In the attach images will find Balance Sheet reclassified for Real Madrid and Borussia attach images. In addition annual report 2018/2019 of the two clubs. These documents are useful to gather additional information about the two clubs.

Required:

1.Provide a comment on the financial performance of Real Madrid in the last two years in terms of revenues, operating profit, EBIT, level of debt. In answering your question, link figures to episodes/actions described in the annual report or any other source you will use.

2.Provide a comment on the financial performance of Borussia Dortmund in the last two years in terms of revenues, operating profit, EBIT, level of debt. In answering your question, link figures to episodes/actions described in the annual report or any other source you will use.

3.Looking at your analysis in points 1 and 2, highlight the main differences in the business model and in the performance of the two clubs.

REAL MADRID: RECLASSIFIED P&L k 2019 % % Matchday revenues Broadcasting rights Commercial and other revenues TOTAL REVENUES 286.965 172.991 297.119 757.075 37,9% 22.8% 39,2% 100,0% 2018 274.426 178.413 296.907 749.746 36,6% 23,8% 39,6% 100,0% Purchases of goods and services VALUE ADDED (238.869 518.206 -31,6% 68,4% (226.991 522.755 -30,3% 69,7% (394.221 123.985 -52,1% 16,4% (430.751 92.004 -57,5% 12,3% Personnel costs EBITDA (Adjusted) Depreciation and Amortization OPERATING PROFIT (122.061 1.924 - 16,1% 0,3% (102.415 (10.411 ) - 13,7% -1,4% Players trading Nonrecurring revenues and expenses EBIT 98.548 (46.186 54.286 13,0% -6,1% 54.209 1.000 44.798 7,2% 0,1% 7,2% 6,0% Financial income Financial expenses Income (Loss) before taxes Taxes Net Income (Loss) 795 (1.599 53.482 0,1% -0,2% 7,1% 1.004 (2.819 42.983 0,1% -0,4% 5,7% (15.088 38.394 -2,0% 5,1% (11.809 31.174 -1,6% 4,2% REAL MADRID: RECLASSIFIED BALANCE SHEET (LIQUIDITY METHOD) ke ASSETS 2019 % 2018 % EQUITY AND LIABIITIES % % 2019 2018 46,8% 43,1% NONCURRENT ASSETS Players registration rights Other intangible assets Land and buildings Other tangible assets Financial assets Other long term assets 725.786 310.913 4.042 277.933 83.962 29.769 19.167 63,8% 27,3% 0,4% 24,4% 7,4% 2,6% 1,7% 734.557 316.787 7.479 271.064 82. 071 20.301 36.855 67,5% 29,1% 0,7% 24,9% 7,5% 1,9% 3.491 SHAREHOLDERS' EQUITY Share Capital Reserves Income/loss for the year 532.756 490.086 4.276 38.394 494.506 458.912 4.420 31.174 45,4% 42,1% 0,4% 2,9% 3,4% NON CURRENT LIABILITIES Provisions for risks and charges Bonds and other financial liabilities Tax liabilities Other long term liabilities 132.868 14.293 49.693 19.390 49.492 11,7% 1,3% 4.4% 133.731 23.906 49.793 16.230 43.802 12,3% 2.2% 4.8% 1,5% 4,09 36,2% 1.79 7.4% 4,39 CURRENT ASSETS Trade receivables Inventories Other short term assets and receivables Short term financial assets Cash and cash equivalents Assets held for sale 412.597 84.759 5.570 83.688 3.881 155.706 78.993 354.468 98.976 3.671 61.712 32,5% % 9,1% 0,3% 5.7% 0,5% 7,4% 0,3% 13,7% 8,9% 472.759 94 41,5% 0,0% 460.788 10.151 42,3% 0,9% 190. 