Investment
Investment in transfer and signing
fees and other intangible fixed assets
Divestment of transfer and signing fees
Investment in tangible fixed assets
Divestment of tangible fixed assets
Investment in financial fixed assets
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RECENT DEVELOPMENTS
PROSPECTS
(x NLG '000)
01/07/97-
31/12/97
96/97
95/96
94/95
15,803
61,074
14,913
11,392
(9,027)
(13,383)
(2,504)
(12,989)
6,126
13,190
(10,169)
14,064
(429)
6,152
(350)
20,030
Divestment of financial fixed assets
Investment in intangible fixed assets
As a result of the Bosman ruling and the increased number of players in the selection, the
investment in transfer and signing fees and other intangible fixed assets has increased
considerably in the financial years 1995/1996 and 1996/1997. The capitalised Transfer and
Signing Fees can deviate from the actual market value of these players' contracts.
Investment in tangible fixed assets
The most important investments in tangible fixed assets in the financial years 1994/1995,
1995/1996 and 1996/1997 are investments in land and buildings for example in building
'De Toekomst' and refumishments of the ArenA Stadium. Total amount invested was
NLG 27 million. In addition, investment has been made in other inventory.
Investments in financial fixed assets and acquisitions
The investment in financial fixed assets concerns an investment of NLG 20 million in
certificates of shares of the 'Stadion Amsterdam N.V. and NLG 30,000 in ENV.
In the first half of the 1997/1998 financial year, turnover from football activities was
negatively influenced by Ajax not participating in the Champions League. As a result of the
increased number of players in the selection of the first team, caused by the contracting
of new players, and the longer and lengthened contracts that were closed at higher costs,
personnel costs increased in the current financial year.
The result over the whole financial year 1997/1998 after taxation is not expected to be
positive assuming that there will be no further increase of the transfer income result in the
second half of the current financial year. In the current financial year, total turnover from
gate receipts and premiums will decline because the club has not participated in the
Champions League. Furthermore, there is an increase in the wages and social security
costs which resulted from investments in new players at the beginning of the season. On
the other hand, there was a slight increase in sales from business seats and sky boxes as
a result of a slight price increase of these stadium seats as well as the expansion of the
number of business seats in 1997/1998. There was also an increase in turnover from
sponsoring and advertising as a result of the renewal of the contracts with the three
largest sponsors of the Company.
Ajax won the National League for the 27th time on April 12, 1998 and thereby qualified for
the Champions League for the next season. In the 'Amstel Cup', Ajax has reached the semi
finals. In the UEFA Cup, Ajax was eliminated in the quarter-finals. Because of the
participation in the Champions League, turnover will increase in the 1998/1999 financial
year.
