesliga could become the biggest and most successful league in Europe," predicts Bloching.
