A critical appraisal of the financial management of the Gozo Football Association and Gozitan football clubs

Abstract

PURPOSE: This study explores the financial management of the Gozo Football Association and its affiliated clubs. Gozitan Football is going through a transitional period as it moves from amateur to semi-amateur status. This challenging scenario makes it imperative for these NPOs (non-profit organisations) to upgrade the level of their financial management. DESIGN: Semi-structured interviews have been carried out with four GFA officials, eight Gozitan clubs’ treasurers and two accountants, one from both divisions. An interpretative phenomenological approach was chosen in order to provide insights into the complex issues revolving around financial management in Gozitan football. FINDINGS: A pervading theme was that short-termism and lack of long-term planning characterise the philosophy of Gozitan clubs. This makes them lose sight of the primacy of maintaining financial stability through efficient administration of the GFA’s and the Gozitan football clubs’ finances and long-term planning. It was evident that the respondents were passionate club men but their lack of financial literacy meant that their financial reporting and management left a lot to be desired. CONCLUSIONS: Sound financial management plays a pivotal role in safeguarding any organisation’s financial sustainability. The GFA’s top officials and club officials should upgrade their financial literacy so that they can take decisions and implement policies that can lead to more financial stability and longer-term survival. These policies should revolve around better matching of expenditure to available resources, the consolidation of nurseries and investment in capital projects. These measures can in turn lead to stable sources of income. VALUE: Many of the financial management issues raised in this study are similar to those that all NPOs have to address. Therefore, the recommendations for better financial management put forward in this study can be applicable also to other NPOs.