1st Edition

Finance for Sport and Leisure Managers An Introduction

By Robert Wilson, John Joyce Copyright 2008
    174 Pages
    by Routledge

    176 Pages
    by Routledge

    Sport and leisure managers need to understand the financial side of their industry to offer the most cost-effective facilities and to make sound business decisions. However, to the non-expert the language and practice of finance is often bewildering and perceived as complicated, difficult and impenetrable. This textbook guides the reader through the maze of financial terms and concepts, illustrating theory with examples drawn specifically from sport-based contexts to make this the most relevant, transparent and helpful handbook for students of leisure management available.

    Written by experts in accounting and sport management, this book enables readers to work through the subject at their own pace, with case studies, worked examples and self-tests to ensure students can apply their knowledge to industry-specific situations. Ideal for students on sport and leisure management courses, this book will also be valuable to practising managers who need a quick-reference guide to everyday financial questions.


    The Introduction will set out the context for the role of financial management in the sport and leisure business. Some basic concepts such as the ‘virtuous circle’ and the necessity for business solvency are outlined in order to provide a grounding for the material to follow. The Introduction will also briefly summarise the purpose of each chapter.

    1. The context of financial accounting.

      • The conceptual framework of accounting
      • The identification of users groups
      • Information needs
      • Statutory requirements

    Accounting is not just about numbers. The identification of the users of the accounts and their needs provides the reasons for the accounts. Without an understanding of why the accounts are being prepared the numbers will be meaningless.

    1. The ‘rules’ of financial accounting

      • Accounting concepts, bases and policies;
      • The Double Entry Rule
      • Dual Aspect Concept
      • T Accounts

    This chapter will explain the guiding rules and principles that accountants use when they do their jobs. It will explain the accounting conventions and show how they are applied.

    1. Accounting Adjustments likely to be met by Sport and Leisure Managers.

      • Acquisition and disposal of assets
      • Depreciation
      • Loan Interest
      • Discounts
      • Bad debts
      • Returns

    Managers need to know the treatment and impact of their decisions and policies in the accounts. The most common ‘routine’ policy decisions will be explained and illustrated to show future managers the implications of their actions and how they should be accounted for.

    1. Constructing Final Accounts

      • The inter-relationship between the T accounts and the final accounts
      • Cost of sales
      • Mispostings
      • Accruals
      • Prepayments
      • The conceptual framework of accounting

    The determination of the balances and adjustments needed for inclusion in the final accounts will be explained. The student will be guided through each process from the initial recording of transactions to their inclusion in the published statements.

    1. Financial statements

      • The Balance Sheet
      • The Profit and Loss Account
      • Cash Flow Statements.

    The need for each of the statements, and their inter-relationships, will be explained. The prescribed formats will be illustrated and students will be made aware of the need for the development and final production of the statements. The need to fulfil statutory reporting obligations and the requirements of stakeholders will be explained and illustrated in relevant contexts.

    1. Analysis and interpretation of financial statements.

      • Ratio Analysis;
      • Profitability
      • Liquidity
      • Defensive Position
      • Return on Capital Employed
      • Growth

    Key role of any manager is to interpret data. This applies to financial data too! Another role of the manager is to control the organisation; performance measurement is therefore essential. The ability to interpret financial statements and monitor performance are skills that all managers will need, The reader will be guided through the compilation and interpretation of key statistics and indicators for a variety of organisations and contexts.

    1. Budgeting theory and budget compilation.

      • The budgeting process
      • Preparation of budgets
      • Continuation budgets
      • Incremental budgets
      • Decremental budgets
      • Zero based budgets

    The budgeting process is of paramount importance to any organisation. The production of budgets and the central role that they play in the planning and control of organisations will be fully explained and illustrated. The strategic and operational consequences will also be covered.


    Robert Wilson, John Joyce