Finances 2004

2004 was an extremely positive year for the company. Regarding the football team the positive development continued from 2003. The season started off with a major challenge against FC Barcelona in the European Cup.

After a rather disappointing spring, the team won silver medals in the Danish SAS League. However, the positive development continued after the summer holiday, where the Brøndby play-ers showed entertaining and offensive football and at the same time managed to take a leading position with 10 points ahead of number two in the Danish SAS league.

Positive financial development

The financial development is still positive in the sense that the company is presenting a result of DDK 25.6 million before tax. In this connection it must be emphasized that the company continues to choose not to let the pending case between Brøndby IF and Vfl Wolfsburg have any impact on this year's result. However, Brøndby IF expects that CAS will side with them regarding the claim for transfer payment from Vfl Wolfsburg for the football player Peter Madsen, although the case is not expected to be settled before spring 2005, as it is being heard at the sports court CAS in Lausanne in March/April 2005.

With regard to the football play there was a tremendous distinction between the matches in the spring and in the autumn. The team did not succeed in achieving continuity and stability in their play in the spring, which left them with silver medals in the 2003/2004 season.

However, in the new 2004/2005 season the players have shown considerable impressive stability, entertaining football and not least managed to occupy the leading place in the SAS League with a remarkable distance to the closest competitors.

Financial highlights

In this connection it is of great importance to emphasize that the players have been trained under Michael Laudrup's guidance. They have shown both entertaining and offensive football, which is also reflected in the positive development in the number of spectators at Brøndby Stadium. Regarding a number of important operating areas, the company has experienced a highly positive development such as:

• For the home matches in the Danish SAS League during the spring season, the average number of spectators was 19.290 in 2004 compared with 17.614 in 2003 and 15.428 in 2002. The corresponding figures for the 2004 autumn season were 15.912 compared with 16.290 in 2003 and 12.173 in 2002.
  
  
• The total number of spectators at 16 Danish SAS League matches, 2 European Cup matches and 2 Royal League matches was 348.035 at Brøndby Stadium corresponding to an average of 16.573 spectators per match.
  
  
• Gate receipts and TV revenues decreased by 11.6 % compared to last year from DKK 36.2 mil-lion in 2003 to DKK 32,0 million in 2004. The decline is mainly due to the fact that the team has played 2 fewer matches in the Danish SAS League in 2004 than in 2003 plus TV revenues regarding European Cup matches are lower than in 2003.
  
  
• Sponsor and advertising income continued to increase this year by 10.3 % from DKK 40.7 million in 2003 to DKK 44.8 million in 2004.
  
  
• Other income primarily related to Brøndby Stadium, sales of merchandise and GildhøjCentret increased by 39.5 % from DKK 36.1 in 2003 to DKK 50.4 in 2004. This increase is particularly due to the sale of the northern plot at GildhøjCentret as well as a remarkable increase in the sale of merchandise after the insourcing by the end of 2003.
  
  
• The total expenses increased by 0.9 % from DKK 101.3 million in 2003 to DKK 102.2 million in 2004. 
  
  
• The result before transfers and financial items is DKK 25.7 million compared with DKK 12.7 million in 2003. This year's result after tax amounts to DKK 17.8 million compared with DKK 4.6 million in 2003.

The development in the company's income continues to show an upward trend and the company has also succeeded in reducing the increase in expenses so that it is at the same level as the inflation.

The company more or less succeeded in achieving the sponsor and advertising income as budgeted for 2004, but it continues to stay below the forecast in connection with the reconstruction of Brøndby Stadium. The assumption, that the delay of the reconstruction of Brøndby Stadium has created a time lag on the sponsor and advertising income of an accounting year, has been confirmed.

The transfer income for 2004, which amounts to DKK 21.7 million is primarily due to the sale of the two Swedish national players Mattias Jonson and Andreas Jakobsson to Norwich City FC and Southampton FC in England respectively. The company's independence of transfer income will, as expected, be obtained in the accounting year 2005. Furthermore, there has not been budgeted for important revenues regarding international matches such as participation in the UEFA's Champions League, which will lead to an extra income of approximately DKK 20-25 million.

Expectations for 2005

 The expectations to the football team are huge. With a competitive edge of 10 points ahead of number two in the Danish SAS league the prospects of winning the Danish championship is promising. However, football is an unpredictable game, as injuries and bad luck may soon change the team?s leading position. Nevertheless, it is with great optimism that the trainers and the team will kick off this year's spring season.

Brøndby IF look forward to improve the bad 2004 season within the UEFA Cup tournament. Winning the Danish championship will certainly give access to qualification matches to both the economic and sportive very attractive Champions League. Michael Laudrup and his team's overall objective is to continue developing the team tactically and technically and thereby strengthen the players to overcome new challenges.

The Board anticipates that year 2005 will yield a profit of around DKK 6-7 million as well as a result before transfer and financial items around DKK 20-22 million, as transfer income is expected to be negative at around DKK 7-8 million and financial items at around DKK 7-8 million.

Downloads

• Summary of Annual Report 2004

For further information, please contact, Financial Manager Martin Carstensen.