Annual Report 2006/2007 KGaA/Group - BVB Aktie - Borussia ...

GROUP MANAGEMENT REPORT
Thus we will concentrate on the core business of
Borussia Dortmund and, in so doing, will not be
taking any financial risks which cannot be calculated
in advance. In essence, this means that we will only
be incurring capital expenditure to the extent permitted
by the anticipated financial leeway. In pre -
paring the capital expenditure budget, we will therefore
not include any uncertain sporting successes
which, if they failed to materialise, would result in
new indebtedness.
ANTICIPATED DEVELOPMENT
OF LIQUIDITY
Following the implementation of the capital increases,
the further reduction in debt consequent thereto
and the improvement in earnings, we will as from the
2007/2008 financial year be in a position to generate
substantial financial surpluses, which will significantly
improve Borussia Dortmund's room for manoeuvre
and its competitiveness.
OPPORTUNITIES
Borussia Dortmund's greatest opportunities lie in
unlocking and exploiting additional revenue potential
by participating in international competitions,
such as the UEFA Cup and the UEFA Champions
League. Participation in the UEFA Cup group phase
alone would result in additional revenues of around
EUR 5 million, generated through extra TV, ticketing
and sponsorship revenues. According to our estimations,
we would be guaranteed at least EUR 10
million in additional sales if we were to reach the
group phase of the UEFA Champions League. In
addition, an international presence would almost
certainly have a positive impact on the merchandising
business.
Participation in the national cup competitions, the
DFB Cup and the DFL League Cup, represents further
significant earnings potential. However, the
financial benefits also depend, to a large extent, on
which teams we are drawn against.
Borussia Dortmund's professional squad, which
includes a large number of young and talented players,
has enormous potential. These players will be
able in the future to lead BVB back to the top of the
table in Germany, and possibly even further. In addition
to the sporting success we are striving for, this
team will enable us to achieve a significant improvement
in profitability and offers tremendous transfer
potential for the future.
DEVELOPMENT FORECAST IN SUMMARY
Since the completion of the restructuring focusing on
the buyback of the stadium shares, Borussia
Dortmund is once again in a position to make investments
in the professional squad, which will significantly
improve the quality of the team. The contracts
with the professional players Marc Ziegler, Robert
Kovac, Mladen Petric, Giovanni Federico, Diego
Klimowicz and Jakub “Kuba” Blaszczykowski demonstrate
the point impressively.
In our future development, we will not enter into any
further financial risks that could jeopardise the existence
of Borussia Dortmund. Generating financial
surpluses will be a prerequisite for further investments
in the professional squad. We are convinced
that this is the right way to establish Borussia Dort -
mund in the medium term as one of the leading clubs
in the Bundesliga.
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