Strategisk regnskabsanalyse og værdiansættelse af Brøndbyernes IF Fodbold A/S

Siavash Faghihi

Student thesis: Master thesis


Brøndbyernes IF Fodbold A/S was founded in 1964, and is the company behind the footballs club’s professional league team. The company’s activities are centered on professional football, but they also operate in other areas within the sports and entertainment industry. The club has since its establishment in 1964 marked itself as a leading football club in Denmark with a rich history and a long record including a nationwide fan base. Nevertheless, the last couple of years have proven to be a turbulent period. The club has not been able to achieve success on the pitch, which has been the catalyst for the ongoing crisis. The purpose of this master thesis is to estimate the theoretical market value of Brøndbyernes IF Fodbold A/S based on a strategic and a financial statement analysis on March 8, 2013. The strategic position is weakened, mainly due to sporting and financial challenges. The sporting performance has been poor, which may result in a possible downgrade from Superligaen to the first division at the end of the 2012/13 season. Financially, the club is struggling with declining spectator interests, sponsorship interests, and the absent of a main sponsor. The link between the club´s sporting performance and financial situation has been confirmed and is reflected in the financial accounts. The club´s lack of success on the pitch has diminishing revenues. The profitability analysis shows that the financial statements are highly dependable of the sporting performance, which is reflected in the diminished revenue. The return of invested capital has decreased from 7 % in 2005 to -7 % in 2012, which indicates that the club has not been able to generate returns successfully. Based on the strategic analysis and the financial statement analysis, budget assumptions for the club’s future development has been made and used to develop pro-forma statements for three possible scenarios for a specified budget period of five years. The scenarios consist of a best, base and worst case scenario, and their probabilities are estimated to be 5 %, 70 % and 25 % respectively. The prepared pro-forma statements have provided the background for the use of DCF- and RIDO-model, which has been used for the valuation. WACC has been used as discount rate, and is estimated to be 4,46 %. The market value of Brøndby IF on March 8, 2013 was estimated to be TDKK 63,676, equivalent to a share price of DKK 11.27. Compared with the share price on the Copenhagen Stock Exchange on March 8, 2013 the share price was DKK 11.20. This indicates that the Brøndby IF share has been slightly undervalued by DKK 0.07 per share.

EducationsMSc in Auditing, (Graduate Programme) Final Thesis
Publication date2013
Number of pages120