FC Bayern Munich: The Best Run Club in Football - [Business Breakdowns, EP. 110]

This is Dom Cooke and today we’re breaking down Bayern Munich. Bayern is Germany’s most successful football club and one of the world’s biggest. Most importantly, it makes a great case for being the best-run club in football. It has an enterprise value close to €3 billion, no debt, has been profitable for 3 decades, and is majority owned by fans. Plus, it has a trophy cabinet to rival any club worldwide. Bayern has won a record 32 national Bundesliga titles, including the last ten in a row, and has won the prestigious Champions League, six times. To break down the business behind the club, I’m joined by Marie Schulte-Bockum, a football journalist and Munich resident. Please enjoy this Business Breakdown of FC Bayern Munich. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- This episode is brought to you by Tegus. Tegus is the modern research platform for leading investors, and provider of Canalyst. Tired of calculating fully-diluted shares outstanding? Access every publicly-reported datapoint and industry-specific KPI through their database of over 4,000 driveable global models handbuilt by a team of sector-focused analysts, 25+ industry comp sheets, and Excel add-ins that let you use their industry-leading data in your own spreadsheets. Tegus’ models automatically update each quarter, including hard to calculate KPIs like stock-based compensation and organic growth rates, empowering investors to bypass the friction of sourcing, building and updating models. Make efficiency your competitive advantage and take back your time today. As a listener, you can trial Canalyst by Tegus for free by visiting tegus.co/patrick. ----- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here. Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss | @ReustleMatt | @domcooke Show Notes (00:02:38) - (First question) - Overview of Bayern Munich (00:05:37) - How Bayern’s been able to maintain such consistent success writ large (00:12:39) - What the 50+1 rule is and its implications for German football clubs (00:17:24) - Major differences between the Bundesliga and other European leagues (00:22:30) - What it takes to run a high performance team like Bayern Munich (00:28:39) - Driving profits and the three major revenue buckets for Bayern Munich (00:35:48) - Germany’s influence being the biggest economy in the European Union (00:38:40) - How important European football is to every major club and broadcasting revenue (00:43:20) - Whether Bayern are buyers, builders, or borrowers in regards to their team (00:51:15) - Overview of their expenses and the size of their wage bill (00:53:43) - What financial fair play is and how it protects football clubs (00:57:27) - How they’ve managed to cultivate one of the biggest fanbases in the world (01:02:14) - Potential risks for Bayern Munich’s continued success (01:04:18) - League-level discussions around sharing revenue equitably (01:05:34) - Lessons for builders and investors when studying Bayern Munich’s story