Net turnover merchandising
NLG 'ooo 01/07/97- 96/97 95/96 94/95
31/12/97
Merchandising 2,723 100 3,594 100 2,878 100 935 100
The net turnover from merchandising mainly consists of income from the licence granted
to Umbro for sports products, with the name and logo of Ajax. Furthermore, Ajax generates
income from licences granted to companies that produce Ajax-associated non-sports
products. Ajax receives royalties for both activities. In the financial years 1994/1995 and
1995/1996 Fan Promotions B.V. had been given an exclusive right to grant sublicences for
producing and distributing non-sports products. Since January 1, 1997, Ajax has taken
control of this activity.
The increase in turnover from merchandising is mainly the result of the successes of Ajax
on the pitch and the expansion of the Ajax-productrange.
Operating costs
NLG '000 01/07/97- 96/97 95/96 94/95
31/12/97
Cost of sales 1,812 3.5 115 0.2 - -
Wages, salaries and
social security
contributions 23,466 45.6 33,885 44.7 25,517 55.6 24,387 61.7
Depreciation
of tangible fixed assets 1,696 3.4 2,054 2.7 1,968 4.3 1,928 4.9
Other operating costs 24,449 47-5 39.7°° 52.4 18,383 40.1 13,223 33.4
Total operating costs 51,423 100 75,754 100 45,868 100 39,538 100
The operating costs have increased by a total of 91.6% to NLG 75.8 million in the past
three financial years. The main components are the wages, social security costs and other
operating costs. In each of the financial years mentioned above, these costs together
accounted for more than 95% of the total operating costs.
The most important factors influencing wages and social security costs are the successes
in the field and the consequences of the Bosman ruling. The successes, especially in the
financial years 1994/1995 and 1995/1996, have led to high premium payments for players
and the coaching staff. The consequences of the Bosman ruling were fully revealed in the
1996/1997 financial year. Since the ruling, longer contracts are closed with players so that
these can only leave without a transfer fee after a longer period at the club. As these
longer contracts are generally connected with higher wages, personnel costs increased
during that year.
The other operating costs mainly consist of match costs and housing costs. Match costs
form an important part of these costs. As a result of the larger number of matches played
and the move to the ArenA (more stewards, and, as a result of the increased revenues
from season tickets, increased obligatory contributions to the KNVB) these costs have
increased significantly in the period from 1994/1995 to 1996/1997. Furthermore, as a result
of the move to the ArenA and De Toekomst, housing costs increased from NLG 1.8 million
to NLG 16.8 million in the financial year 1996/1997. This concerns the rent and service and
maintenance costs of the ArenA, as well as the maintenance and exploitation costs of De
Toekomst.
Cost of sales are the purchase costs of sold merchandising articles, paid royalties and
guaranteed amounts which have been paid by Ajax Images to the players. Depreciation on
tangible fixed assets in the financial years 1994/1995 and 1995/1996 consisted of the
accelerated write-off of the 'De Meer' stadium.
