GROUP MANAGEMENT REPORT trouble-free season. The 2020/2021 season was UEFA competitions underscore the importance of completed without major scheduling issues thanks both qualifying and obtaining the requisite licences to the systematic implementation of DFL's health for international club competitions. To minimise this and safety protocol – even if the majority of matches risk therefore, compliance with the relevant were played behind closed doors. requirements and target/actual comparisons are constantly reviewed. Several European clubs have The second risk classified as high-priority in this already been disciplined and banned from category is the change in income from TV international competitions for violating Financial marketing. After DFL Deutsche Fußball Liga's Fair Play rules. In the wake of the COVID-19 crisis, auctions for TV rights led to a steady rise in income UEFA is currently consulting on potential reforms from TV marketing in recent years, the COVID-19 to its Financial Fair Play guidelines, which will likely crisis meant that the auction for the 2021/2022 to be resolved at the end of 2021. 2024/2025 seasons did not bring as much income for the clubs of the first and second Bundesliga As past experience has demonstrated, the risk of divisions as in previous rights periods; in total, EUR key players switching clubs can materialise at any 4.4 billion will be distributed in the coming four time at Borussia Dortmund. The departure of key years. Future instalments of TV marketing income players who are part of the club's future plans would to be paid by DFL Deutsche Fußball Liga to the clubs not only weaken the team at certain positions, but will continue to depend on maintaining match also as a whole. Even if success rarely rests on the operations. The functional health and safety protocol shoulders of any single player, the roster should be for the 2020/2021 season has shown that it is planned so that any unexpected departures do not possible to see a season through to a trouble-free leave holes that would need to be filled at short conclusion despite the COVID-19 pandemic. notice with players of equal quality. In an attempt to mitigate the sporting consequences of key According to UEFA, Financial Fair Play is about players switching clubs, Borussia Dortmund plans improving the overall financial health of European its roster well in advance, including by binding club football. The regulations first entered into force players to long-term contracts, uses its high in 2011 and serve as a catalogue of measures for transfer proceeds to reinvest in the squad and clubs competing in UEFA's international club employs a wide network of scouts. competitions. Clubs in breach of the regulations face penalties up to and including bans. In practice, The further risk in this category is the risk of a Financial Fair Play governs the ratio of revenue to potential stadium catastrophe. Stadium expenditures. The risk of failing to comply with the catastrophes can include fire, stampedes, potential Financial Fair Play rules and potential exclusion terrorist attacks or other acts of violence. Going from international competitions or potential forward, the Company will continue to regularly financial sanctions would have serious financial assess the quality and reliability of security staff consequences for Borussia Dortmund. The now very and specifically train them in the prevention of lucrative distributions available from UEFA and the catastrophes. Structural improvements to SIGNAL international prestige derived from taking part in IDUNA PARK for the purposes of enhancing 161