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Borussia Dortmund Incorporated announces its collaboration with marketing partner SPORTFIVE Incorporated of Hamburg has been extended through the year 2020. Under the contract, SPORTFIVE will continue to carry out the marketing of certain sponsoring and media rights on behalf of Borussia Dortmund and will earn a commission or respectively a participation in such revenues.
Borussia Dortmund will receive a firm eight-figure sum as compensation from SPORTFIVE. Thomas Tress, Marketing Director of Borussia Dortmund says, "We are happy to continue and make long-term the successful and trustworthy marketing alliance between Borussia Dortmund and SPORTFIVE."
Richard Worth (SPORTFIVE Chief Executive Officer): "BVB is one of the leading brands in German football and an important part of our portfolio. This traditional club has the second largest average spectator count in Europe. That is a signal of the immense drawing power of this club. We are happy with this early extension with our long-time partner Borussia Dortmund and we intend to bring numerous new national and international sponsors to the club.
Borussia Dortmund will use the SPORTFIVE compensation to eliminate a series of financial obligations. Credit contracts with a German Real Estate bank and the deal closed on June 6, 2006 with Morgan Stanley International Bank Limited, London will be paid in full by June 30, 2008. Therefore, the debt which was originally €79.2 million and taken to re-purchase the stadium, will be paid in full. Morgan Stanley has indicated it will remain connected to Borussia Dortmund as a major stockholder.
Hans-Joachim Watzke, Borussia Dortmund Managing Director, explained: "Roughly three years after almost going bankrupt, we will now, as of June 30, 2008, only have a debt of €69.1 million from the original stadium deal. If you take into account the money we have already paid off in the current financial year, we will be able to pay off debts to a total amount of €59.8 million this year alone. For Borussia Dortmund´s operational sector it means we are free of debt and will be well-prepared financially for the next few years."
Translated by Chris Schuepp and Keith Richardson