Finances 2006

The sportive results in 2006 have indeed been affected by the team?s unfortunate situation with the increasing number of injured players. During several periods, the team suffered from long-term injuries; as many as 5-6 of the key players. Moreover, several of the other 1st team players have been out due to longer and shorter periods with injuries.

In the Danish Cup Tournament 2005/2006 the team qualified for the semi-final. However, after having played two close matches against Esbjerg fB, Brøndby IF unfortunately did not succeed in winning overall and consequently the team did not get the opportunity to regain last year?s trophy in the Cup Tournament.

After a great start to the spring season as well as a close race competing for the Danish Championship, the team unfortunately lost a couple of important matches, which is why they, to their great disappointment, saw their gold medals being replaced by silver medals.

The team kicked of the autumn season by winning the Liga Cup again, and after they had won one match and played one draw against Icelandic Valur FC they qualified for the UEFA Cup?s second qualification round. After yet another victory and a draw against Flora Tallinn from Estonia, the team was now ready to play the first round in the UEFA Cup. This time Brøndby was playing against German Eintracht Frankfurt. However, after one defeat in Frankfurt and
one draw at Brøndby Stadium the team did not succeed in advancing further in this year?s UEFA Cup. The result of the first match in Frankfurt was, to a great extent, influenced by the fact that two players were given the red card.

After the summer break, the team had a fairly good start in the SAS League without losing any of their matches in the first nine matches. However, the unfortunate situation with the increasing number of injured players resulted in the fact that the team lost matches, which should easily have been won. The team?s present position in the SAS League table is, despite the conditions with the great number of injured players, considered to be far from optimal.

In the Danish Cup Tournament 2006/2007 the team started off by winning against Brønshøj Boldklub, before Brøndby IF, after having played a close match against OB in Odense, had to face the reality that they were defeated 1-0 and consequently they were no longer in the running for this season?s Cup Trophy.

In the Royal League?s group play the team has, despite all their injuries, performed well and after having won twice against Hammarby IF and having played two draws against Lillestrøm SK, the team had already advanced further in the tournament before the two last matches in the group this spring.

Regarding a number of important operating areas, the company has experienced the following:

• For the home matches in the Danish SAS League during the spring season, the average number of spectators was 15.559 in 2006 compared with 20.785 in 2005 and 19.290 in 2004. The corresponding figures for the 2006 autumn season were 13.092 compared with 16.439 in 2005 and 15.912 in 2004.
  
  
• The total number of spectators at 16 Danish SAS League matches, 3 European Cup matches, 2 Danish Cup tournaments and 4 Royal League matches (in total 25 matches) at Brøndby Stadium was 310.152 corresponding to an average of 12.406 spectators per match.
  
  
• Gate receipts and TV revenues decreased by 26.6% compared to last year from DKK 48.8 million in 2005 to DKK 35.8 million in 2006. The decrease is mainly due to the following: the sportive results have far from reached the same level as last year, where the team won both gold medals in the Danish SAS league and the Danish Cup tournament and last but not least qualified for the UEFA Cup group stage. If compared to 2004, where the sportive results were similar, both gate receipts and TV revenues have actually increased by DKK 3.0 million.
  
  
• Revenues from sponsorship remain the same from DKK 55.2 million in 2005 to DKK 55.2 million in 2006. If bonus arrangements are disregarded in connection with the sportive success in 2005, the company has actually experienced a growth in revenues compared to 2005.
  
  
• The total expenses decreased by 7.7% from DKK 132.7 million in 2005 to DKK 122.5 million in 2006. The result before transfer and financial items is DKK 7.8 million in 2006 compared with 21.2 million in 2005. This year?s result after tax amounts to DKK 54.9 million compared with DKK 22.8 million in 2005, which is by far the best result ever achieved in the company?s history.

The development in the company?s revenues continues to show an upward trend, if it is not taken into account that 2005 was in fact a year with remarkable sportive success. The company has, in comparison with 2004, experienced a positive growth in revenues. Furthermore, it ought to be taken into consideration that the net turnover for 2004 comprised non-recurring revenue regarding the sale of a real estate at GildhøjCentret.

The decrease in expenses is mainly due to additional costs in 2005 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 in 2005.

This year?s transfer revenue of DKK 100.9 million is primarily due to the sale of Daniel Agger, who came from Brøndby IF?s own youth section, to British Liverpool FC, Morten Skoubo to Spanish Real Sociedad and Johan Elmander to French Toulouse FC.

Events after the end of the accounting year

During the first months of 2007, Brøndby IF has signed a five-year contract with goal-keeper Stephan Andersen from Charlton, a four and a half-year contract with defender Mikkel Bischoff from Coventry and a four-year contract with the Zambian national player Christopher Katongo from Jomo Cosmos. Furthermore, the club sold the Icelandic national striker Hannes Sigurdsson to Norwegian Viking Stavanger, while Stefan Schmidt has changed to Silkeborg IF on a free transfer.

In the Royal League tournament the team qualified for the quarter-finals after one victory and one defeat against FC København. In the quarter-final, Brøndby won 3-0 against Brann Bergen at Brøndby Stadium and in the semifinal Brøndby won 2-1 against OB after having played extra time. In the final, Brøndby IF and FC København met again. After a rather intense match, Brøndby IF won 1-0 with a goal on penalty by Royal League?s top scorer Martin Ericsson. Subsequently, Brøndby IF was crowned as Nordic Champions for the first time in the club?s history.

The extension of Brøndby Stadium was completed in the beginning of 2007. Behind the Eastern stand, the company has built a brand new building of 8.000 square metres.
Outlook for 2007 The Board?s expectations to the accounting year for 2007 is that Brøndbyernes IF Fodbold A/S will achieve a result of DKK 28-30 million before transfer, financial items and tax, while this year?s result is expected to yield a profit of approximately DKK 2-5 million.

The company?s independence of transfer revenue will, compared to previous years, be maintained in the financial year for