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

MANAGEMENT REPORT
In order to minimise the risk of relegation,
Borussia Dortmund has strengthened the professional
squad significantly for the 2007/2008 season
and therefore at the same time substantially
improved the chances of qualifying for international
competitions in the following season.
THE RISK SITUATION IN SUMMARY
Borussia Dortmund takes appropriate measures to
counteract the risks it faces. New risks are systematically
incorporated in the risk management system as
they arise, communicated and highlighted, and a
search is made for effective countermeasures. At the
present time, there are no recognisable risks that
could endanger the continued existence of the
Borussia Dortmund Group.
Borussia Dortmund has succeeded in minimising
risks which could adversely impact its development
or jeopardise its existence. The fact that we are not
involved in competitions on an international level is
no longer a threat to Borussia Dortmund's existence.
If we succeed in qualifying for the UEFA Cup or the
Champions League, our financial condition and
results of operations will improve even further.
FORECAST REPORT
ANTICIPATED DEVELOPMENT OF THE COMPANY
After having completed the restructuring of the liabilities
of Borussia Dortmund GmbH & Co. KGaA
and the selective strengthening of its professional
squad, Borussia Dortmund should once again be in a
position in the medium term to compete for one of
the first five places on the Bundesliga table.
We will continue on the course we have set for ourselves
on a solid equity base and without exposing
ourselves to financial risks, so that BVB will once
more become a leading football club in Germany and
preferably also in Europe.
EXPECTED GENERAL ECONOMIC ENVIRONMENT
Professional football in Germany is booming as never
before. The Bundesliga's unfailing popularity with the
fans and the resulting interest of media companies and
sponsors has also made it a commercial success story.
Since the formation of the League Association
(Ligaverband) in 2000, the clubs and corporations of
professional football have not been able to produce any
figures as good as those in the past football season. And
this although the increase in TV revenues is not yet
included in the present figures because the media con-
tracts only entered into effect in July 2006. As the
KirchGruppe had been the chief source of money for
the clubs, its insolvency presented them with a major
challenge. Now, five years down the line, the league is
in a better position than ever before. Professional football
has emerged all the stronger from the crisis in the
television and advertising markets. Tough cutbacks on
the one hand, and a long-term approach to management
with a readiness to invest in the future on the
other, are starting to pay off.
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