/4s well as the other information as included in this prospectus, the following factors need
to be considered carefully by all persons considering an investment in the Ordinary
Shares. These factors may influence the result of the Company and the value of the
Ordinary Shares in various ways.
Cost structure and income
Ajax' aim is to continue its place at the Top of Dutch football, while at the same time
playing at the top level of professional football in Europe. See 'The Company -
Organisation and Activities'. In order to realise this strategic aim Ajax has made
investments, as a result of which fixed costs, including players' salaries, are on such a
level that income from the participation in the Champions League is of major importance
for the net turnover of the Company.
The financial position of the Company is partially determined by the amount of the
transfer and signing fees which is capitalised. When a player is forced to retire, a write
down will take place because of the permanent decline of the value of that player. The
income which Ajax may receive upon the leaving of a player before the official expiration
of his contract, could exceed or be lower than the bookvalue of that player's contract.
Hooliganism and violence in professional football could lead to increased costs and
declined income of the Company as it might cause a decline of the number of visitors at
professional football matches and a decreasing interest of sponsors. Furthermore,
hooliganism and violence could lead to the imposing of sanctions by the football
associations involved (see 'Description of the professional football industry'), including
fines, playing of matches without spectators and suspension of European cup
competitions for a certain period.
Possibility of implementing the growth strategy
It is expected that future growth will be realised from merchandising and media activities.
The extent to which the Company will succeed to realise growth from these activities
depends on a number of factors, including the possibility of protection (and the upholding
of this protection) of the 'Ajax' brand name and logo and future developments in the
legislative and regulatory environment, in particular with regard to the media activities of
The implementation of Ajax' growth strategy will make significant demands on the
management, management information systems and financial resources of the Company.
Controlling the growth will require continuous attention of the Board of Directors.
Ajax' activities, possibilities for growth and financial position partly depend on the
applicable national and international legislation and regulations and its implementation
Possible future amendments in such legislation and regulations may cause additional
(financial) obligations for the Company.
Participation in Stadion Amsterdam N.V.
The Company holds 13.1% of the share certificates in Stadion Amsterdam NV, which,
through a subsidiary company, carries out the exploitation of the ArenA (see 'the Company
- organisation and activities, other group companies/participations'). Start-up losses and
financing costs have led to negative results for this company. The Stadion Amsterdam NV
management expects to realise its first break-even result in the financial year 2000/2001.
The future value of the participation partly depends on the extent to which the
management of Stadion Amsterdam N.V. succeeds in realising this expectation.
Limited liquidity and Share price
There is no certainty that active trading in the Ordinary Shares will develop after
completion of the Offering. The price at which the Ordinary Shares will be traded can
fluctuate as a result of changes in the operating results and other factors.