The Role of the Cash Flow Table in Substantiating Effective Management Decisions in Sports Organizations

The paper deals with the role of the treasury in financing the activity and ensuring the sustainability of a sports organisation, the importance of assessing its ability to generate liquidity and liquidity equivalents, as well as the funding needs of the organisation. At the level of managerial decision-making, the treasury gains more weight, the more the following question arises: How is it that we have high profit margins, but there is never enough money? Sport club managers can fall into the trap of believing that a consistent profit margin or a spectacular increase in turnover guarantees the sufficiency of cash resources. These positive aspects, however, may sometimes prove fatal to the cash resources. In this respect, the treasury represents the basis for determining short-term (solvency) and long-term (financing needs) financial analysis and management indicators, favouring the forecasting of the financial situation of the entity. From the analysis performed in this paper, we consider that the analysis of cash flow is useful for substantiating efficient management decisions by: correlating the profit (loss) with the cash; separating the activities involving cash from non-cash activities; assessing the ability of an enterprise to meet its cash payment obligations; cash flow assessment for future activities (cash-flow strategy).