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RE: LeoThread 2025-03-13 06:13

in LeoFinance7 months ago

Part 6/8:

To truly grasp the financial wellbeing of a football club, one should consider a combination of the three financial statements rather than any single document in isolation. Here are five critical metrics that can indicate overall financial health:

  1. Revenue Diversification:

A well-balanced revenue stream is indicative of a healthy club, reducing risk should one income source falter.

  1. Revenue Growth:

Healthy clubs should ideally experience steady annual growth in revenue over the long term, especially in periods free of pandemic interference.

  1. Wage Structure:

The club's wage cap and distribution must be aligned with its performance and league standing. A balanced wage structure supports team harmony and financial health.

  1. Transfer Effectiveness: