- Dec 11, 2020
You are ignoring cashflows. Profit is good, but cashflow is far more important.Sultan is absolutely spot on here. It really is a ridiculous take on the whole picture. Some people believe that a club saddled with huge debt is in healthier state than a debt free one.
Loans are always used by businesses to sustain cashflows. A debt-free club is not necessarily healthier than a club in debt. If that club runs out of cash, it will go into liquidation.