Risk management

Borussia Dortmund’s activities in all divisions are exposed to a wide variety of risks that are inseparably linked to the conduct of business.

The sections below focus on possible future developments or events which could cause Borussia Dortmund to perform either better than expected (opportunities) or worse than expected (risks). The respective impact of opportunities and risks are generally presented separately and are not offset against one other. Generally speaking, risks and opportunities are assessed over a mid-length term of three years. All risks of loss to which the Company is exposed (individual and cumulative risks) are monitored and managed within the risk management system. Borussia Dortmund assessed the identified opportunities with respect to their impact on budgeted earnings figures in the context of existing planning and reporting processes. Opportunities are considered and documented in a process that is independent of Borussia Dortmund’s risk management system.

The consolidated group for risk management purposes is identical to the consolidated group in the consolidated financial statements

A functioning control and monitoring system is essential for identifying risks early and for assessing and counteracting them. It is the responsibility of the internal risk management system to monitor and control such potential risks.

The risk management system is based on principles and guidelines laid out by the management. These principles and guidelines are designed to facilitate the early identification of any irregularities so that appropriate countermeasures can be taken immediately. In order to ensure the highest possible level of transparency, risk management has been incorporated into the organisational structure of the Group as a whole. All departments and divisions are required to immediately report any Company-relevant changes in the risk portfolio to the management. The risk management system is also an integral component of the overarching planning, steering and reporting process.

In financial year 2025/2026 as well, refinements were made to Borussia Dortmund’s risk management system as part of IDW AuS 340 (revised version), the standard for audits of the risk early warning system promulgated by the Institute of Public Auditors in Germany (IDW). These refinements relate primarily to the risk policy and documentation of processes.

The currency and detail of the regular risk reports given to the governing bodies of Borussia Dortmund keep them informed of the Group’s current risk profile. Reports are submitted to the Director of Finance and management on a quarterly and (depending on urgency) ad hoc basis. The Audit Committee also receives quarterly reports. This ensures that the Company’s decision-makers have adequate flexibility to be able to monitor and manage risks. Furthermore, the Internal Audit department regularly reviews the risks on a sample basis in connection with the quarterly risk reporting and ensures process-independent monitoring of the risk management system.

This year, the risk inventory procedure implemented with the objective of cataloguing and assessing all risks has again proven effective as a management tool. Risks are identified, discussed and reviewed in consideration of current circumstances in one-on-one meetings or plenary sessions in order to assess the current likelihood of their occurring and their potential consequences.

In consultation with the risk owners, each risk is given a qualitative rating of between 1 and 4, with 1 indicating a low level of risk and 4 indicating a very high level of risk.

A risk impact assessment is carried out both before and after the identification and development of countermeasures to reduce the risk. The risk impact assessments are weighted before and after countermeasures based on a ratio of 1:2, with weighting prioritising the probability and consequences of each risk after countermeasures take effect. In mathematical terms, the risk impact assessment (before countermeasures) is derived by adding the probability of the risk and its consequences before countermeasures, while the assessment (after countermeasures) is derived by adding the probability of the risk and its consequences, and multiplying this figure by two.

If the assessment of an individual risk falls within the top third of the scale (a score of 17 to 24), Borussia Dortmund classifies it as a high-priority risk. Particular attention is paid to such risks, since they are capable of having a material adverse and long-term effect on the Company’s assets, liabilities, financial position and profit or loss. There are currently 27 (previous year: 27) risks that are classified as high priority.

In the context of applying the provisions of IDW AuS 340 (revised version) to evidence its risk-bearing capacity, Borussia Dortmund has conducted a quantitative assessment of all risks identified in the qualitative risk inventory procedure outlined. The expected loss value (net basis) of an individual risk from the risk quantification of all risks was also compared with a threshold value of EUR 1,000 thousand that Borussia Dortmund has defined as material. Risks that – on a solely quantitative basis – may not have a material impact on the net assets, financial position and results of operation may nevertheless be managed and treated as high-priority risks since they are of overriding strategic significance for Borussia Dortmund.

Categorisation of risks

In accordance with the recommendations under German Accounting Standard DRS 20, and to ensure ease of reference, Borussia Dortmund divides its risks into main categories. The nine defined main categories (strategic risk, personnel risk, macroeconomic risk, competitive risk, liquidity risk, interest rate risk, credit risk, resources risk and ecological risk) as at the end of the reporting period are presented and explained in greater detail below.

All 62 (previous year: 62) identified risks that could have a direct impact on the Company fall within these categories. In comparison with the previous year, the total number of risks identified was unchanged.

One new risk (changes in transfer rules) was added and one risk (interruptions to match operations) was no longer classified as one of the 27 risks that had been classified as high-priority in the past period.

The disclosures on opportunities and risks continue to be shaped by geopolitical conflicts throughout the world. This relates primarily to the ongoing wars in Ukraine and Iran and the potential global trade wars in the wake of the United States’ protectionist and unpredictable tariff policy (see also the detailed description of the high-priority risk of political developments).