109 17,5% CURRENT LIABILITIES Bonds and other financial liabilities Tax liabilities Trade payables Other short term liabilities and payables 83.477 389.188 7,3% 34,2% 86.297 364.340 7.9% 33,5% TOTAL ASSETS 1.138.383 100,0% 1.089.025 100,0% TOTAL EQUITY AND LIABILITIES 1.138.383 100% 1.089.025 100% Players' registration: Gross book value Accumulated amortization Net book value 603.894 (292.991) 310.903 858.474 (541.687) 316.787 REAL MADRID: RECLASSIFIED BALANCE SHEET (ACTIVITY-RELATED METHOD) Trade receivables Inventories Other short term assets and receivables Trade payables Other short term liabilities and payables NOWC 2019 84.759 5.570 83.688 83.477 389.188 298.648 - 2018 98.976 3.671 61.712 86.297 364.340 286.278 FIXED ASSETS 804.779 734.557 ST tax liabilities LT tax liabilities Provisions for risks and charges Other long term liabilities 19.390 14.293 49.492 16.230 23.906 43.802 NET ASSETS 422.956 364.341 ST financial liabilities LT financial liabilities Cash and cash equivalents NFP 94 49.693 159.587 109.800 10.151 49.793 190.109 130.165 EQUITY 532.756 494.506 NFP + EQUITY 422.956 364.341 BORUSSIA DORTMUND: RECLASSIFIED P&L k % Matchday revenues Broadcasting rights Commercial and other revenues TOTAL REVENUES 2019 44.659 167.349 174.311 386.319 % 11,6% 43,3% 45,1% 100,0% 2018 42.322 122.293 152.587 317.202 (118.933 198.269 13,3% 38,6% 48,1% 100,0% Purchases of goods and services VALUE ADDED -36,7% 63,3% -37,5% 62,5% (141.834 244.485 (205. 104 39.381 (92.482 (53.101 -53,1% 10,2% (186.715 ) 11.554 Personnel costs EBITDA (Adjusted) Depreciation and Amortization OPERATING PROFIT Players trading Nonrecurring revenues and expenses | EBIT -58,9% 3,6% -23,9% -13,7% (90.556 (79.002 -28,5% -24,9% 76.592 19,8% 115.076 36,3% 23.491 6,1% 36.074 11,4% Financial income Financial expenses Income/(Loss) before taxes Taxes Net Income/(Loss) 450 (2.132 21.809 0,1% -0,6% 5,6% 565 (4.888 31.751 0.2% -1,5% 10,0% (4.418 17.391 -1,1% 4,5% (3.289 28.462 -1,0% 9,0% BORUSSIA DORTMUND: RECLASSIFIED BALANCE SHEET (LIQUIDITY METHOD) ASSETS 2018 EQUITY AND LIABITES 2019 % 2019 % 2018 354.919 92.000 262.919 71,0% 18,4% %. 52,0% 336.304 92.000 244,304 70,39 19,2% 51,1% NONCURRENT ASSETS Players registration rjghts Other intangible assets Land and buildings Other tangible assets Financial assets Other long term assets 371.715 161.412 2.298 156.013 27.988 374 23.630 74,3% 32,3% 0,5% 31.2% 5,8% 0,1% 4,7% 341.926 108.783 901 158.897 21.796 380 51.169 17.085 3.4% 23.001 4,8% 15.585 3,1% 9.276 1,9% 71,5% SHAREHOLDERS' EQUITY Share Capital 22.7% Reserves 0,2% Income/loss for the year 33,2% 4,6% NONCURRENT LIABILITIES 0,1% Provisions for risks and charges 10,79 Bonds and other financial liabilities Tax liabilities 28,5% Other long term liabilities 4,39 1,2% CURRENT LIABILITIES % 3,77 Bonds and other financial liabilities 0.5% Tax liabilities 12.4% Trade payables 6,5% Other short term liabilities and payables 1.500 0,3% 13.725 2.9% CURRENT ASSETS Trade receivables Inventories Other short term assets and receivables Short term financial assets Cash and cash equivalents Assets held for sale 128.356 29.041 4.569 15. 026 2.821 55.865 21.034 25,7% 5,8% 0,9% 3,0% 0,6% 11.2% 4,2% 136.405 20.461 5.588 17.500 2320 59.464 31.072 128.067 36.782 3.490 60.650 27.145 25,6% 7,4% 0,79 12,1% 5,4% 119.026 36.628 1.962 54.597 25.839 24.9% 7,7% 0,4% 11,4% 5,4% TOTAL ASSETS 500.071 100.0% 478.331 100,0% 100,0% TOTAL EQUITY AND LIABILITIES 500.071 100% 478.331 100% Players' registration: Gross book value Accumulated amortization Net book value 276.508 (115.096) 161.412 185.305 (76.522) 108.783 BORUSSIA DORTMUND: RECLASSIFIED BALANCE SHEET (ACTIVITY-RELATED METHOD) Trade receivables Inventories Other short term assets and receivables Trade payables Other short term liabilities and