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RE: LeoThread 2025-03-13 06:13

in LeoFinance7 months ago

Part 5/8:

The cash flow statement tracks the movement of cash in and out of the club during the year, differing from the income statement in that it accounts for the timing of cash transactions. Cash inflows (like ticket sales or sponsorships) may not always be received instantly, nor will costs always be paid immediately, especially concerning player transfers.

The importance of this statement has amplified over recent years, particularly due to pandemic-related financial strains where cash reserves dwindled while obligations remained. Many clubs struggled with zero match day income while still facing payroll and operational costs. This led to turmoil and public appeals for salary cuts from players.

Key Metrics for Financial Health