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Arsenal vs Ajax
 

Arsenal vs Ajax

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    Arsenal vs Ajax Arsenal vs Ajax Presentation Transcript

    • Financial AccountingPresentationComparison of the financial statements of the football clubsArsenal & Ajax
    • The Football Industry Wether to invest or not in Arsenal F.C. and A.F.C. Ajax• Exponential growth of the industry in the last 50 years• The “King of Sports” for many people• Top 10 Euro Clubs revenues sum up to more than 3 billion euros• Clubs have been entering the stock market in the recent years• Revenues connected to the capital structure and sporting results
    • Capital Structure (Revenues)FORMED BY:• Season tickets• Sponsorship deals• TV rights share• Merchandising• Matchday tickets• Investments (Youth team, etc.)• Player sales• Bank or ownership loans
    • The Financial Fair Play (FFP)SITUATION:• Increasing debt in the football industry• Bigger teams have economical advantageLEAD UEFA TO INSTITUTE FFP:• Obligation for clubs to balance their books or break even• Obligation to respect payment commitments at all times• Clubs who fail to do that will be required to provide budgets detailing their strategic plans
    • Ajax and Arsenal• Fame• Success in football• Examples for other clubs• Discover youngsters• Top stadium, training facilities, flourishing youth teams
    • Season tickets and averageattendance (2011) • Ajax :Season tickets: 40%Average attendance: 95%Stadium capacity: 52,342 seats • ArsenalSeason tickets: 98%Average attendance: 100%Stadium capacity: 60,361 seats
    • Internet (Media overview)• Ajax has an official Twitter and Facebook account, the latter has 382,839 likes.• Arsenal has the same accounts, with almost 8.5 million likes.
    • Support spread(Europe, mil. supporters) -Arsenal is in the 7° position with 21,3 million fans in Europe -Ajax occupies the 19° position, with 6,5 million fans in its continent.
    • Revenues 250 200Revenues in million $ 150 100 50 0 2002 2003 2004 2005 2006 2007 2008 Ajax 55.38 76.52 64.23 66.63 74.43 64.89 61.89 Arsenal 90.97 117.83 156.89 138.4 137.24 200.84 222.97
    • Net income 30 20 10Net income in million $ 0 -10 -20 -30 2002 2003 2004 2005 2006 2007 2008 Ajax -25.79 -4.04 9.77 2.85 -6.63 -10.42 7.77 Arsenal -20.56 4.01 8.15 8.29 7.9 2.82 25.73
    • Debt ratios 1 0.9 0.8 0.7 0.6Debt ratios 0.5 0.4 0.3 0.2 0.1 0 2002 2003 2004 2005 2006 2007 2008 Ajax 0.43 0.43 0.31 0.34 0.36 0.38 0.48 Arsenal 0.27 0.54 0.66 0.67 0.75 0.77 0.69
    • Current ratioCurrent Ratio Ajax Arsenal2010 0,72 4,52009 1,05 2,722008 1,37 3,042007 1,29 3,672006 1,31 2,732005 1,64 2,82004 1,58 2,422003 1 1,932002 0,9 1,31
    • Equity (In $x10)Equity Ajax Arsenal2010 39.3 204,32009 61,8 195,62008 65,4 111,92007 57,8 77,92006 68,3 36,32005 75,5 93,22004 73,5 108,72003 63,5 92,32002 66,4 98,32001 93,4 117,3
    • Intangible fixed assets(In mil.Euros)Intangible fixed assets Ajax Arsenal2010 38,8 63,92009 44,3 71,92008 31,8 78,42007 37,4 98,32006 29,7 97,22005 28,3 42,72004 28,4 52,4
    • Tangible fixed assets (In mil. Euros)Tangible fixed assets Ajax Arsenal2010 11,2 43,32009 9,4 41,42008 8,4 40,12007 10,1 52,92006 10,7 39,52005 11,8 25,12004 12,3 23,2
    • Stock turnoverStock turnover Ajax Arsenal2010 60,3 98,142009 50,3 112,322008 122,62 150,622007 85,73 119,622006 97,23 244,222005 152,37 161,852004 203,01 164,372003 191,03 128,772002 158,6 199,13
    • StrenghtsArsenal AjaxRevenues of 380 million euros Ownership of stadiumOwnership of stadium Most famoust team in the NetherlandsMore than 1k euros earned per share Great European club traditionQuality trademark Quality of youth team3° most supported football team in the Good debt ratioworld
    • WeaknessesArsenal AjaxProfit connected with sporting results Recent years dry spellHigh long term debt Well supported only in the NetherlandsMarketing almost fully developed in Best players are often sold to breakEurope evenMain players left or are about to leave Unstable first team leadershipthe team
    • OpportunitiesArsenal AjaxNew Kroenke ownership New De Boer’s coachingYoung football prospects Promising and young first team playersBrand expansion in Asia Brand expansion in Asia and southern EuropeStadium-connected revenues Not defined leadership in Dutch football in the most recent years
    • ThreatsArsenal AjaxStart of the FFP Has not been very successful latelyCorrelation between football Correlation between sportingperformance and the ability to pay performance and brand growthback the debtPossibility that Wenger leaves if Best youngsters will leave ifinvestments on new players are not investments are not mademadeInability to pay back the debt Overall decline of Dutch football
    • Final analysis:Should an investor put money in either company?• Both teams wouldn’t be profitable for a small money investor• Both teams, and especially Arsenal, are and could be very profitable for their owners or major shareholdersWOULD BE PROFITABLE TO OWN BECAUSE:• Both teams represent a good way of running a football club• Ajax has huge inexpressed merchandising and marketing potential• Arsenal’s brand has very few rivals in the world