BRØNDBYERNES IF FODBOLD A/S. Annual report accountingyear

Transcription

1 BRØNDBYERNES IF FODBOLD A/S Annual report accountingyear

2 Management's review The year in brief As expected, year 2002 was a financially very hard year. The Supervisory Board's expectations for the year were an operating profit, provided that significant transfer income was achieved. Since this transfer income was not achieved, the company has realized that it was a very hard year financially. However, the year became a really good sports year that peaked when Brøndby IF won the Danish Championship in May 2002; the club s ninth Danish Championship since As regards the other important operating areas, the company experienced a positive development. - For the home matches in the SAS League in the spring season, the average number of spectators was 15,428 compared with 15,393 in 2001 and 12,392 in The corresponding figures for the 2002 autumn season were 12,173 compared with 15,025 in 2001 and 10,384 in The total number of spectators to 16 SAS League matches, 3 Europe Cup matches, 1 DONG cup match was 276,293 at Brøndby Stadium corresponding to an average of 13,315 spectators per match. - Gate receipts and TV revenues increased like last year. This year s increase was 5.8% from DKK 22.3 million in 2001 to DKK 23.6 million in Sponsor and advertising income continued to increase this year by 8.7% from DKK 35.7 million in 2001 to DKK 38.8 million in Other income, primarily relating to Brøndby Stadium and GildhøjCentret, increased by 21,5% from DKK 22.8 million in 2001 to DKK 27.7 million in Total expenses increased by 16.2% from DKK 85.9 million to DKK 99.8 million in Results before transfers and financial items amounted to a negative DKK 8,966 thousand in 2002 compared with a negative DKK 4,308 thousand in The loss for the year after tax is DKK 24,698 thousand compared with a loss of DKK 16,438 thousand in Income from the new facilities at Brøndby Stadium has still not generated during the last years as expected. The results of the company still show an upward trend. However, expenses in 2002 grew higher than income. This expense growth and the crisis in the international television market cause the unsatisfactory results. Both a German and a British television company has faced big financial problems which have led to financial problems for a great number of British and German clubs. All this has indicated that most clubs have not had finances to cover transfers. In general, nearly all European football clubs have faced financial crises. The poor demand for players has, of course, also affected Danish players. The market for transfers of players has been totally different in the second half of

3 It is now obvious that many famous football players will be unemployed at the expiry of their contracts not only in Denmark but also in the great European football nations. As regards Danish clubs among others Brøndby IF, this trend has implied a very poor demand from foreign clubs for players. Actually, it has been impossible for Brøndby IF to transfer players that would pay off considerably during As the expected and budgeted transfer income was not achieved, the company has to face a very large loss for As mentioned above, poorer earnings from the new activities at Brøndby Stadium are also a reason for the unsatisfactory financial results. In 2002, the company achieved the sponsor and advertising income budgeted for The assumption seemed to be correct that, owing to the delay of the rebuilding of Brøndby Stadium, sponsor income would generate at a delay of one financial year. The company expected a profit for 2002 of at least one million. This expectation was reconsidered during the year, recently in December 2002, to the results now realised after tax. Prior to year 2000, the company made great forward-looking investments in an internationally experienced coach and new experienced Scandinavian players. In 2001, the results of these investments had still not quite paid off. In 2002, the expectations for the sports investments were fulfilled in full, as in May 2002 the players won the Danish Championship after a very exciting final of the SAS League. The Supervisory Board expects that year 2003 will see a profit. However, a profit still implies that transfer income is generated. The requirement for achieving positive results is, however, considerably lower than for the last two years. According to plans, total independence of transfer income cannot be achieved until financial year Outlook for 2003 The sports outlook is bright as usual. The second-placed team of young players in the SAS League is expected to defend its position. FCK is leading by 9 points after the first 18 matches and we have to admit that it will take not only good play but also a good deal of luck to narrow this gab. The expectations are to achieve a new qualification to the UEFA Cup in this season, and that the team will achieve better results than in previous seasons. A qualification for European tournaments implies that Brøndby IF finishes at the top of the SAS League. Otherwise we will be very disappointed. The financial outlook for the year is rather modest. We have budgeted a profit before tax of approximately DKK 0.5 million after player transfers. At the beginning of 2003 the loan agreements were changed in accordance with an agreement made with the company s bankers by refinancing part of the company s long-term loans so that they are repayable over a longer period. At the same time the cash resources are increased to cover seasonal variances of income and expenses and also the current cash outflow. Post balance sheet events The company has taken advantage of an option to buy all the shares of Sakamoto Media A/S. The company is responsible for marketing Brøndby IF, but will also be the media and advertising agency for external customers specialising in websites and events. The company s managing director is Mogens Krogh. 2