payables NOWC 2019 29.041 4.569 15.026 60.650 27.145 39.159 - 2018 20.461 5.588 17.500 54.597 25.839 36.887 FIXED ASSETS 392.749 372.998 3.490 1.962 ST tax liabilities LT tax liabilities Provisions for risks and charges Other long term liabilities 1.500 13.725 NET ASSETS 348.600 320.424 ST financial liabilities LT financial liabilities Cash and cash equivalents NFP 36.782 15.585 58.686 6.319 36.628 9.276 61.784 15.880 EQUITY 354.919 336.304 NFP + EQUITY 348.600 320.424 REAL MADRID: RECLASSIFIED P&L k 2019 % % Matchday revenues Broadcasting rights Commercial and other revenues TOTAL REVENUES 286.965 172.991 297.119 757.075 37,9% 22.8% 39,2% 100,0% 2018 274.426 178.413 296.907 749.746 36,6% 23,8% 39,6% 100,0% Purchases of goods and services VALUE ADDED (238.869 518.206 -31,6% 68,4% (226.991 522.755 -30,3% 69,7% (394.221 123.985 -52,1% 16,4% (430.751 92.004 -57,5% 12,3% Personnel costs EBITDA (Adjusted) Depreciation and Amortization OPERATING PROFIT (122.061 1.924 - 16,1% 0,3% (102.415 (10.411 ) - 13,7% -1,4% Players trading Nonrecurring revenues and expenses EBIT 98.548 (46.186 54.286 13,0% -6,1% 54.209 1.000 44.798 7,2% 0,1% 7,2% 6,0% Financial income Financial expenses Income (Loss) before taxes Taxes Net Income (Loss) 795 (1.599 53.482 0,1% -0,2% 7,1% 1.004 (2.819 42.983 0,1% -0,4% 5,7% (15.088 38.394 -2,0% 5,1% (11.809 31.174 -1,6% 4,2% REAL MADRID: RECLASSIFIED BALANCE SHEET (LIQUIDITY METHOD) ke ASSETS 2019 % 2018 % EQUITY AND LIABIITIES % % 2019 2018 46,8% 43,1% NONCURRENT ASSETS Players registration rights Other intangible assets Land and buildings Other tangible assets Financial assets Other long term assets 725.786 310.913 4.042 277.933 83.962 29.769 19.167 63,8% 27,3% 0,4% 24,4% 7,4% 2,6% 1,7% 734.557 316.787 7.479 271.064 82. 071 20.301 36.855 67,5% 29,1% 0,7% 24,9% 7,5% 1,9% 3.491 SHAREHOLDERS' EQUITY Share Capital Reserves Income/loss for the year 532.756 490.086 4.276 38.394 494.506 458.912 4.420 31.174 45,4% 42,1% 0,4% 2,9% 3,4% NON CURRENT LIABILITIES Provisions for risks and charges Bonds and other financial liabilities Tax liabilities Other long term liabilities 132.868 14.293 49.693 19.390 49.492 11,7% 1,3% 4.4% 133.731 23.906 49.793 16.230 43.802 12,3% 2.2% 4.8% 1,5% 4,09 36,2% 1.79 7.4% 4,39 CURRENT ASSETS Trade receivables Inventories Other short term assets and receivables Short term financial assets Cash and cash equivalents Assets held for sale 412.597 84.759 5.570 83.688 3.881 155.706 78.993 354.468 98.976 3.671 61.712 32,5% % 9,1% 0,3% 5.7% 0,5% 7,4% 0,3% 13,7% 8,9% 472.759 94 41,5% 0,0% 460.788 10.151 42,3% 0,9% 190. 109 17,5% CURRENT LIABILITIES Bonds and other financial liabilities Tax liabilities Trade payables Other short term liabilities and payables 83.477 389.188 7,3% 34,2% 86.297 364.340 7.9% 33,5% TOTAL ASSETS 1.138.383 100,0% 1.089.025 100,0% TOTAL EQUITY AND LIABILITIES 1.138.383 100% 1.089.025 100% Players' registration: Gross book value Accumulated amortization Net book value 603.894 (292.991) 310.903 858.474 (541.687) 316.787 REAL MADRID: RECLASSIFIED BALANCE SHEET (ACTIVITY-RELATED METHOD) Trade receivables Inventories Other short term assets and receivables Trade payables Other short term liabilities and payables NOWC 2019 84.759 5.570 83.688 83.477 389.188 298.648 - 2018 98.976 3.671 61.712 86.297 364.340 286.278 FIXED ASSETS 804.779 734.557 ST tax liabilities LT tax liabilities Provisions for risks and charges Other long