AJAX 18/19: BENEFITS AND RISKS OF A MAGICAL SEASON

In the world of sports, financial success is, in 99% of cases, closely linked to success on the field: the ability to increase sales, visibility, and revenue grows exponentially when an unexpected result is achieved. If this result is reached in the most important and widely followed club competition in the world, the financial returns will undoubtedly be impressive.

The 2018/19 Champions League campaign of Ajax, which saw the Amsterdam team reach their first semi-final in 22 years, is already providing the Dutch club with the opportunity to make huge profits. These profits are based on UEFA prize money, player trading, and the increased value of the club’s shares on the Dutch stock exchange.

The first aspect, the most obvious, relates to the financial rewards offered by the European federation to clubs based on their performance. Reaching the semi-finals guarantees Ajax at least €65 million in prize money, bringing them close to what they earned over the previous 10 years combined (€80 million).

The second source of income, the one most often talked about in the media, is linked to capital gains. Ajax is highly likely to sell their star players for a significant sum. Midfielder De Jong already has an agreement to move to Barcelona for €75 million, while 19-year-old defender and captain De Ligt is the subject of interest from major European clubs, and a bidding war is expected in the summer.

The full financial effects of these transfers won’t be realized until the end of the next season, as capital gains affect the following year’s accounts. However, given the potential of these players and the fact they were acquired for free, it’s expected that these sales will be major financial wins for the Dutch club.

Finally, there’s the profit linked to the value of Ajax’s shares on the Dutch stock exchange. After their victory over Juventus, the stock price surged, reaching a historic high of €18.70 per share, up almost 10% from the previous day’s closing price, with a market capitalization of €342.8 million. A similar spike occurred after their equally extraordinary win at the Santiago Bernabéu against Real Madrid, demonstrating how results have immediate effects on the financial situation of a sports organization.

Although this moment seems like a dream for everyone involved with Ajax—from players to fans to management—the most difficult part now lies ahead. Just two years ago, Monaco, after a similar Champions League run, reached the semi-finals and then dismantled their squad, selling off their most prized assets to the highest bidder. Now, after just 24 months, they find themselves in a precarious sporting and financial situation, struggling to avoid relegation in Ligue 1 due to a series of unsuccessful investments.

The managerial decisions over the coming months, including the likely sale of some of Ajax’s key assets and the effectiveness of subsequent reinvestments, will be crucial to ensuring that this extraordinary season has long-term continuity, both from a sporting and financial perspective.