Finances 2005

06.04.2006 14:13

The recent years' positive sportive development peaked in 2005, when the team, after an unforgettable spring season, won gold medals in the Danish SAS league 2004/2005 with twelve points ahead of number two. Moreover, the team had also won the Danish Cup tournament that, after the spring season, lead to the celebration of "the Double" for the second time in the history of the club.

The team kicked off the autumn season by winning the Liga Cup, before they were going to defend their title in the Danish SAS League and play the qualification matches in the Champions League. After having won twice over Dinamo Tbilisi, Brøndby IF was ready to face the previous Champions League winner from Ajax Amsterdam in the run for the Champions League group stage.

After having played two close matches against Ajax Amsterdam, Brøndby IF did unfortunately not succeed in winning any of these matches and instead of qualifying themselves to the Champions League group stage; they were now going to meet FC Zurich with whom they were going to compete for a place in the group stage in the UEFA cup.

After having played the two matches Brøndby IF came in as the final winner, and thereby they were the first Danish team ever, who were going to participate in the UEFA Cup's group stage, where the competitors were Palermo, Espanyol, Lokomotiv Moskva and Maccabi Petach-Tikva.
The team played four close matches, which resulted in four points with one victory; one draw and two defeats. This was obviously not enough to advance further ahead in the tournament. The team had, however, proved that they could easily play on the same level as several of the other big European clubs.

Although, the team continued to show impressive and entertaining football, the autumn season in the Danish SAS League were indeed influenced by all the European matches as well as a weakened team affected by more injuries than usual. Nevertheless, the team managed to come in second, some four points behind number one.

2005 has been characterized by entertaining and offensive football, which is also reflected in the positive development in the number of spectators at Brøndby Stadium.

The financial development continues to show an upward trend and the company's result amounts to DKK 31,4 million before tax.

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 20.785 in 2005 compared with 19.290 in 2004 and 17.614 in 2003. The corresponding figures for the 2005 autumn season were 16.439 compared with 15.912 in 2004 and 16.290 in 2003.

  • The total number of spectators at 18 Danish SAS League matches, 5 European Cup matches, 3 Danish Cup tournaments and 2 Royal League matches (in total 28 matches) was 497.231 at Brøndby Stadium corresponding to an average of 17.758 spectators per match.

  • Gate receipts and TV revenues increased by 48.7% compared to last year from DKK 32.8 million in 2004 to DKK 48.8 million in 2005. The increase is mainly due to the following: the team has played two more matches in the Danish SAS League in 2005, gate receipts and TV revenues regarding European Cup matches have gone up compared to 2004, as the team has played more matches and least but not last the sale of season cards have been increased.

  • Revenues from sponsorship have increased by 23.2% compared to last year from DKK 44.8 million in 2004 to DKK 55.2 million in 2005. This is mainly due to the growing number of sponsorship that have increased from 305 in 2004 compared to 350 in 2005 as well as payment of bonus in connection with the sportive success.

  • The total expenses increased by 29.2% from DKK 102.8 million in 2004 to DKK 132.7 million in 2005.

  • The result before transfer and financial items is DKK 21.2 million in 2005 compared with 25.2 million in 2004.

This year's result after tax amounts to DKK 22.8 million compared with DKK 17.8 million in 2004.

The development in the company's revenues continues to show an upward trend with a total increase by 20.3%. Furthermore, if the net turnover for 2004 (comprising a final revenue of DKK 14.6 million regarding the sale of a real estate at GildhøjCentret) is taken into account, the total increase amounts to DKK 40.6 million or 35.8%.

The increase of expenses is mainly due to additional costs related to all the European matches as well as bonus agreements with the football team and the trainers as a result of their impressive football results.

This year's transfer revenue of DKK 33.1 million is primarily due to the sale of Thomas Kahlenberg, who came from Brøndby IF's own youth section, to French AJ Auxerre.

Events after the end of the accounting year

During the first months of the year, Brøndby IF has signed a four-year contract with defender Joseph Elanga (from Cameroon), who played in Malmö FF, a five-year contract with striker Morten "Duncan" Rasmussen from AGF and a four-year contract with the Swedish national player Martin Ericsson from AaB.

Furthermore, the club sold the Danish national striker Morten Skoubo to Spanish Real Sociedad as well as the Danish defence talent Daniel Agger to last year's winner of Champions League, Liverpool FC from the English Premier League.

Change in accounting policies

In 2005, Brøndbyernes IF Fodbold AS presents, for the first time, their annual report in accordance with the IFRS.

Outlook for 2006

At the beginning of this year, the Board's expectations to this year's result before tax was that 2006 should yield a profit of DKK 3-5 million as well as a result before transfer and financial items DKK 23-25 million, as transfer activities are expected to be negative at DKK 14-15 million and financial items at DKK 6-7 million.

After the sale of the two Danish national players Morten Skoubo and Daniel Agger together with the investment in Joseph Elanga, Morten "Duncan" Rasmussen and Martin Ericsson, the expectations to this year's result before tax were adjusted up to DKK 60-70 million.

The company's independence of transfer revenue will compared to the previous years be maintained in the financial year for 2006.

Investments

During the year, the company invested approximately DKK 10 million in improving the facilities for the spectators, the sponsorship as well as the players. The lounge facilities at Brøndby Stadium have been enlarged with an air condition system in order to ensure a better comfort in connection with football matches and other arrangements.

In addition to that, investment has been made in improving the video monitoring as well as a new surface around the area at Brøndby Stadium. In addition to that, investment has also been made in improving the stand, the booths and the toilet facilities, which all ensure a better comfort for the spectators.

2005 was also the year, where the exhibition of Brøndby IF's history was presented in the Hall at Brøndby Stadium in connection with the Danish royal couple's visit at Brøndby. The exhibition shows the development of the club from being a village club to being Denmark's leading football club with international success.

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