In accordance with the provisions of IDW AuS 340 (revised version), Borussia Dortmund has subjected all 62 identified risks under the risk inventory to an internal quantitative assessment (assignment of certain probability intervals and calculation of specific losses for every risk, where possible; application of average value method for non-quantifiable risks) so as to provide a complete picture of Borussia Dortmund’s risk-bearing capacity. Risk-bearing capacity is specified as the maximum level of risk that the Company can bear over time without jeopardising its status as a going concern. For this purpose, the overall risk exposure is compared against available equity and the existing liquid assets.

The following is a discussion of the 27 high-priority risks, which as part of the risk quantification process were all assigned an expected loss value (net basis) of at least EUR 1,000 thousand, in their respective categories.

Category 1 – strategic risk

Borussia Dortmund defines strategic risk as risk arising from incorrect business decisions, poor implementation of decisions or the inability to adapt to changes in the corporate environment. Strategic risk also arises from unexpected changes in market conditions and the environment in which the Company operates, which bring with them negative consequences for the Company’s assets, liabilities, financial position and profit or loss.

This category includes four high-priority risks:

The risk that financial planning is dependent on sporting success describes in principle the risk that failing to achieve planned sporting objectives could lead to a lack of adequate income or proceeds. To account for any and all developments both on and off the pitch, the Company revises and updates its longstanding financial and liquidity planning at least on a monthly basis using on the latest premises. Experience in recent years has shown that external conditions can change quickly and fundamentally and that planning projections must therefore be modified continuously to reflect the latest developments. In the previous 2024/2025 financial year, the various planning scenarios for the following season were shaped in particular by the uncertainty that persisted up until the final match day of the Bundesliga season as to whether Borussia Dortmund would qualify for an international cup competition in the 2025/2026 season and, if so, which UEFA competition that would be. By contrast, in the 2025/2026 season, Borussia Dortmund secured its place in the UEFA Champions League, and thus planning certainty, early on. In addition to the income statement and the statement of financial position, the forecasts also include the development of Borussia Dortmund’s liquidity. It allows the management to monitor the current and future financial position of the Company at all times and to take any necessary action. Due to developments with regard to income from international TV marketing in particular, the amount that a club is certain to receive for a given subsequent season varies greatly from a first-place finish to a seventh-place finish in the Bundesliga. Qualifying for the UEFA Champions League guarantees much higher proceeds than qualifying for the UEFA Europa League or UEFA Europa Conference League, let alone if the team fails to qualify for any international competition at all. Given this, action has already been taken to increase the variability of personnel expenses in the professional squad with regard to sporting performance, particularly in the UEFA competitions and the qualification for these competitions, and this now includes all salary components. This includes applying a graduated scale to the UEFA competitions and reducing/increasing the salary components accordingly. Borussia Dortmund is constantly looking into what further adjustments it can make. Despite all efforts to save costs, the fact that a revised earnings guidance was published during the year – following the team’s exit in the knockout phase play-offs of the UEFA Champions League and the subsequent elimination of the budgeted potential earnings from that competition – underscores how fundamentally dependent Borussia Dortmund is on sporting success. Borussia Dortmund is continuously striving to reduce this dependency by taking steps to systematically save costs, particularly in the professional squad and other operating expenses, and to optimise its earnings potential in those income streams it can control directly, in particular sponsorships and merchandising.

Share price performance describes the performance of a security, an index, shares or a portfolio, but also the performance of the management of an investment fund with respect to its investment objectives. The Group is very conscious of the risk associated with the performance of Borussia Dortmund’s shares and continually analyses the Company’s value on the capital market and the consequences of it being undervalued. A key component of this risk is the impact of these factors on potential corporate action in the future and the Company’s appeal to business partners. This risk is countered through continual communication with the capital market. The shares have been listed on the Prime Standard segment of the Frankfurt Stock Exchange since May 2014 and were also admitted to trading on the SDAX. As a result of the restructuring of the DAX and other indices, Borussia Dortmund left the SDAX with effect as at 20 September 2021. Some two years later, Borussia Dortmund was once again admitted to trading on the SDAX with effect as at 25 July 2023. Nevertheless, due in part to share price fluctuations that could result in insufficient market capitalisation, there is always a risk of being dropped from the SDAX. Following the rebalancing of the DAX blue-chip indices in early June 2026, Borussia Dortmund was delisted from the SDAX. For several years now, Borussia Dortmund has attended various roadshows in Europe and the United States (in virtual form) in an effort to keep existing investors up to date and bring any prospective investors on board. The fundamental shareholder structure, which features a high free float and key strategic partners, did not change during this financial year. In financial year 2022/2023, Borussia Dortmund had offset Borussia Dortmund GmbH & Co. KGaA’s loss carryforwards/net accumulated losses against the revenue/capital reserves so that it can legally once again pay its shareholders a dividend in future financial years, provided it generates the necessary net profits. Borussia Dortmund has now done so again for two consecutive financial years (2024/2025 and 2025/2026), thus returning to the practice it had established prior to the pandemic of maintaining continuity with regard to its dividend distributions. In the second quarter of 2025/2026, Borussia Dortmund – in accordance with the resolution of the Annual General Meeting on 24 November 2025 – once again distributed a dividend. Based on the net retained profits of EUR 7,653,240.02 for the 2024/2025 financial year, a dividend of EUR 0.06 per share carrying dividend rights was distributed to the limited liability shareholders (totalling EUR 6,622,639.20).

