0 RISK FACTORS /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. Players 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 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 Company. 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. Regulations 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.


Jaarverslagen Ajax NV (vanaf 1997) | 1998 | | pagina 17