Borussia Dortmund draws up rescue plan

18th February 2005, Comments 0 comments

18 February 2005, DUSSELDORF - Molsiris, the company that runs Borussia Dortmund's Westfalen stadium, said on Friday that it is not blocking any deal to help stop the financially troubled Bundesliga club from going under. Dortmund, Germany's only publicly-listed football club, warned in a statement on Thursday that it was in an "existence-threatening earnings and financial situation". A proposed rescue package for the club can only be implemented with the approval of Dortmund's financial backers and the cl

18 February 2005

DUSSELDORF - Molsiris, the company that runs Borussia Dortmund's Westfalen stadium, said on Friday that it is not blocking any deal to help stop the financially troubled Bundesliga club from going under.

Dortmund, Germany's only publicly-listed football club, warned in a statement on Thursday that it was in an "existence-threatening earnings and financial situation".

A proposed rescue package for the club can only be implemented with the approval of Dortmund's financial backers and the club says there are three parties who have yet to give their approval.

"We are not one of the three backers, with whom agreement has yet to be reached," said Karolina Mueller, a spokesperson for Molsiris's mother company, CommerzbankLeasing Immobilien AG.

Dortmund sold the Westfalen stadium two years ago and is leasing it back at a cost of EUR 15 million per year. The contract with Molsiris sees Dortmund taking back ownership of the stadium in 2017. The club has yet to pay its rent for 2005.

In fiscal 2004, Borussia Dortmund lost EUR 67.7 million. The club's financing was thrown off balance by a downturn in the team's fortunes on the field, including an early elimination from the lucrative Champions League competition.

DPA

Subject: German news

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