Borussia Dortmund considers the third risk in this category to be the risk of conflicting goals of sporting and commercial success. It is important that Borussia Dortmund continues to pursue balanced business policies with the aim of ensuring that the club remains competitive and also focussed on meeting the financial performance indicators. Borussia Dortmund will continue to avoid material financial risks that could arise on account of uncertain sporting successes. As in previous years, Borussia Dortmund further counters this risk by setting strict budgets for the individual divisions and undertaking corporate planning on a revolving basis using various planning scenarios. The budgeting process was improved and made more granular this financial year to further optimise costs across all areas, particularly in the professional squad and other operating expenses. Furthermore, the Company also uses these planning scenarios to calculate various sporting successes and earnings and liquidity effects potentially presenting additional opportunities for financial investment or shortfalls. Experience in recent years has shown that external conditions can change quickly and fundamentally. It is therefore of fundamental importance to modify the planning projections continuously, to strike a balance between the need to remain competitive on the pitch and ensure economic stability and success, and to systematically implement the countermeasures that have already been developed to reduce the likelihood of the risk occurring. The transfer business remains a key action area for Borussia Dortmund and is one of the most important sources of income in the business of football. Achieving high sums for transfers often involves a loss of sporting quality within the squad, but after carefully weighing up all of the athletic and business aspects it is possible that value-driven transfers may also be concluded contrary to the Company’s sporting interests.

The fourth high-priority risk in this category is IT cyber risks, which are closely linked with protecting confidential information. This essentially refers to the risks that arise in an increasingly digitalised and interconnected world – one in which the IT security environment will remain tense, as the German Federal Office for Information Security (BSI) states in its 2025 annual report. The BSI’s data show that both the scale and the sophistication of cyber attacks have increased significantly. Ransomware attacks in particular – in which systems are encrypted and a ransom is demanded – as well as geopolitically motivated attacks by state-sponsored actors (“APT groups”) pose a growing threat. The consequences of such attacks can include: compromising confidential information (e.g., unauthorised access to sensitive data or targeted data espionage), compromising data integrity (e.g., data corruption by means of malware), compromising IT system or data availability (e.g., internal business interruption, outages in external communications). On the other hand, IT cyber risks arise from the opportunity for large volumes of information to be disseminated widely, cheaply and at breakneck speed – for instance, by means of e-mail campaigns targeting companies or calls for boycotts on social media. Another aspect is social engineering, which is a technique attackers use to deliberately prey on human vulnerabilities to gain access to sensitive systems or information. AI-powered attack methods further exacerbate these threats, as they enable cybercriminals to generate deceptively realistic phishing e-mails or fake identities with unprecedented quality and speed. Borussia Dortmund seeks to counter these IT cyber risks by reducing the risk of occurrence through investments in IT security measures and regular security scans (penetration tests). This included steps to enhance network security by segmenting the network and introducing certificate-based authentication protocols and the further development of the identity and access management (IAM) framework. Furthermore, Project IT Security, a general initiative to identify and address potential security vulnerabilities, is continuing to make steady progress. For that purpose, Borussia Dortmund also maintains close ties to an external service provider that specialises in guarding against the latest IT risks. In addition to investing in data security and data protection, Borussia Dortmund has also expanded its IT security training programmes for staff and assessed the effectiveness of these programmes to date by conducting targeted spear-phishing campaigns.

Category 2 – personnel risk

The importance of human resources to companies is growing. The Company’s success is largely dependent on the commitment, motivation and skills of both its sporting personnel and managerial/administrative staff.

This category currently includes six high-priority risks:

Protecting confidential information is also very much so directly connected with IT cyber risks and is a subject that remains in the public eye. Never before has data protection posed so many challenges. In particular, the increasing internationalisation of day-to-day business operations necessitates a detailed understanding of the respective data protection regulations applicable in individual countries. In addition, technical progress harbours many challenges, especially in relation to online data. Hackers stepped up their attacks in recent years, releasing the personal data of politicians, celebrities and others. Action has to be taken to prevent the unauthorised access and manipulation of data. The pace at which new threats are developing is being accelerated by the emergence of new artificial intelligence (AI) technologies. Artificial intelligence is technology that enables machine applications to simulate human intelligence. That means that machines that work with artificial intelligence can learn and assess and solve problems almost as good as humans can. There are already documented cases of automated attacks or fraudulent acts being committed with the help of AI technologies, and the number of cases continues to rise steadily. However, the risks associated with AI technologies do not necessarily have to stem solely from the actions of external actors, but can also arise from improper conduct by internal users. To counter this, a Company-wide AI policy was introduced for the first time. In order to meet the increased cyber security demands in the long term, the IT department’s human resources have already been increased significantly and are set to continue to rise in the short to medium term. Borussia Dortmund does not rely solely on technical solutions to protect confidential information, but also has organisational and physical steps in place: Hard copies of personnel files are protected against unauthorised access by a coherent key management system, mail room staff receive specific instructions on opening mail, and every employee is required to sign a confidentiality agreement.

