At the end of this chapter readers will be able to:

understand the factors (both contextual and internal) that cause sport enterprises to experience financial instability

explain why an increase in revenue and/or assets can often be insufficient to deliver sport enterprises a healthy bank balance over time

identify examples of financial mismanagement using a range of financial reports and documents

recommend what remedial action needs to be taken once an unfavourable diagnosis of a sport club's financial affairs has been reported.