0 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL POSITION AND RESULTS OF OPERATIONS GENERAL OPERATING RESULTS Football Sponsoring and advertising Television rights Merchandising Total The financial year of Ajax runs from July 1 through June 30. The financial position and operating results discussed in this chapter relate to and should be regarded in connection with the financial information as stated elsewhere in this Prospectus. The pro forma financial statements have been derived from the annual accounts of the Association for the financial years 1994/1995, 1995/1996, 1996/1997 and the interim results of the financial year 1997/1998. The information regarding the 1996/1997 financial year and the first half of the 1997/1998 financial year is consolidated. An auditors' report for the pro forma consolidated financial statements has been received from Price Waterhouse Nederland B.V. See the chapter 'Pro Forma Consolidated Financial Statements'. The most important valuation principles and principles for determination of the results apply to Transfer and Signing Fees and treatment of taxation. Transfer and signing fees are capitalised for the amounts paid to third parties and are depreciated over the period of the contract. Corporation tax is calculated on the basis of the Profit and Loss account, allowing for the difference between the commercial result and the fiscal result. The pro forma consolidated financial statements are based on the assumption that the Company already existed in previous years. The interim results of Ajax are influenced by the programme of the National competition. Turnover from season tickets is recorded according to the number of matches played in that competition. Premiums from the national competition, the Amstel Cup and friendly matches, premiums from the European Cup, together with match costs and premiums for players are allocated to the period in which the matches are played. Net turnover NLG '000 01/07/97- 31/12/97 96/97 95/96 94/95 29.542 63.1 67,811 74.8 46,719 72.3 43,921 76.4 11,207 23.9 13,978 15.4 11,946 18.5 11,082 19.3 3,338 7-2 5,282 5.8 3,099 4.8 1,521 2.7 2,723 5.8 3,594 4.0 2,878 4.4 935 1.6 46,810 100 90,665 100 64,642 100 57,459 100 Net turnover for the 1994/1995, 1995/1996 and 1996/1997 financial years was strongly influenced by the succesful participation of Ajax in the Champions League and the move to the Amsterdam ArenA and 'De Toekomst'. Turnover from football activities have therefore increased considerably in the financial years concerned. As a result of the above opportunities for sponsoring and advertising have strongly improved. The success of Ajax has led to an increase in the number of sub-sponsors and a better relationship with existing sponsors. The exploitation of television rights and merchandising has developed rapidly in recent years. The contract that KNVB has made for the collective exploitation of tv rights has improved from a financial point of view. In addition Ajax has made non-recurring television contracts with respect to the matches in the European Supercup and the World Cup for club teams in 1995/1996. Turnover from merchandising activities has increased as a result


Jaarverslagen Ajax NV (vanaf 1997) | 1998 | | pagina 33