Borussia Dortmund. A model of sustainability.





At the top of the Bundesliga right now lies Borussia Dortmund, you may not be surprised considering they are the current champions, yet when looking at the last ten years, this is a remarkable achievement.

In the mid 90’s Dortmund enjoyed their greatest success, winning the Bundesliga in ’95 and ’96 and the Champions League in 1997. Dortmund, with European player of the year Mattias Sammer, Andreas Moller and Karl Heinz Riedle overcame the talent of a Juventus side blessed with Deschamps, Zidane, Vieri and Del Piero. It was certainly a win for the underdogs, and any thoughts of prolonged success were halted by poor management.

The following two seasons meant their glory was short lived and a 4th place finish the following season was nothing compared to the capitulation that followed in 1999-2000 where they avoided relegation by five points. Problems had surfaced through the poor management of finances and a change of manager had rocked the club and affected results.

Management decided to take drastic action and Dortmund became the first, and only, publicly traded club on the German stock market. This generated money which enabled the purchases of Marcio Amoroso who scored 28 goals in his time at Dortmund, finishing top scorer in their title winning season in 01-02. The front line of Jan Koller, Ewerthon and Amoroso was prolific and with the addition of the creative Tomas Rosicky built on the defensive strength of Lehman in goal and Metzelder in defence all underpinned by their coach; their once formidable sweeper Sammer. Eventually, this side appeared to have got over it’s problems on and off the pitch.

However, the same problem surfaced; mis-management of finances. Having spent beyond their means on foreign imports; Rosicky (€14.5m), Koller (€10.5M), Marcio Amoroso (€25m) who all arrived in 2001, Dortmund’s fortunes then steadily declined for a number of years.

Heavy debts of  £125 million led to the sale of their ground due to their failure to advance in the 2003 Champions League, (amazingly they had budgeted for Champions League football without the guarantee of actually being in the competition.) This put the club on the brink of bankruptcy in 2005 and Dortmund were on the brink of financial collapse. Success had come at a cost and one of the biggest teams in Europe were on the brink. 

During 2005 - 2008 Dortmund achieved only mid table finishes, they had lost their players due to a mass clearout due to their over indulgent ways and were now regarded only as a mediocre side. When Thomas Doll, the coach in 2008 led the side to a 13th place finish, their worst position in 20 years, it appeared that the "might" of Dortmund was never to be again.


A new beginning

A new management team came in with the intention of slashing costs and boosting commercial activity. They were also needing a new manager, and they made, in retrospect,  an inspired choice in Jurgen Klopp. The highly-rated young manager Klopp had just lead Mainz into the Bundesliga for the first time in their history. He was regarded highly in Germany as a progressive, disciplined coach. He was hired on an initial two-year deal with the re-mit to make Dortmund respectable once again; this time using a sustainable model which would not burden the club with debts.

His focus had to be on youth development, any signings would need to be young players for cheap. So he set out then with the intention to build a side of hungry, young players whose value would gradually improve. A version somewhat to Arsenal, who buy young and cheap and sell on for more. A business model for growth and sustainability, yet for success?


The rise of the new Dortmund

Klopp’s impact was almost imminent, as the club won the DFB Supercup in his first competitive game. They finished in 6th place, much improved on 13th and having lost only five of their 34 league games they boasted the best defence in the league. He understood the importance of building the defensive foundations; Klopp favours the German national sides 4-2-3-1 system, with an emphases on pressing, effective possession and imaginative attacking interplay. 


He decided to build his defence with Neven Subotic, the Serbian defender signed from Klopp’s former club Mainz for a bargain €4.6m, and Mats Hummels, the talented German youngster who was deemed not good enough at Bayern who joined on an initial loan deal from Bayern,  before signing permanently at the end of the season. Their partnership has been the foundation for Dortmund's success and shows that with the right manager, expense is not the answer to every problem. 


The following season Klopp added the striker Lucas Barrios to his side for €4.2m and the German midfielder Sven Bender, Barrios would go on to score 19 goals in his debut season, playing as the focal point in the managers preferred 4-2-3-1 formation, finising 5th and 13 points behind champions Bayern 


The on-field improvement that Klopp’s side was making, allied with the support that he was receiving from the Dortmund supporters, indicated that times were changing at the Westfalenstadion. That following season the squad remained one of the youngest in the Bundesliga, with an average age of just 24, and the coach had full belief in the players already at his disposal.

They had to be shrewder because of their restricted budget and more precise in their scouting. With their in-depth scouting network, working from a template in order to recruit players based on their attributes more than reputation they found Kevin Großkreutz Bundelsiga 2.


They have managed to capture Shinji Kagawa who was found in the J-league 2nd division, bought for just £300,000 he is proving to be a very shrewd piece of business. Kagawa is quick, mobile and creative and his performances this season in Gotze’s absence have been terrific. 


The inclusion of Nuri Sahin, another youth product from their Academy had a vital impact on their title winning season. Deemed too slow by many, Klopp brought him back from his loan from Feyenoord and made him his playmaker, setting the tempo for the rest of the side. He scored four and assisted eight in the season and a move to Madrid was no surprise if you saw his performances and impact for this side. 






