KSP Polonia Warszawa's Financial Problems – Analysis of Liquidity and Debt

Journal of Entrepreneurship Management and Innovation (JEMI), Volume 9, Issue 1, 2013: 135-155

21 Pages Posted: 19 Mar 2014

Date Written: March 17, 2014

Abstract

Financial liquidity is one of the most important areas of running business operations. Each entity must keep it at an adequate level. Lack of financial liquidity is the main factor leading to bankruptcy of companies. The analysis of liquidity and debt verifies the ability of an entity to pay current liabilities and also confirms the company’s ability to survive on the market. Based on the results of the analysis of liquidity and debt the management should therefore prepare liquidity management strategy. The article is based on the available financial statements of KSP Polonia Warszawa Sportowa Spółka Akcyjna and presents an analysis of its liquidity and debt. The results of this analysis for years 2008-2010 were very alarming and indicative of the upcoming bankruptcy of the club. In July this year, an application was filed with the court confirming insolvency of the club and, by virtue of a decision issued by PZPN (Polish Football Association), Polonia Warszawa, so far playing in the Ekstraklasa (Polish top division), will start the next season in the 4th division. It will take the club many years to regain its position.

Keywords: sports club, KSP Polonia Warszawa, financial problems, football division, liquidity, debt

Suggested Citation

Marcinkowska, Elżbieta, KSP Polonia Warszawa's Financial Problems – Analysis of Liquidity and Debt (March 17, 2014). Journal of Entrepreneurship Management and Innovation (JEMI), Volume 9, Issue 1, 2013: 135-155. Available at SSRN: https://ssrn.com/abstract=2410485

Elżbieta Marcinkowska (Contact Author)

AGH University of Science and Technology ( email )

30 Mickiewicza Av.
Kraków, 30-059
Poland

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