term liabilities 19.390 14.293 49.492 16.230 23.906 43.802 NET ASSETS 422.956 364.341 ST financial liabilities LT financial liabilities Cash and cash equivalents NFP 94 49.693 159.587 109.800 10.151 49.793 190.109 130.165 EQUITY 532.756 494.506 NFP + EQUITY 422.956 364.341 BORUSSIA DORTMUND: RECLASSIFIED P&L k % Matchday revenues Broadcasting rights Commercial and other revenues TOTAL REVENUES 2019 44.659 167.349 174.311 386.319 % 11,6% 43,3% 45,1% 100,0% 2018 42.322 122.293 152.587 317.202 (118.933 198.269 13,3% 38,6% 48,1% 100,0% Purchases of goods and services VALUE ADDED -36,7% 63,3% -37,5% 62,5% (141.834 244.485 (205. 104 39.381 (92.482 (53.101 -53,1% 10,2% (186.715 ) 11.554 Personnel costs EBITDA (Adjusted) Depreciation and Amortization OPERATING PROFIT Players trading Nonrecurring revenues and expenses | EBIT -58,9% 3,6% -23,9% -13,7% (90.556 (79.002 -28,5% -24,9% 76.592 19,8% 115.076 36,3% 23.491 6,1% 36.074 11,4% Financial income Financial expenses Income/(Loss) before taxes Taxes Net Income/(Loss) 450 (2.132 21.809 0,1% -0,6% 5,6% 565 (4.888 31.751 0.2% -1,5% 10,0% (4.418 17.391 -1,1% 4,5% (3.289 28.462 -1,0% 9,0% BORUSSIA DORTMUND: RECLASSIFIED BALANCE SHEET (LIQUIDITY METHOD) ASSETS 2018 EQUITY AND LIABITES 2019 % 2019 % 2018 354.919 92.000 262.919 71,0% 18,4% %. 52,0% 336.304 92.000 244,304 70,39 19,2% 51,1% NONCURRENT ASSETS Players registration rjghts Other intangible assets Land and buildings Other tangible assets Financial assets Other long term assets 371.715 161.412 2.298 156.013 27.988 374 23.630 74,3% 32,3% 0,5% 31.2% 5,8% 0,1% 4,7% 341.926 108.783 901 158.897 21.796 380 51.169 17.085 3.4% 23.001 4,8% 15.585 3,1% 9.276 1,9% 71,5% SHAREHOLDERS' EQUITY Share Capital 22.7% Reserves 0,2% Income/loss for the year 33,2% 4,6% NONCURRENT LIABILITIES 0,1% Provisions for risks and charges 10,79 Bonds and other financial liabilities Tax liabilities 28,5% Other long term liabilities 4,39 1,2% CURRENT LIABILITIES % 3,77 Bonds and other financial liabilities 0.5% Tax liabilities 12.4% Trade payables 6,5% Other short term liabilities and payables 1.500 0,3% 13.725 2.9% CURRENT ASSETS Trade receivables Inventories Other short term assets and receivables Short term financial assets Cash and cash equivalents Assets held for sale 128.356 29.041 4.569 15. 026 2.821 55.865 21.034 25,7% 5,8% 0,9% 3,0% 0,6% 11.2% 4,2% 136.405 20.461 5.588 17.500 2320 59.464 31.072 128.067 36.782 3.490 60.650 27.145 25,6% 7,4% 0,79 12,1% 5,4% 119.026 36.628 1.962 54.597 25.839 24.9% 7,7% 0,4% 11,4% 5,4% TOTAL ASSETS 500.071 100.0% 478.331 100,0% 100,0% TOTAL EQUITY AND LIABILITIES 500.071 100% 478.331 100% Players' registration: Gross book value Accumulated amortization Net book value 276.508 (115.096) 161.412 185.305 (76.522) 108.783 BORUSSIA DORTMUND: RECLASSIFIED BALANCE SHEET (ACTIVITY-RELATED METHOD) Trade receivables Inventories Other short term assets and receivables Trade payables Other short term liabilities and payables NOWC 2019 29.041 4.569 15.026 60.650 27.145 39.159 - 2018 20.461 5.588 17.500 54.597 25.839 36.887 FIXED ASSETS 392.749 372.998 3.490 1.962 ST tax liabilities LT tax liabilities Provisions for risks and charges Other long term liabilities 1.500 13.725 NET ASSETS 348.600 320.424 ST financial liabilities LT financial liabilities Cash and cash equivalents NFP 36.782 15.585 58.686 6.319 36.628 9.276 61.784 15.880 EQUITY 354.919 336.304 NFP + EQUITY 348.600 320.424