The future is bright

After three years at Dortmund Klopp has taken them from 13th to Champions. With debt-reduction Dortmund's main aim, Klopp had to buy carefully and the championship-winning squad cost last season cost less than £5m to assemble. They didn't just win it, they did in style. In the end winning by seven points, yet at one stage the lead was thirteen. Although other teams around them had poor seasons, there was something about this Dortmund team which indicated a new force had awoke in Germany. And this season they are back on top again.




After a relatively slow start due to a focus on European competition they have improved and their form has overtaken the early leaders and seemingly uncatchable Bayern side. However, undefeated in the league since September 18th Dortmund have won 17 games since then, drawing four. The run has been quite astounding and has knocked Bayern back, currently Dortmund have a five point lead at the top. 

The future looks bright for Klopp’s side also, he himself appears settled and talk linking him to other clubs appears very wide of the mark. Mario Gotze has just signed a new long term deal, which has surprised many. However, Dortmund are his home club side and those in England should not be so quick to assume that because of his talent he “must” move to the Premier League. He is still young and like Messi has shown, loyalty to the club who made you can often times be more beneficial. 


Many examples of the “next big thing” have left at young ages to go abroad and have more than often flopped. A great example is Anderson at United, or Ricardo Qauresma who left Portugal too early. Gotze has struggled with injury this season and it may be better to wait for a few more seasons before leaving Dortmund. It is exciting times for the club, confirming already the return of another Dortmund youth product Marco Reus from the Bundesliga’s surprise package Monchengladbach.

Dortmund may be resigned to losing some of their players in the coming years, yet this is a compliment to the work they have done. Where before they were buying the talent for big sums, now teams are wanting theirs. This is a sustainable model for success, enabling profitable finances which keep the team safe. With the scouting system they have in place and a youth academy fit to rival many in the world, things look very good for Dortmund now. The Dortmund model is one for English clubs to learn from, it can be seen in the national team.

So what was the key?

The transformation that Klopp has achieved is nothing short of miraculous. This is a team who for the past decade has wallowed in mid table mediocrity, a victim of overspending and unsustainable growth. From 2004-2010 the team did not finish above 5th. It shows that with the right man in charge and a relationship between the youth academy and senior side, sustainable growth is possible. 

The academy is impressive, situated next to the senior buildings there is a feeling of togetherness and a sense of German efficiency where you know that they are doing things right. The atmosphere is positive and their emphasis on education and patience is reflected in Mario Gotze, who at 17 was still pushed to finish his education. I wonder how many clubs in England would have the same mentality. The fact that they also have an Under 23 side indicates that they allow players to develop to their full maturity and not judging them at 14-16 like what happens here. 

There have been significant factors to the rise of youth players in Germany. Firstly, they began opening up their citizenship laws and began to integrate more players from immigrant families. Mesut Ozil, Sami Khedira and Dortmund's Nuri Sahin are examples of those who come from Turkish descent. 


Added to that the rules which the German FA have enforced from FIFA regarding the 6+5 rule and the evidence of sustainability and effective youth development is there. How many English youth players have Chelsea brought through in the past ten years, John Terry and now Josh Mceachran, is this good enough? And Arsenal, famed for their youth development, yet there has only been Ashley Cole, Kieran Gibbs, Jack Wilshere and now Yennaris who are English products brought through their Academy. It is only United who have the best reputation for developing home grown talent from the bigger sides, you have to look lower down the leagues to see clubs doing more; Southampton, Watford and Aston Villa have good reputations for developing first team players.Yet this is surely not enough?! 


Sustainable future is the key

The current state of the global economy is rather unstable. The economy which once seemed solid and reliable is becoming increasingly fragile. From an economic point of view, acting responsibly and considering the consequences and implications of one’s decisions is obviously more important than ever.  Therefore, the simultaneous striving for economic success and growth is a balancing act that presently poses a special challenge. The Bundesliga has been embracing it for years. It all shows the efficiency of the German model, one which we should aim to replicate in this country as much as possible. Is there talent in the lower leagues, of course there is. 

The English Premier Average financial power compared to Bundesliga is amazing, revenues in the English league are £2.3 billion compared to Germany which is £1.7 billion. The money in England improved the sides during the past decade, yet the game has evolved and sides like Dortmund and Barcelona have shown that home grown talent can be more sustainable and can lead to more success than trying to do what Man City, Chelsea, Real Madrid and Bayern have attempted in their “Galactico” projects. 

The Bundesliga doesn’t have financial doping like Chelsea or Manchester City. The league is imbalanced in England due to these owners wealth. The average Bundesliga club has significantly less debt. And the average Bundesliga club has on average better youth players, which can save the clubs transfer fees and wages as young talent you produce has small contracts.

Dortmund had major financial issues at the turn of the century; they were quite simply on the verge of going out of business. They realised that a sustainable model of success was required for their survival and the modern economic climate. They invested in youth and improved their scouting network, it's worked out well for them and more and more clubs need to wake up to the fact a sustainable model will ensure stability and long term survival. A lesson for those in England who are right now enjoying a bubble which will inevitably burst. 


Dortmund may have been forced into developing talent, yet they have seized their opportunity we both hands.The Dortmund model represents the changes that Germany took to make them great again. With a little help from the directors of Dortmund's youth team, Klopp has hand-crafted the team into what it is today. Dortmund have shown that with the right people in place, sustainable success is possible.  Jurgen Klopp has nurtured and developed rising talent, showing that spending lots of money is not the only answer to success.



The Whitehouse Address is on Twitter @The_W_Address

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