The risk of periods during which professional players are unable to play (rest periods) can have a major impact on the Company’s success, because they mean that team managers are unable to play the best possible team for the entire season, putting sporting goals in jeopardy. The absence of key players in particular is often difficult to compensate for. The reasons for rest periods include personal match bans, injury or excessive stress. The risk of excessive stress and/or injury and thus the risk of periods during which professional players are unable to play could rise due to the in general tightly packed match schedule in light of the new UEFA Champions League format introduced in the 2024/2025 season (which includes more matches), Borussia Dortmund’s participation in the FIFA Club World Cup in the summer of 2025, the 2026 FIFA World Cup held in the summer of 2026, and the new 2026/2027 Bundesliga season, which was already scheduled to start on 28 August 2026. Borussia Dortmund seeks to minimise these player absences by means of individual workload management based on data analysis and digital tools, and in the 2025/2026 season succeeded in lowering the number of non-contact muscle injuries as compared to the previous year. We deliberately ensure that back-ups are available for every position within the squad so that we can absorb the absence of any individual player.

The world of sport has witnessed a number of serious accidents in recent years. The tragic loss of human life takes precedence – that goes without saying – but the economic consequences for the businesses involved have also been immense. There thus continues to be a risk of a loss of the player base due to travel and other accidents, terrorist attacks and miscellaneous; therefore, Borussia Dortmund continues to classify this risk as high priority.

The high-priority risk of legal transgressions by professional players, club representatives and business partners covers in particular risks arising from misconduct by the professional squad. This includes doping, placing prohibited bets, manipulating matches or engaging in inappropriate behaviour on social media. The consequences of such misconduct may include match suspensions and reputational damage for players and the club, or legal disputes. The action that Borussia Dortmund takes to mitigate this risk includes systematic education, behavioural obligations stipulated in employment/service agreements, and preventative measures to raise awareness among the professional squad and help them avoid such misconduct, even though Borussia Dortmund cannot control the private lives of its players. Borussia Dortmund’s employees and business partners are also subject to specific codes of conduct.

The risk of ill-fated investments in the professional squad continues to be classified as a new high-priority risk. This describes the risk that, for whatever reason, a professional player who is signed fails to live up to the expectations placed in them (e.g., sub-par performances in matches prevent the team from achieving success or the player increasing their market value, both of which would otherwise generate income for the club) and causes significant personnel and investment expenses to be incurred. Due to the increasingly fierce competition for football’s best talents – also in light of the cash-rich competition in Saudi Arabia and England and the increasing frequency of multi-club-ownership models, where one owner or majority shareholder owns multiple clubs –, it is all the more important to individually scout and sign these talented players to Borussia Dortmund at an even younger age. However, this also involves higher risks, because, as a general rule, the younger a player is, the more uncertain their actual future development. That said, ill-fated investments can also be made in experienced players. The appointment of Ole Book, who has extensive expertise in the transfer market, as the new Sporting Director and the increased introduction of variable transfer components linked to individually defined performance parameters (e.g., appearances, scorer points, team success) are aimed at further minimising ill-fated investments in the professional squad and the financial impact of any such ill-fated investments.

The risk of changes in transfer rules was added as a new high-priority risk. Transfer deals are a key component of Borussia Dortmund’s business model. At the same time, national and international transfer regulations are steadily becoming more complex. This is made evident in part by the proceedings concerning Lassana Diarra, in the context of which a class action lawsuit was filed against FIFA and some of FIFA’s fundamental regulations concerning transfers are under scrutiny. Regulatory interventions in the transfer market – for instance, by national and/or international associations or policymakers – could have a significant impact on transfer and loan agreements, transfer fees, agent fees, or other factors. Such potential changes could consequently stand in the way of Borussia Dortmund generating high transfer fees or noticeably hamper squad planning.

Category 3 – macroeconomic risk

Macroeconomic risk arises as a result of Borussia Dortmund’s dependence on general economic and political developments.

There are currently six high-priority risks that fall under macroeconomic risks:

Borussia Dortmund has classified unfavourable macroeconomic developments accompanied by high unemployment and slow economic growth or an economic downturn, as the first risk in this category. After the German economy got off to a strong start in 2026, the growth and inflation forecasts have deteriorated significantly since the end of February 2026 in the wake of the Iran war, in particular the blockade of the Strait of Hormuz and the associated rise in energy prices. The blockade of the Strait of Hormuz has now lasted longer than initially expected. The erratic US tariff policy is also having a noticeably dampening effect on German exports. However, home-grown issues are also weighing on business sentiment, particularly because reforms are only making slow progress and are being overshadowed by disagreements within the coalition government. The further course of the Iran conflict remains unclear, and the pending reforms in Germany harbour the potential for conflict. Even if the Strait of Hormuz were to open again soon and oil and gas prices recede, the effects of the rise in energy costs will continue to be felt for some time to come. The subdued consumer and investor sentiment will likely keep purse strings tight for the time being. The only sources of encouragement are government spending and fiscal programmes relating to infrastructure and defence. Against this backdrop, the German economy is only expected to grow by just under 0.75% in 2026. In 2027, real gross domestic product could grow by 1.25%, if the Iran war comes to an end and a more resolute approach to reforms is taken. The inflation rate has been edging towards 3%, particularly because energy prices have risen significantly. This will continue to drive up costs, even though the fuel tax cut initially slowed the rise in prices. However, if the trend assumed here were to continue, the inflation rate would soon pass its peak. The annual average for 2026 would then amount to just over 2.5%, before returning towards 2% in 2027. This forecast entails considerable risks. It remains to be seen how the US-Iran conflict will develop. A further prolongation of the blockade of the Strait of Hormuz would further reduce growth prospects and heighten the risk of inflation. Doubts are also mounting that the coalition government will show the resolve needed to implement the announced structural reforms and utilise the special borrowing facilities for additional investments (Source: Hamburg Institute of International Economics [HWWI], 8 June 2026).

