This is Dom Cooke and today we’re breaking down Bayern Munich. Bayern 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.
We cover the people and philosophy behind Bayern’s consistent success, the value of broadcast revenue and a prudent transfer policy, and how staying true to its roots has helped Bayern cultivate a global fan base.
Our guest is Marie Schulte-Bockum, a football journalist and Munich resident. Show Notes
(00:00:00) – Introduction
(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