Superliga club Brøndby has revealed plans for a major capital increase to aid stadium renovations which it says are needed if it is to offer the best fan experience in Danish football.
The capital city club, which is listed on the Copenhagen Stock Exchange, said a general meeting on April 2 will seek authorisation from shareholders for a capital increase with pre-emptive rights for the company’s shareholders which will seek to raise around DKK 100m (£11.7m/€13.4m/$15.2m).
The scheme replaces an announcement made last year to increase the company’s share capital by a cash capital increase without pre-emptive rights for existing shareholders with a total amount of around DKK 15.6m.
Brøndby Stadium has a current capacity of 28,000 and first opened in 1965. The club said the funds are needed to renovate the south side of the stadium, as well as add new lounge facilities for commercial partners. The club is also targeting further investment in its youth system and other sporting aspects.
Brøndby chairman Jesper Møller said: “It is clear today that the south side (pictured), and perhaps also parts of the north stand, must replace their concrete elements after almost three decades of faithful service. It is a replacement that requires a significant investment and that is one of the reasons why we want to raise additional capital.
“At the same time, we now have a great desire to expand our lounge capacity, since we have never done better than we do today commercially. We can hardly push more partners into our current lounges, and we feel that we can accommodate almost 2,500 lounge guests. Since 2014, Brøndby IF has almost doubled its revenue from partners, and if we are to continue the great commercial growth, then we need to expand our current lounges.”
Brøndby said that if the scheme is given the green light in April the board will work towards the capital increase being completed by the end of June. It added that Brøndby IF still expects a profit before tax for 2018 of between DKK 10m and DKK 12m.
Møller said: “Since the establishment of Strategy 6.4, we have invested significantly in the entire fan and partner experience at Brøndby Stadium, among other things through investments in the Fanzonen, Family Lounge and in our partner lounges.
“In Vestegnen we are favoured by an already very strong fan culture and loyal partners, but we are also aware that it requires ongoing investments in the facilities if we are to maintain that support. It is important for Danish football development that clubs are not afraid to invest in facilities for fans and partners, as they are the foundation of everything we do. We must all work to make it as attractive as possible to get to the stadium and watch football, whether for fans or partners.”
Image: Tøndemageren
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