Right-wing extremism continues to pose a growing societal risk that warrants special attention in light of current social and political developments. Borussia Dortmund is clear and unequivocal in its stance against right-wing extremism and all forms of discrimination. Borussia Dortmund counters this risk through prevention efforts and disciplinary action, acting in concert with a broad network of cooperation partners. By clearly speaking out and working hard on numerous fronts to combat racism, anti-Semitism, hostility towards the LGBTQIA+ community, sexism, violence or discrimination of any type, Borussia Dortmund helps to ensure that the atmosphere in and outside SIGNAL IDUNA PARK is welcoming, cosmopolitan and diverse, thereby living up to its social responsibility.

The increased willingness of certain individuals to commit violence and defame and insult others at stadiums is a risk that will continue to require the utmost attention. Fan violence remained an issue during reporting period, although one that was also often found outside of stadiums. Prevention efforts and security plans ensure that groups which frequently resort to violence can be identified in advance, thereby helping to prevent altercations to the greatest extent possible. Borussia Dortmund will continue to counter this risk with enhanced security checks, camera surveillance, stadium bans and criminal complaints. Additional stadium safety measures will continue to include specific structural changes to entrances going forward. Furthermore, Borussia Dortmund and other clubs from North Rhine-Westphalia have joined forces in the “Stadionallianz gegen Gewalt” initiative in an effort to curb fan violence. They work together with the police with the aim of identifying, isolating and bringing offenders to justice more quickly. At a security summit in October 2024, policymakers and club representatives decided to establish a central commission for stadium bans – based at Bundesliga GmbH – which would take a uniform approach to imposing potential stadium bans on violent offenders. The police in North Rhine-Westphalia stated in the 2024/2025 annual report of the Central Information Office for Sports Operations (ZIS) that of the more than 25 million stadium visitors in the top three leagues in the 2024/2025 season, 1,107 (or approximately 0.004%) suffered injuries. The figure is down compared to the figure reported for the 2023/2024 season.

The categorisation of social media activities as a high-priority risk reflects the fact that new technologies not only have potential for development, but also harbour risk potential. Social media is no longer used solely for communicating with fans and followers, but increasingly also serves as an advertising platform for marketing and sponsoring-related activities. Borussia Dortmund has vastly expanded its digital presence, among other things due to the recent COVID-19 pandemic and the restrictions at times placed on direct contact with fans as a result. This also includes monitoring those activities appropriately. Furthermore, compliance with legal requirements – such as the requirement to place advertisements – on Borussia Dortmund’s wide range of social media channels is key to avoiding legal disputes and reputational damage. This applies to both Borussia Dortmund’s own channels and its cooperation with content creators. Borussia Dortmund selects these collaborators in accordance with internally-defined criteria before entering into a contractual relationship with them. The Bundesliga licensing conditions stipulate that all Bundesliga clubs must field an eFootball team to play in the Virtual Bundesliga, which has been one of Bundesliga GmbH’s official competitions since 2022. This underscores the growing significance of eFootball. However, this also results in certain dependencies on external platforms and service providers, which could limit the Company’s own options and influence. In the 2025/2026 season, Borussia Dortmund revised its gaming strategy and made the decision to expand its scope and also operate under the name “BVB Gaming” in order to tap into new formats, games and target audiences. Nevertheless, there is also a risk that this pivot will not resonate with fans. In order to safeguard the Company’s image and prevent the unauthorised disclosure of internal information, all Borussia Dortmund employees must adhere to the Company’s social media guidelines.

More stringent legal regulations continue to be classified as a high-priority risk due to the plethora of new rules and regulations. The provisions of the EU Corporate Sustainability Reporting Directive (CSRD), the new legal provisions pertaining to money laundering, and stricter criminal sanctions law continue to be but a few examples. The European Commission’s omnibus package, which was published in February 2025 and essentially provides for a simplification of the aforementioned CSRD requirements, is expected to be transposed into German law in the second half of 2026. Since Borussia Dortmund prepared its first sustainability statement in accordance with the European Sustainability Reporting Standards (ESRS) in financial year 2024/2025, the transposition of the CSRD into German law is not currently expected to require any material adjustments to Borussia Dortmund’s reporting process. The EU Regulation on prohibiting products made with forced labour, which will enter into force in mid-December 2027, will remain unaffected by this. Compliance with the new German Money Laundering Act (Geldwäshegesetz, “GwG”) will be mandatory for Borussia Dortmund from 2027 and must be implemented by 2029, for which Borussia Dortmund is also making thorough preparations. In general, such tightening of laws and regulations usually involves a significantly higher administrative workload for Borussia Dortmund, which ties up human resources and may necessitate new hires. Where necessary, greater use is also made of advisory services.

