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:
- Revenue Diversification:
A well-balanced revenue stream is indicative of a healthy club, reducing risk should one income source falter.
- Revenue Growth:
Healthy clubs should ideally experience steady annual growth in revenue over the long term, especially in periods free of pandemic interference.
- 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.
- Transfer Effectiveness: