Ajax brand returns to financial elite

A fantastic run through European cup competitions has had an extremely positive impact on the financial performance of the most famous Dutch football brand.

Many fans were hoping to see them in the final of last year’s prestigious Champions League. The fearless youngsters of Ajax Amsterdam came just seconds away from reaching the final in May. In the end, it was London’s Tottenham that traveled to Madrid to fight for the “big-eared trophy,” but Ajax’s semifinal participation still brought generous amounts of money into the club’s coffers.

In the 2018/2019 season, the club from the Dutch capital reported revenue just below the 200-million-euro mark. The “Godenzonen” (Sons of the Gods), as one of the club's nicknames goes, will most likely reappear in the next edition of the well-known Deloitte Football Money League, from which they had recently been absent.

“A sum over 200 million euros is nearly a return to the world’s elite. Sure, it’s not Top 10 yet, but it’s clearly a significant step forward,” said sports analyst Jozef Tokos to the Economic Daily regarding Ajax’s latest financial figures.

According to him, Ajax’s success is the result of a combination of several factors: a remarkable sporting achievement, long-term and consistent player sales for high transfer fees, and a renewed awareness of the Ajax brand in the football world. “When these factors come together and the club gets on the right path, it can make rapid and decisive progress,” Tokos added.

Football club as inspiration for investors
Ajax’s example of properly set-up management has even been used in a study by the data company BoldData, which, under the title What companies can learn from Ajax: 6 business lessons, presented six tips that could inspire firms and investors.

One of the six main points is the use of external sources. Current Ajax head coach Erik ten Hag had a tough start, as fans were critical of the fact that he had no prior ties to Amsterdam. “Together with ten Hag and his assistant Schreuder, Ajax also brought in two other employees who were hired purely based on quality – not on traditional club culture or past connections,” the study states.

The future is Toekomst
What is deeply rooted in the club, however, is its youth development, which meets world-class standards. The club’s academy, called Toekomst (meaning “Future”), is essentially a production line for football’s next stars, and gaining entry to this famous academy is akin to a student getting into Harvard.

That’s why it’s crucial for Ajax to continue producing new talent that can be monetized on a large scale in the future. This was confirmed by former Ajax player and 65-time Czech international Zdeněk Grygera in comments to the Economic Daily.

“The club is structured in such a way that even if it misses European competitions for a year or two, it’s not a disaster. The club’s philosophy hinges on selling players to top-tier foreign teams. Of course, participation in the Champions League raises both the price of players and the club’s overall prestige. But even without that, top clubs are always watching Ajax players,” Grygera said.

The former Ajax defender added that the Champions League also brings benefits beyond the financial. “It’s about having your team in the spotlight, competing with the biggest clubs. That increases its visibility among fans in more distant markets or continents,” said the player, who described it as an honor to have played alongside Zlatan Ibrahimović in the early stages of his career.

Leaping past clubs from big leagues
There is no doubt that Ajax is a famous and successful football brand. After all, their four Champions League titles and two additional finals speak for themselves. But can the Dutch club become a global player from a financial or marketing standpoint?

“The Dutch Eredivisie will have a hard time catching up economically with the world’s top five leagues anytime soon. It’s questionable whether that’s even possible in the long run, regardless of the quality of the league. There are simply market limitations, and for example, TV rights in England or Germany are sold for completely different sums,” Tokos explains.

This is backed by hard numbers. For instance, mid-table English club Brighton & Hove Albion ranked 29th in the latest edition of the Deloitte Football Money League, with revenue of 157.4 million euros – largely thanks to commercial income and television rights.

In contrast, Ajax reached “only” just under 92 million euros in revenue for the previous fiscal year. However, the club’s Champions League semifinal appearance means that in the new accounting period, UEFA rewards alone will represent nearly 78 million euros.