Financial Crime World

Dutch Football Club Ajax Suspends CEO Alex Kroes over Insider Trading Allegations

##background

  • Newly appointed CEO of Dutch football club Ajax, Alex Kroes, has been suspended by the team’s supervisory board following allegations of insider trading.
  • Kroes purchased more than 17,000 shares in Ajax a week before his appointment was made public on 2 August 2023.

##allegations

  • The supervisory board sought external legal advice, which reportedly indicates that Kroes likely engaged in insider trading.
  • Ajax intends to terminate Kroes’ employment.

##ceo’s response

  • Kroes denied any wrongdoing and plans to seek judgement from the Dutch financial watchdog, the Autoriteit Financiele Markten (AFM), regarding his share acquisitions.
  • He explained that he had purchased the shares in stages between April 2022 and July 2023, ceasing once his position at Ajax was confirmed to maintain transparency.

##ceo’s background

  • 50-year-old Dutch national, Kroes, insists that he bought the shares out of confidence in the club and not for quick financial gains.
  • He had also disclosed his assets to the supervisory board before his appointment.

##board chairman’s statement

  • Michael van Praag, board chairman, expressed the club’s deep disappointment in these developments.
  • “Alex Kroes’ actions are not in line with Ajax’s values,” Van Praag asserted.
  • Timing of his share purchase raises serious concerns and indicates insider trading, which cannot be tolerated within a publicly listed company, particularly when it involves a CEO.

##affected shareholders

  • Shareholders will receive further details about Kroes’ intended dismissal during an extraordinary general meeting.
  • The supervisory board will make the final decision regarding his future with the club.

##previous employment

  • Kroes had to wait to assume his role at Ajax due to a non-competition clause in his previous contract at AZ Alkmaar.
  • His appointment followed Edwin van der Sar’s resignation at the end of the previous season when Ajax finished third in the Dutch league and failed to qualify for the Champions League for the first time since 2009.

##team’s current standings

  • Currently, Ajax sits in fifth place in the Eredivisie, 28 points behind league leaders PSV Eindhoven.