Strategisk analyse og værdiansættelse af Brøndbyernes IF A/S

Jørn Hagman

Student thesis: Diploma thesis


In recent years, international football has been struggling financially, resulting in 1 out of 7 European football clubs expressing “going concern” doubts. The financial problems have increased despite of record high estimated revenue in European football equal to 16 billion euro’s in 2011. The main problem is the increase in player wages, which was equal to 65 percent of all revenue in 2011. In Denmark the former top football club, Brøndby IF, suffers both sportingly and financially. This means, that the club is in considerable risk of relegation to a lower football league, while the financial situation is also so severe, that only a capital increase can rescue the club from bankruptcy. Even though the situation in Brøndby IF is dire, a great number of stakeholders are still following the club and considering the idea of investing, due to the club’s great potential which is considered as one of the biggest in Danish football. A strategic analysis of Brøndby IF indicates that the clubs strategic position in the Danish and international football industry is quite solid. The global financial crisis has affected the football club’s income, but as a result of loyal fans (customers) and long television and sponsor contracts, the industry has not been hit as hard as many other industries. The attractiveness of the Danish football market is considered as above average, and Brøndby IF due to their great potential, as one of the strongest players despite of the present situation. The strategic analysis does also indicate that Brøndby IF, based on their strong and very unique brand, has a high potential of sustainable competitive advantages. One of the biggest reasons for the current crisis in Brøndby IF, is that the club has abandoned its earlier and successful strategy, which now has resulted in “strategic drift”. A review of Brøndby IF’s last seven income statements, a complete profitability analysis and benchmark to five other Danish football clubs, shows both a harmful development in the ratio between income and expenses and that Brøndby IF is threatened by bankruptcy. Despite the present situation, the risk of bankruptcy is estimated to only 10 percent. A valuation of Brøndby IF estimates a total enterprise value of almost 240 million DKK and a stock price of 4,62 DKK. This assessed stock price is higher than the assumed subscription price of 2 DKK per stock, which means that an investment in Brøndby IF is considered attractive.

EducationsGraduate Diploma in Accounting and Financial Management, (Diploma Programme) Final Thesis
Publication date2013
Number of pages134