MANAGEMENT REPORT 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 UEFA is currently consulting on potential reforms income from TV marketing in recent years, the to its Financial Fair Play guidelines, which will likely COVID-19 crisis meant that the auction for the be resolved at the end of 2021. 2021/2022 to 2024/2025 seasons did not bring as much income for the clubs of the first and As past experience has demonstrated, the risk of second Bundesliga divisions as in previous rights key players switching clubs can materialise at periods; in total, EUR 4.4 billion will be distributed any time at Borussia Dortmund. The departure of in the coming four years. Future instalments of key players who are part of the club's future plans TV marketing income to be paid by DFL Deutsche would not only weaken the team at certain Fußball Liga to the clubs will continue to depend positions, but also as a whole. Even if success on maintaining match operations. The functional rarely rests on the shoulders of any single player, health and safety protocol for the 2020/2021 the roster should be planned so that any season has shown that it is possible to see a unexpected departures do not leave holes that season through to a trouble-free conclusion would need to be filled at short notice with despite the COVID-19 pandemic. players of equal quality. In an attempt to mitigate the sporting consequences of key players According to UEFA, Financial Fair Play is about switching clubs, Borussia Dortmund plans its improving the overall financial health of European 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 catastrophes expenditures. The risk of failing to comply with the can include fire, stampedes, potential terrorist Financial Fair Play rules and potential exclusion attacks or other acts of violence. Going forward, from international competitions or potential the Company will continue to regularly assess the financial sanctions would have serious financial quality and reliability of security staff and consequences for Borussia Dortmund. The now very 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 UEFA competitions underscore the importance of security, safeguarding and monitoring the access both qualifying and obtaining the requisite licences roads, and safeguarding the property during visits for international club competitions. To minimise this on non-match days are just some of the risk therefore, compliance with the relevant countermeasures currently being implemented by requirements and target/actual comparisons are the club's Security department to provide security constantly reviewed. Several European clubs have at the stadium. 73