The risk arising from political developments also continues to be classified as high priority. As in the previous years, geopolitical conflicts continue to shape global politics. While the war in Ukraine continues to have an impact on the overall economic situation in Germany, where consumers initially saw their purchasing power diminish in the face of rising commodity, energy and food prices and consequently higher inflation as a result of the conflict, those effects are no longer being felt as acutely as they were at the beginning of the war, despite the fact that there is no end in sight to the bloodshed. Petrol prices have risk dramatically due to the ongoing Iran war and the repeated, temporary blockades of the Strait of Hormuz, through which significant portions of the world’s oil are transported. While fears of a deeper and long-lasting recession are not currently materialising, this would become reality if the respective wars escalate further. In addition to the ongoing physical conflicts and wars, the protectionist and unpredictable tariff policy being pursued by the United States under President Donald Trump also threatens to trigger global trade wars that could paralyse the global, European and/or German economies, even though the EU and the United States have in principle agreed to a comprehensive tariff deal. In June 2026, the European Central Bank (ECB) decided to raise its key interest rates by 25 basis points; the deposit facility rose from 2.00% to 2.25%. The ECB continues to pursue its long-term target of an inflation rate of 2%. A close eye is also being kept on the fraught relations between China and Taiwan and the potential consequences for the global economy and supply chains, with the hope being that the situation does not escalate militarily.

Category 4 – competitive risk

Competitive risk relates to factors stemming from competition in the domestic and international professional football business.

This category includes six high priority risks:

The first risk classified as high-priority in this category is the change in income from TV marketing. Bundesliga GmbH once again surpassed the billion-euro mark in awarding the German-language media rights for the 2025/2026 to 2028/2029 seasons, marking a continuation of the high income level seen in recent years. Bundesliga GmbH has secured proceeds of on average EUR 1.12 billion per season for the 2025/2026 to 2028/2029 media rights cycle. This corresponds to total proceeds of EUR 4.48 billion and an increase of around 2% on the previous cycle. While this respectable figure generally provides a solid planning basis, the international marketing of the Bundesliga in particular continues to fall short of the ambitious expectations, especially in comparison to the English Premier League. Piracy (i.e., the illegal, unlicensed viewing and distribution of live pay-TV broadcasts or streaming content of football matches) can, in principle, adversely affect the revenue of pay-TV networks, football associations and football clubs.

UEFA’s Financial Fair Play Regulations, which were introduced in 2011 with the aim of improving the financial health of European football, were fundamentally revised in 2022. The reforms introduced under the Financial Sustainability Regulations were aimed at making European football more resilient to external shocks, promote sensible investments and make football more sustainable in general. At the core of the new regulations were three pillars: cost control, stability and solvency. Based on the “squad cost controls”, clubs may in principle only spend a specific percentage of their income on squad costs, including transfers and agent fees. In addition, the clubs’ solvency is audited four times per year – one by national license inspectors and three by financial experts from UEFA. Potential penalties extend beyond financial sanctions and may involve forfeiting points, incurring transfer bans and being disqualified from tournaments. The risk of failing to comply with the Financial Sustainability Regulations and potential exclusion from international competitions or potential financial sanctions would have serious financial consequences for Borussia Dortmund. The very lucrative distributions available from UEFA and the international prestige derived from taking part in UEFA competitions underscore the immense importance of both qualifying and obtaining the requisite licences for international club competitions. The potential income set to be gained have increased further with the added number of matches stemming from the reforms of UEFA’s competitions that were introduced in the 2024/2025 season, specifically the UEFA Champions League. Therefore, to minimise this risk, compliance with the relevant requirements and target/actual comparisons are constantly reviewed.

As past experience has demonstrated, the risk of key players switching clubs can materialise at any time at Borussia Dortmund. The departure of key players who are part of the club’s future plans would not only weaken the team at certain positions, but also as a whole. Even if success rarely rests on the shoulders of any single player, the roster should be planned so that any unexpected departures do not leave holes that would need to be filled at short notice with players of equal quality. In an attempt to mitigate the sporting consequences of key players switching clubs, Borussia Dortmund plans its roster well in advance, including by binding players to long-term contracts and identifying potential replacements, uses its high transfer proceeds to reinvest in the squad and employs a wide network of scouts. This is why Borussia Dortmund strives to avoid key players switching clubs on free transfers wherever possible.

The further risk in this category is the risk of a potential stadium catastrophe. Going forward, the Company – in concert with the German Red Cross, fan services, the legal department and the match operations and stadium security department – will continue to regularly assess the quality and reliability of security staff and specifically train them in the prevention of catastrophes. Structural improvements to SIGNAL IDUNA PARK for the purposes of enhancing security, safeguarding and monitoring the access roads, additional security precautions (specifically rooftop surveillance) in the wake of the stadium climbing incident committed by a member of the “rooftopping scene” (illegal ascent of high buildings) at the UEFA EURO round of 16 match in June 2024 in Dortmund, and safeguarding the property during visits on non-match days are just some of the countermeasures currently taken by Borussia Dortmund to provide security at the stadium. In December 2023, the third-division match between Borussia Dortmund II and Preußen Münster was called off after a suspicious object was discovered in the away team block in the “Rote Erde” stadium. This incident underscores the club’s close working relationship with the police that is built on trust and the combined efforts to prevent any potential catastrophes.

