The key predictable factor used to forecast the expected general economic environment is the income from TV marketing. At the national level, DFL Deutsche Fußball Liga reported record revenues for the 14th year running. The national TV rights for the 2017/2018 to 2020/2021 cycle were sold for a record EUR 4.64 billion. Together with the international TV rights, the revenue could exceed EUR 6 billion. The price paid for the national TV rights is an 85% increase on the deal. In addition to the income from national TV marketing, participation in international club competitions is a key driver of Borussia Dortmund's profitability.
Commercially successful professional football operations are no longer limited to just regional or national levels. The team's success in these competitions is very much a focus in all plans. Qualifying for the group stage of the UEFA Champions League alone continues to place Borussia Dortmund in a better financial position. Playing and advancing in the competition not only generates income, it can also widen the club's media and brand coverage, which promotes the club's interaction with existing fans and encourages others to begin following Borussia Dortmund. The club intends to promote these effects with a progressive internationalisation strategy that is regularly tailored to current trends. In light of this, Borussia Dortmund aims to further expand and professionalise its digital presence. Borussia Dortmund thereby responds to social trends and to a large degree leverages the attractiveness of the Borussia Dortmund brand. The growing international awareness of the brand that this gives rise to allows the club to tap foreign markets.
The marketing of digital advertising can be seen as a result of this development. During the 2018/2019 season, Borussia Dortmund was the only club in the Bundesliga to market virtual advertising, primarily in Asia, at home matches. This brought Borussia Dortmund in contact with new customers. Borussia Dortmund believes there is even more potential to generate revenue using this form of marketing. Moreover, LED advertising boards will be installed in the upper west, north and south stands at SIGNAL IDUNA PARK, which will offer additional potential to generate revenue during the 2019/2020 season.
Borussia Dortmund has partnered with Amazon Prime Video to broadcast a documentary series in more than 200 countries in the 2019/2020 season. This is yet more proof that the club's internationalisation strategy and appeal translate into economic success.
Continuity remains the focus of Borussia Dortmund's approach to marketing advertising space.
A majority of the advertising revenue in the coming years is already fixed due to the club's long-term partnerships with the primary sponsor, the equipment supplier, the holder of the stadium's naming rights, Champion Partners and other partners. Moreover, there is every indication that the club will again sell out its tickets for the hospitality areas.
Attendance at SIGNAL IDUNA PARK has also continued to improve during the past five seasons and stands at nearly 100%. The number of advance tickets that fans can order has to be partially regimented on account of the high number of season tickets and the steady rise in demand for match tickets. Due to the high demand for season tickets, the number of no-shows per season ticket will be recorded beginning with the new season. By doing so, Borussia Dortmund wants to make the process fairer for fans who do not hold season tickets and increase their chances of obtaining tickets for matches at SIGNAL IDUNA PARK.
The product range strategy was revamped, leading to a positive revenue trend at BVB Merchandising GmbH. By rolling out (new) products during the season more frequently and placing a greater focus on the latest trends, fans are spurred on to visit the fan shops and online shop more often, resulting in higher revenue.
Transfer deals are an important part of Borussia Dortmund's business and, as in previous years, represent a significant source of revenue. However, in view of the developments in the economic environment, Borussia Dortmund on principle only takes transfer income into limited account in its planning. The transfer policy nevertheless presents significant opportunities to generate substantial revenue regardless of the club's sporting success. Consequently, transfer deals are always assessed against the background of the current season and are thus difficult to forecast. High transfer sums often go hand in hand with a drop in quality within the team, but it cannot be ruled out that value-driven transfers will be concluded contrary to the Company's sporting interests. Given Borussia Dortmund's sustained success, its players are increasingly piquing the interest of other top clubs.