Strategisk regnskabsanalyse og værdiansættelse af Brøndbyernes IF Fodbold A/S (Valuation of BIF)

Christopher Bruun Jensen & Jacob Chemnitz

Student thesis: Master thesis


BIF is one of the largest football clubs in Denmark. The club is located outside Copenhagen, and was founded on the 3rd of December 1964 as an association between the two football clubs, Brønd-byøster Idrætsforening and Brøndbyvester Idrætsforening. BIF has been the most successful football club in Denmark during the last two decades. During that time, BIF won the Danish league five times and finished in the runner-up position seven times. Un-fortunately, the situation has changed within the last couple of years, as BIF has finished in the lower half of the Danish league. The poor results experienced in the league, coupled together with the financial crisis in Denmark, has led BIF into a sporting and economic crisis. The critical situation in BIF is reflected in the value of the company’s shares. The value of one share of BIF was DKK 10,40 on the 30th of June 2012. This value is historically low, when comparing it to the five year average. The main purpose of this master thesis is to estimate the value of BIF’s shares. This problem has been addressed by in-depth strategic analysis, financial analysis and a valuation of the organization. The future prospects for BIF are difficult to forecast, because the football market is volatile and dependent on several factors. Currently BIF is undergoing a sporting and economic crisis, which makes it difficult for BIF to return to its former strength. From the strategic analysis, we found that BIF should focus on their core competence, which is developing youth players. Furthermore, BIF should focus on the further development of their facilities, such as the property and restaurant area, and dissolve the structure of their stocks. The accounting analysis was based on reformulations of the income statement, the balance sheet and the equity balance for the period from 2007 until 2011. After having elucidated the strategic analysis and calculated the key figures of BIF, we put together a budget to forecast three possible future economic scenarios for BIF, a best-, a base- and a worst-case scenario. Each scenario de-pends on how BIF has performed within a 5-year period. We have estimated the WACC to be 4,73%. Using this estimation in the DCF-method, we calcu-lated the enterprise value of BIF to be 194,4 million DKK in the base-case scenario, 429,5 million DKK in the best-case scenario and 139,2 million DKK in the worst-case scenario. We have com-piled a sensitivity analysis with the focus on the WACC, and the enterprise value of BIF. The sensi-tivity analysis confirms that the football industry’s volatility and the WACC has a relatively big influence when using the DCF-method.

EducationsMSc in Finance and Accounting, (Graduate Programme) Final Thesis
Publication date2013
Number of pages142