Finances of Sports Clubs: tips for managers
Our team of experts conducts regular financial audits for sports clubs, providing valuable insights to aid in making sound financial decisions.
During our accounting and financial audits in sports clubs, we notice recurring mistakes that can be avoided. So if you are a stakeholder in a sports club, take a look at our conclusions and see if your club is following the same path!
General Conclusion: Monitor and Periodically Check Club Expenditures
The most important conclusion from our audits is clear: monitor and regularly check the club’s expenses. Especially when you suspect that PR is the priority instead of the budget, and the desire for sports success outweighs hard financial calculations. At times like these, short-term benefits can overshadow the club’s long-term development strategy.
So how to practically manage the finances of sports clubs and avoid bankruptcy?
Practical Tips for Owners, Management Boards, and Sponsors:
- Monitor Players’ Salaries Percentage: Keep a close eye on the percentage of players’ salaries in the club’s budget. If it exceeds 65%, there’s cause for concern, with exceeding 80% increasing the risk of withdrawal problems.
- Implement Real-time Budget Management Tools: Utilize real-time budget management tools to avoid uncontrolled overestimation of the budget and exceeding the planned level of expenses.
- Wisely Manage Budget Growth: An increase in the budget does not always require a proportional increase in spending, especially on players’ salaries.
- Prepare for Financial Challenges: Always be prepared for unexpected financial challenges to ensure the club’s long-term success and sustainability.
Let us remember that well-managed finances build trust among fans, sponsors and investors alike, which may lead to greater financial commitment and long-term cooperation! By implementing these financial management tips, sports clubs can navigate financial challenges effectively and build a solid foundation for future success.