Borussia Dortmund in particular uses the summer break each year to invest in SIGNAL IDUNA PARK as well as for construction work and refurbishments. The stadium has been expanded three times since opening in 1974 with a capacity of 54,000. The continual repair and maintenance work – the paramount focus of which is always structural integrity and safety – ensures that the stadium meets the constantly evolving standards in terms of safety, security and comfort. Compared to many other Bundesliga stadiums that were constructed for the 2006 World Cup, SIGNAL IDUNA PARK is one of the Bundesliga’s oldest stadiums in use. Given that Borussia Dortmund regularly invests large sums in SIGNAL IDUNA PARK and in light of the increasing requirements applicable to stadiums, including with respect to spectator safety, the club has classified capital expenditures needed for SIGNAL IDUNA PARK as a high-priority risk. Given the advanced age of SIGNAL IDUNA PARK, Borussia Dortmund makes regular investments in the stadium. In addition to contributing to the aforementioned paramount focus on the structural integrity of the stadium (the plans for financial year 2026/2027 include, for example, the replacement of fire doors, the renovation of toilets, work to renew the concrete surfaces of the south façade and the maintenance of sprinkler systems), these investments are intended to keep Borussia Dortmund competitive and contribute to its environmental sustainability. The current investments in SIGNAL IDUNA PARK that extend beyond purely maintenance purposes serve in particular to promote environmental sustainability. In this context, particular mention should be made of the installation of the solar panels on the roof of the SIGNAL IDUNA PARK stadium, which was completed in the 2025/2026 financial year and, in addition to promoting environmental sustainability, will contribute to more efficient energy generation, as well as the implementation of further decarbonisation measures as part of the decarbonisation strategy. For the 2026/2027 season, Borussia Dortmund is investing in particular in its “Borussia Park” hospitality area, with a view to modernising it and making it more appealing. Other projects include the construction of various new counters at SIGNAL IDUNA PARK, the expansion of CCTV coverage, and the installation of ventilation systems on the stadium’s west side. In the past, steps were taken to digitalise and modernise the stadium (e.g., building a logistics centre to provide greater flexibility and improve the logistics of supplying food and beverages to SIGNAL IDUNA PARK on match days and providing 5G coverage throughout the stadium).

The risk of consequential damage arising from mining, which affects not only SIGNAL IDUNA PARK in particular, but also all of Borussia Dortmund’s other properties, represents another high-priority risk. Coal mining has ceased in Germany. While the memories remain, so do the pitfalls, because the effects of mining never fully disappear. Hardly any other federal state is faced with as many sinkholes as North Rhine-Westphalia. It is estimated that the state has some 60,000 abandoned mining shafts and tunnels. The exact number is not known because mining in the region dates back to the Middle Ages. Only half of all pits and tunnels have been recorded. Borussia Dortmund uses the properties adjacent to SIGNAL IDUNA PARK for car parks or to store products and equipment needed for match operations. The training ground in Dortmund-Brackel is being constantly expanded (in particular the areas and facilities dedicated to women’s football and the BVB Health World). During a previous renovation of the Rote Erde stadium, construction workers had to fill coal shafts with concrete, which has caused the soil structure to become porous in recent years. This lengthy process had drawn out the renovation work. There is always the risk of consequential damage arising from mining whenever there is any construction work on Borussia Dortmund’s property. All construction projects must still first undergo a survey of the potential for consequential mining damage and are subject to financial and timing risks. In addition to the aforementioned risk of consequential damage arising from mining, unexploded ordnance from World War II can also lead to unforeseen planning changes as described above.

Category 5 – liquidity risk

Liquidity risks include all risks in connection with cash flows and financial burdens.

This category includes four high-priority risks:

The loss of significant financial backers and sponsors could continue to have a material adverse effect on Borussia Dortmund’s liquidity in the future. Borussia Dortmund continuously revises its longstanding accounts receivable management system in line with the prevailing conditions and increasing globalisation. Despite the anaemic economy in the eurozone and the rather sluggish global economy, there is currently nothing to indicate the loss of a significant financial backer/sponsor connected with Borussia Dortmund. Borussia Dortmund is in close contact with its key partners and its marketing firm SPORTFIVE Germany GmbH, with which it maintains a close relationship built on trust. Borussia Dortmund entered into new strong partnerships thanks to its new, innovative model for its primary sponsors, under which Vodafone is the sponsor for the primary kit and REWE sponsors the training kit. Borussia Dortmund has entered into long-term contracts with its strategic partners (Vodafone Group until 2030, PUMA International Sports Marketing B.V. until 2034, and SIGNAL IDUNA Group until 2031). Various new sponsorship contracts and contract extensions, and the fact that income from advertising increased once again year on year, tentatively suggest that the relatively tense economic situation has not significantly diminished the willingness of existing and prospective partners to enter into sponsorship arrangements. Borussia Dortmund attempts to avoid any clustering of risks with regard to the industries its sponsors operate in. This ensures a broad mix of sponsorship income that is essentially not subject to any increased industry risks.

