Bayern vs Dortmund Friendship: How Bayern helps Dortmund in bankruptcy?

Bayern vs Dortmund friendship history

Anyone would be shocked at the moment if one said the Club Borussia Dortmund was on the edge of bankruptcy a decade ago, and there was no proper management policy for player selection. There was no chance for young players. Because everyone knows that Borussia Dortmund is famous for its young players’ performance, skill. With lots of star players, they can’t go bankrupt. Now Borussia Dortmund is so strong in the financial and organizational skill that they selected 12th ranked among the worlds’ best football clubs. But once Bayern Munich gave an unconditional loan to all-time rival Borussia Dortmund to save it from bankruptcy.

Let’s find out how Borussia Dortmund return from the edge of bankruptcy? And how the friendship between Bayern Munich and Borussia Dortmund save a club from bankrupt?

How Borussia Dortmund became bankrupt?

In 1997, Borussia Dortmund won their first Champions League with the help of German manager Ottmar Hatfield. They also won two more German league titles and a domestic cup with their magic performance. By defeating the supremacy of Bayern Munich, Borussia Dortmund come out as one of the best clubs in Germany. And since then-unknown young rising players start to gaining popularity and starting to get big deals from clubs.

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Borussia was also happy to raise salaries to their young talents, and at the same time, they also buy expensive players from the transfer market. Borussia buy Players like Evanílson Ferreira, Tomáš Rosický with 65 million, but get the only total of 10 million! For two players, When selling them to other clubs. At the same time, Borussia Dortmund’s investment in Ruhr’s stock market starts profiting. Relying on this, the club authorities also started to invest the significant amount for big players and other activities.

Bayern vs Dortmund Friendship: How Bayern helps Dortmund in bankruptcy?
Dortmund

Year 2002 – The problem started for Borussia Dortmund. The Club faced financial crisis even after winning the league. The leading cause behind this economic crisis is the recession in the local market, which crashed The stock market, and Club began to lose its all investors. Many high-cost players also sold at low prices because they did not play as expected, and that was a significant loss for Borussia Dortmund. Since 1997 the Club’s debt increased at a high rate due to continuous salary increases. Even Club faced difficulty with paying the player’s payment.

According to the rules, if a club cannot pay the players due to its bank loans or financial crisis, and if club players do not agree with it, the governing body may declare the Club as bankrupt. And if governing body declares any clubs as bankrupt, they became disqualified for the professional league, and can only play amateur leagues or 5th division. So, Borussia Dortmund became an exile from the professional league and waited for a robust future. The club president also resigned because of this disaster.

Bayern’s Help to rival Borussia

In 2003, Rival Bayern Munich unexpectedly came forward to save Borussia Dortmund from bankruptcy. Bayern Munich gives a loan of 2 million euros from its own fund. And surprisingly, without any conditions, even they didn’t demand any high interest on that loan. The motive was to help Dortmund to pay the players’ dues so that they could buy some time to avoid bankruptcy and came back strongly to present themselves to investors.

However, a few years ago, Bayern can’t win for opponent Dortmund. There was another great reason behind it, Bayern Munich wanted Borussia Dortmund to survive in the league, so that their famous Clasico duo “Der Klassiker (The Classic)” also known as ‘German Clasico’ could exist because this was the best duo considering the overall league.

Bayern vs Dortmund Friendship: How Bayern helps Dortmund in bankruptcy?

Previously, Bayern Munich gives such loans to two other clubs named ‘FC St. Pauli’ and ‘TSV 1860 Munich’. Most successful German Club did something unusual towards other clubs out of their responsibility. This kind of help is unbelievable for any other country, league. Maybe Bayern’s support was little compared to its total debt, but it helps Dortmund to get some more time to recover their bankruptcy.

Dortmund Grand Meeting

A date also fixed for the grand meeting. Almost 4500 investors, shareholders, bank officials, league officials, tax lawyers, and a lot of members attended that meeting. Former president of borussia dortmund Hans-Joachim Watzke said before everyone that

“I never take such risk before that day. We made it clear to everyone what our situation was and what rules we had broken. Everyone in that meeting got some faith in those truths. “

“Until 2006, debtors tried to manage our Club. Despite a lot of pressures, we did not change our model. And if for some reason the global recession of 2008 was not in 2008, but in 2006, we would have been in the fifth division by now!”

Hans-Joachim Watzke

As the Dortmund’s shares dropped to 80 percent, the players also agreed to waive their salaries and help the Club in this situation. The club owners also make a managerial model that shows how the Club would run in the future. They tried to bring all rising young players on the primary team from their youth team to maintain an effective cost-cutting policy. The Club gradually changed its situation and back on track.

Jürgen Klopp and New club structure

Borussia Dortmund somehow avoided bankruptcy, but they were not out of danger. Because League authorities were strict about club performance. The club management sold all their Older and higher paid players and picked up many young players from their youth team. A special scouting team also recruited to confirm strong and powerful young players from the young team.

This scout team was really successful for the next 10 years. They picked up many youngstar, who became superstar in Europe at present. However, Borussia struggles until 2006-2007 to keep their spot on the German league. Borussia Dortmund finished 13th in the table in 2006. And then Jürgen Klopp, an extraordinary coach brought in Club from (1. FSV Mainz 05) soccer club.

Klopp managed a team like FSV Mainz from the second division, and Mainz successfully participates in Bundesliga for three years in a row.

Klopp said that,

“After coming to Dortmund, It was such a big club, they had a big stadium. I thought they would give me lots of money to buy new players. But when I saw the budget, I thought, Mainz was not worse than this! But the scouting team was really impressive. It was challenging for me to play top league with 19 to 20 years old players”

Jürgen Klopp
Bayern vs Dortmund Friendship: How Bayern helps Dortmund in bankruptcy?

Borussia Dortmund Success with youngstars

Borussia Dortmund finished at 6th and 5th position in the next two seasons under Klopp. In this meantime, players like Nuri Şahin, Robert Lewandowski, and Łukasz Piszczek became renowned under Dortmund. With the help of those star players performance club overcome the tough time. Later, Borussia won two Bundesliga titles in a row. Also, they won many titles, including the domestic cup.

In 2011 Borussia Dortmund participate in the Champions League final; at that time, the Club also won the Bundesliga league title for the 7th times. In the following year, the total transfer market price for 23 players in Dortmund was only 35 million, and the average age of players was only 22. Since 2005, Borussia never bought any players with excessive prices. Dortmund scouting team finds the best young talents for them so they could play for the Borussia main team. And Club can sell them to other big teams when they become famous.

Players like Lewandowski, Şahin, Kagawa, Mats Hummels and Piszczek cost a total of 31 million euros! When they join the Club. But, in the 2016-17 financial year, Borussia Dortmund announced a profit of 334.5 million euros as they sold all those star players.

In 2005, borussia’s had a total of 198 million euros in debt. Ten years later, the Club had 350 million euros in profit. The Club keeps its proposed model till now, which introduced in 2003. In this meantime, a lot of change came into football, and the transfer market gets more prominent. But Dortmund didn’t make any change in their principles. Still, they have the best scouting team in Europe.

For their strict rules and skilled scouting team, they can get high-performance players for less cost. For example, Jadon Sancho and Erling Håland hired by Dortmund for less than 20 million euros. Now Borussia Dortmund is a role model for all football clubs, and their success brings them at the top of the global rankings. Borussia gives their best with their young stars before Coronavirus (COVID 19) pandemic stops the league.

Borussia Dortmund is an idol for many clubs today, inspiring for many personal lives too. However, the friendship between Bayern Munich and Borussia Dortmund is the main reason behind this success of Borussia.

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