MANAGEMENT REPORT compensate for cancelled (hospitality) services. The premises, and is regularly adjusted to account for majority of (hospitality) services that Borussia current conditions. The scenarios calculated Dortmund was unable to render due to the ongoing covered in particular different levels of success COVID-19 pandemic were compensated for by achieved by the team and various external means of other (advertising) services, meaning that conditions attributable to COVID-19 in order to Borussia Dortmund's partners have asserted identify any liquidity bottlenecks early and to initiate practically no compensation claims. appropriate countermeasures designed to secure The fact that new agreements have been entered liquidity. They included extending the existing EUR into with partners despite the ongoing pandemic 60,000 thousand overdraft facility by EUR 60,000 suggests that there will be no major decline in the thousand to EUR 120,000 thousand. willingness of potential sponsors to seek out new opportunities once the crisis is over. In order to keep the risk associated with the volume of player salaries as low as possible, the club Due to the ongoing COVID-19 crisis, the risk of bad budgets personnel expenses with transfer deals in debts due to insolvency remains classified as a mind at the beginning of each season. The primary high-priority risk. focus is on the fixed components of the players' The COVID-19 crisis has caused one of the worst remuneration, since these are independent of the economic downturns for Germany and the world team's performance during a given season. in the post-war period. The ongoing pandemic will Variable remuneration components are also continue to impact the solvency of companies and considered when planning the budget, but generally football clubs alike. Borussia Dortmund anticipates only apply once certain sporting objectives are that problems could arise with regard to transfer achieved that in turn generate additional income. receivables. The primary objective continues to be The personnel expenses incurred are continuously keeping bad debts to a minimum and to ensure that monitored, extrapolated on the basis of current the Company has the liquidity it needs at all times. circumstances, and reported to the management. That is why it is all the more important to follow through on the action already taken, such as The Group is not presently exposed to any conducting credit checks on foreign businesses or high-priority risks in the interest rate risk, credit changing the general contractual framework to risk, resources riskand ecological riskcategories. include high up-front payments. Dunning procedures are likewise particularly vital. Furthermore, additional action was taken to ensure liquidity and counter any potential bad debts. Borussia Dortmund places utmost importance on maintaining its liquidity and, after assessing its risks during the ongoing COVID-19 pandemic, therefore continues to classify the risk associated with this as high priority. The financial and liquidity planning apparatus that has been in place for many years considers a variety of scenarios and different 75