The risk of bad debts due to insolvency or failure to honour financial obligations remains classified as a high-priority risk. The global economy, which remains rather sluggish (in particular in light of the simmering trade and tariff conflicts around the world), will continue to impact the solvency of companies and football clubs alike. Borussia Dortmund anticipates that problems could arise with regard to trade receivables. As part of its ongoing internationalisation, Borussia Dortmund is increasingly taking on foreign receivables and, in particular, receivables from Asia, which experience has shown to be subject to a higher default risk. The primary objective continues to be keeping bad debts to a minimum and to ensure that the Company has the liquidity it needs at all times. That is why it is all the more important to follow through on the action already taken, such as conducting credit checks on foreign businesses or changing the general contractual framework to include high up-front payments. Dunning procedures are likewise particularly vital. Similarly, Borussia Dortmund, its contractual partners and its marketing firm SPORTFIVE Germany GmbH remain in close contact with respect to receivables for advertising income. In addition to the measures already referred to, factoring arrangements for transfer receivables are also used as a means of managing liquidity.

Borussia Dortmund places utmost importance on maintaining its liquidity and, after assessing its risks, therefore continues to classify the risk associated with this as high priority. The short- and long-term financial and liquidity planning apparatus that has been in place for many years considers a variety of scenarios and different premises, and is regularly adjusted to account for current conditions. The scenarios calculated covered in particular different levels of success achieved by the team and various external conditions in order to identify any liquidity bottlenecks early and to initiate appropriate countermeasures designed to secure liquidity, such as factoring arrangements for transfer receivables. Furthermore, an overdraft facility of EUR 75,000 thousand was available at the end of the reporting period that will also be available for the upcoming financial year. Furthermore, Borussia Dortmund’s long-term investments in property, plant and equipment are financed with long-term loans.

In order to keep the risk associated with the volume of player salaries as low as possible, the club budgets personnel expenses with transfer deals in mind at the beginning of each season. The primary focus is on the fixed components of the players’ remuneration, since these are independent of the team’s performance during a given season. Variable remuneration components are also considered when planning the budget, but are generally only relevant once certain sporting objectives are achieved that in turn generate additional income or, for instance, are linked to a specific number of appearances/minutes for players. The personnel expenses incurred are continuously monitored, extrapolated on the basis of current circumstances, and reported to the management. Action has already been taken to increase the variability of personnel expenses in the professional squad with regard to sporting performance (particularly in the UEFA competitions/qualifying for these competitions) and the associated effects on earnings and liquidity and now extend to nearly all salary components so as to cushion any potential shortfalls by reducing personnel expenses. Borussia Dortmund is constantly looking into what further adjustments it can make. For instance, all new contracts since the 2025/2026 season apply a graduated scale to the UEFA competitions that reduce/increase the salary components accordingly However, no matter what efforts are undertaken to increase variability, it must be borne in mind that, given the overall situation on the transfer market, it will not always be possible for Borussia Dortmund to have its maximum demands met without having to compromise on the quality of the player base.

Category 6 – ecological risk

Physical environmental risks are classified as a high-priority ecological risk.

The consequences of global warming are complex. Global warming affects the climate, nature, society, and thus also the economic activities of companies in different ways. Nature-related physical risks due to climate change are a direct consequence of an organisation’s dependence on nature. Physical risks arise when natural systems are affected by the effects of climate events (e.g., extreme weather events), geological events (e.g., earthquakes), or changes in the balance of ecosystems. They are usually location-specific. For Borussia Dortmund and its local sites, acute climate events, such as extreme weather events in the form of torrential rain, pose a particular threat to match and training operations. Just recently in the summer of 2024, a match during the European Championships was interrupted due to torrential rain. Scientific studies reveal that extreme weather events will increase in the future. Conversely, this means that the risk of match suspensions or interruptions and damage to Borussia Dortmund’s properties will increase, and changes in precipitation patterns (rain, hail, snow) are to be expected. However, extreme weather is more than just changes in precipitation. It can be assumed that climate change will also lead to chronic temperature changes, such as heat and drought, in Dortmund during the summer months. The number of hot days and “tropical nights” has already risen in recent years. In inner-city areas with high population and building density, average temperatures are even higher than in the less densely populated and undeveloped surrounding areas. In this context, potential environmental risks, such as droughts and associated water shortages, are increasing in significance for Borussia Dortmund, both in terms of the management of SIGNAL IDUNA PARK and the irrigation of the pitches. At the same time, heat stress can restrict match operations, impacting both spectators and team training sessions. In light of the political requirements for the coming years, the pace of technological advancements and adaptation, and the uncertainty surrounding potential climate tipping points, it is difficult to assess the actual impact of physical climate risks. The many steps Borussia Dortmund is taking include, but are not limited to, investments in the structural infrastructure of SIGNAL IDUNA PARK, the development of a climate resilience analysis and the formulation of an environmental, recycling, and water/wastewater strategy.

The Group is not presently exposed to any high priority risks in the interest rate risk, credit risk and resources risk categories.