4 Sakamoto s first marketing job is aimed at children, a so-called Event Tour, a children s club BIF Kids, etc. The new initiates have been well received by the users. The player Mikkel Jensen has been transferred to Hammarby in Sweden and the player Peter Madsen has joined Bundesliga Club Vfl. Wolfsburg on loan until 30 June The players Søren Larsen and Rafael Niznik has joined the Fotballclub Frem on loan until 30 June Two new players, Karim Zaza who has been elected best goalkeeper in the SAS League during the last two seasons and the Swedish international player Andreas Jakobsen officially become Brøndby players from 1 July

5 Financial highlights - Group DKK' Total income Depreciation/amortisatio Other expenses Profit/loss before transfer and financial items Transfer Profit/loss before financial items Financial items, net Profit/loss on ordinary activities Tax Profit/loss after tax Intangible assets Property, plant and equipment Investments Securities Other current assets Total assets Share capital Capital and reserves Provisions Long-term liabilities other than provisions Short-term liabilities other than provision Total equity and liabilities Average number of employees Investment in property, plant andequipment

6 Income statement Group Parent company DKK'000 Note Income Gate receipts and TV revenues 23,615 22,340 23,615 22,340 Sponsor and advertising income 38,832 35,726 38,832 35,726 Prizes Other income 27,732 22,778 25,687 22,778 Total income 90,853 81,543 88,808 81,543 Expenses Expenses for matches and players 6,582 7,268 6,582 7,268 Selling and advertising expenses 14,275 13,749 14,275 13,749 Administrative expenses 1 6,519 5,184 6,237 5,184 Staff costs 2 44,575 36,011 42,300 36,011 Depreciation and amortisation 3 11,430 9,865 11,430 9,865 Other expenses 16,438 13,774 16,175 13,774 Total expenses 99,819 85,851 96,999 85,851 Loss before transfer and financial items -8,966-4,308-8,191-4,308 Transfer Transfer income 7,243 9,271 7,243 9,271 Transfer expenses 3,752 1,620 3,752 1,620 Depreciation, players 3 16,135 13,236 16,135 13,236 Total transfer -12,644-5,585-12,644-5,585 Loss before financial items -21,610-9,893-20,835-9,893 Loss on ordinary activities before tax in groupenterprises Interest income and similar items Interest expense and similar items 5 13,343 13,335 13,287 13,335-13,317-13,083-13,261-13,083 Loss before tax -34,927-22,976-34,927-22,976 Tax 6 10,229 6,538 10,229 6,538 LOSS FOR THE YEAR -24,698-16,438-24,698-16,438 The loss is transferred to the capital and reserves. 5

7 Balance sheet at 31 December Group Parent company DKK'000 Note ASSETS Fixed assets Intangible assets Deposits Contractual rights, players 8 15,860 19,037 15,860 19,037 Other rights 9 5,250 4,776 4,095 4,776 21,318 23,990 20,121 23,990 Property, plant and equipment Land and buildings , , , ,558 Fixtures and fittings, tools and equipment11 8,309 11,185 8,309 11, , , , ,743 Investments 12 Investments in group enterprises Investments in associates Total fixed assets 414, , , ,733 Current assets Inventories Goods for resale 959 1, , , ,092 Receivables Trade receivables 4,276 3,075 4,174 3,075 Amounts owed by group enterprises 0 0 1,086 0 Other receivables 4,740 5,950 4,731 5,950 Prepayments 506 1, ,357 Tax assets 6 15,538 5,309 15,538 5,309 25,060 15,691 26,030 15,691 Securities Other securities Cash at bank and in hand Total current assets 26,681 17,730 27,651 17,730 TOTAL ASSETS 441, , , ,463 6

8 Balance sheet at 31 December Group Parent company DKK'000 Note EQUITY AND LIABILITIES Capital and reserves 13 Share capital 77,100 64,000 77,100 64,000 Share premium account 87,597 71,582 87,597 71,582 Retained earnings 60,001 83,611 60,001 83,611 Total capital and reserves 224, , , ,193 Long-term liabilities other than provisions 14 Credit institutes , , , , , , , ,532 Short-term liabilities other than provisions Short-term portion of long-term liabilities other than provisions 15,604 15,504 15,604 15,504 Bank loans and overdraft 22,167 11,027 21,699 11,027 Trade payables 4,204 8,120 4,501 8,120 Other payables 10,955 13,457 10,799 13,457 Deferred income 1,301 1,630 1,301 1,630 54,231 49,738 53,904 49,738 Total liabilities other than provisions 216, , , ,270 TOTAL EQUITY AND LIABILITIES 441, , , ,463 Contingent liabilities 15 Charges, etc. 16 Related party transactions 17 7