Finance and Football Clubs : What Cash Flow Analysis Reveals

Abstract

The precarious position of Football League Club finances has been highlighted by extensive press coverage and has given concern to the Football League. It is our contention that the use of “traditional” financial reporting practices has hindered full understanding and consideration of the causes and indicators of clubs' financial difficulties. The first part of this article considers the objectives of financial reporting, and the view that these are best met by cash‐flow information; the second part reports on the results of an empirical investigation of a sample of Football Club accounts and assesses the informational value of a cash flow approach.

Citation

Webb, B.J. and Broadbent, J.M. (1986), "Finance and Football Clubs : What Cash Flow Analysis Reveals", Managerial Finance, Vol. 12 No. 1, pp. 6-10. https://doi.org/10.1108/eb013556