This document compares the financial statements of Arsenal and Ajax football clubs over several years. It finds that while both clubs have grown revenues significantly, Arsenal has substantially higher revenues and equity. However, Ajax has a lower debt ratio. Both clubs represent good long-term investments for major shareholders due to their strong brands and marketing potential, though short-term profits would be uncertain.

1. Financial Accounting
Presentation
Comparison of the financial statements of the football clubs
Arsenal & Ajax

2. The Football Industry
Wether to invest or not in Arsenal F.C. and A.F.C. Ajax
• Exponential growth of the industry in the last 50 years
• The “King of Sports” for many people
• Top 10 Euro Clubs revenues sum up to more than 3 billion euros
• Clubs have been entering the stock market in the recent years
• Revenues connected to the capital structure and sporting results

3. Capital Structure (Revenues)
FORMED BY:
• Season tickets
• Sponsorship deals
• TV rights share
• Merchandising
• Matchday tickets
• Investments (Youth team, etc.)
• Player sales
• Bank or ownership loans

4. The Financial Fair Play (FFP)
SITUATION:
• Increasing debt in the football industry
• Bigger teams have economical advantage
LEAD UEFA TO INSTITUTE FFP:
• Obligation for clubs to balance their books or break even
• Obligation to respect payment commitments at all times
• Clubs who fail to do that will be required to provide budgets
detailing their strategic plans

5. Ajax and Arsenal
• Fame
• Success in football
• Examples for other clubs
• Discover youngsters
• Top stadium, training facilities, flourishing youth teams

6. Season tickets and average
attendance (2011)
• Ajax :
Season tickets: 40%
Average attendance: 95%
Stadium capacity: 52,342 seats
• Arsenal
Season tickets: 98%
Average attendance: 100%
Stadium capacity: 60,361 seats

7. Internet (Media overview)
• Ajax has an official Twitter and Facebook account,
the latter has 382,839 likes.
• Arsenal has the same accounts, with almost 8.5
million likes.

8. Support spread
(Europe, mil. supporters)
-Arsenal is in the 7°
position with 21,3
million fans in Europe
-Ajax occupies the 19°
position, with 6,5
million fans in its
continent.

9. Revenues
250
200
Revenues in million $
150
100
50
0
2002 2003 2004 2005 2006 2007 2008
Ajax 55.38 76.52 64.23 66.63 74.43 64.89 61.89
Arsenal 90.97 117.83 156.89 138.4 137.24 200.84 222.97

10. Net income
30
20
10
Net income in million $
0
-10
-20
-30
2002 2003 2004 2005 2006 2007 2008
Ajax -25.79 -4.04 9.77 2.85 -6.63 -10.42 7.77
Arsenal -20.56 4.01 8.15 8.29 7.9 2.82 25.73

11. Debt ratios
1
0.9
0.8
0.7
0.6
Debt ratios
0.5
0.4
0.3
0.2
0.1
0
2002 2003 2004 2005 2006 2007 2008
Ajax 0.43 0.43 0.31 0.34 0.36 0.38 0.48
Arsenal 0.27 0.54 0.66 0.67 0.75 0.77 0.69

12. Current ratio
Current Ratio Ajax Arsenal
2010 0,72 4,5
2009 1,05 2,72
2008 1,37 3,04
2007 1,29 3,67
2006 1,31 2,73
2005 1,64 2,8
2004 1,58 2,42
2003 1 1,93
2002 0,9 1,31

13. Equity (In $x10)
Equity Ajax Arsenal
2010 39.3 204,3
2009 61,8 195,6
2008 65,4 111,9
2007 57,8 77,9
2006 68,3 36,3
2005 75,5 93,2
2004 73,5 108,7
2003 63,5 92,3
2002 66,4 98,3
2001 93,4 117,3

14. Intangible fixed assets
(In mil.Euros)
Intangible fixed assets Ajax Arsenal
2010 38,8 63,9
2009 44,3 71,9
2008 31,8 78,4
2007 37,4 98,3
2006 29,7 97,2
2005 28,3 42,7
2004 28,4 52,4

15. Tangible fixed assets (In mil. Euros)
Tangible fixed assets Ajax Arsenal
2010 11,2 43,3
2009 9,4 41,4
2008 8,4 40,1
2007 10,1 52,9
2006 10,7 39,5
2005 11,8 25,1
2004 12,3 23,2

16. Stock turnover
Stock turnover Ajax Arsenal
2010 60,3 98,14
2009 50,3 112,32
2008 122,62 150,62
2007 85,73 119,62
2006 97,23 244,22
2005 152,37 161,85
2004 203,01 164,37
2003 191,03 128,77
2002 158,6 199,13

17. Strenghts
Arsenal Ajax
Revenues of 380 million euros Ownership of stadium
Ownership of stadium Most famoust team in the Netherlands
More than 1k euros earned per share Great European club tradition
Quality trademark Quality of youth team
3° most supported football team in the Good debt ratio
world

18. Weaknesses
Arsenal Ajax
Profit connected with sporting results Recent years dry spell
High long term debt Well supported only in the
Netherlands
Marketing almost fully developed in Best players are often sold to break
Europe even
Main players left or are about to leave Unstable first team leadership
the team

19. Opportunities
Arsenal Ajax
New Kroenke ownership New De Boer’s coaching
Young football prospects Promising and young first team players
Brand expansion in Asia Brand expansion in Asia and southern
Europe
Stadium-connected revenues Not defined leadership in Dutch
football in the most recent years

20. Threats
Arsenal Ajax
Start of the FFP Has not been very successful lately
Correlation between football Correlation between sporting
performance and the ability to pay performance and brand growth
back the debt
Possibility that Wenger leaves if Best youngsters will leave if
investments on new players are not investments are not made
made
Inability to pay back the debt Overall decline of Dutch football

21. Final analysis:
Should an investor put money in either company?
• Both teams wouldn’t be profitable for a small money investor
• Both teams, and especially Arsenal, are and could be very
profitable for their owners or major shareholders
WOULD BE PROFITABLE TO OWN BECAUSE:
• Both teams represent a good way of running a football club
• Ajax has huge inexpressed merchandising and marketing
potential
• Arsenal’s brand has very few rivals in the world