Sports Clubs

Executive Summary of Payment Behaviour in the Sports clubs Sector

Based on a detailed evaluation of 35 companies within the Sports clubs sector, the current financial landscape demonstrates a remarkably disciplined payment culture. As a senior analyst specialising in UK credit risk, I observe that the sector’s payment behaviour is robust, characterised by a tight adherence to standard commercial terms. The central tendency metrics reveal a high degree of stability; the average payment time stands at 31.8 days, whilst the median is slightly lower at 31 days. This negligible difference between the mean and median suggests a normal distribution of data, indicating that the sector is not plagued by extreme delinquency or skewed by a minority of erratic payers. The standard deviation of 10.7 days further reinforces this view, pointing to a consistent operational rhythm amongst the analysed entities.

When we analyse the distribution and quartile data, it becomes evident that the majority of businesses in this sector favour prompt settlement. A significant proportion of the sample—48.6%, representing 17 companies—settles debts within the 'Fast' bracket of 0-30 days. Furthermore, the interquartile range of 15 days (spanning from 24 to 39 days) highlights a concentration of activity around the standard 30-day invoice term. It is encouraging to realise that there are zero companies falling into the 'Very Slow' (61-90 days) or 'Critical' (90+ days) categories regarding their average payment speeds. This absence of severe delinquency suggests that credit control departments within this industry are effective, or that liquidity is generally sufficient to meet short-term obligations without significant friction.

However, a granular examination of the performance breakdown reveals subtle nuances that might be missed if one were to only centre on company averages. Whilst no individual company averages a payment time exceeding 60 days, the transactional data indicates that 8.5% of actual payments differ from the entity-level averages and are settled over 60 days. Additionally, 16.8% of payments are classified as 'late' relative to agreed terms. This discrepancy suggests that whilst the organisational intent is to pay promptly, administrative friction or specific cash-flow timing issues may cause sporadic delays. Nevertheless, the presence of top performers paying in as little as 4 days proves that high-velocity capital turnover is achievable within the sector.

Geographically, the data set is heavily weighted towards London (10 companies) and the North West (8 companies), comprising over half the sample. Amongst the remaining regions, representation is thinner, yet the payment discipline appears uniform across these boundaries. In conclusion, the Sports clubs sector presents a low-risk profile for creditors. The tight range between the fastest payer (4 days) and the slowest payer (57 days) indicates a predictable ecosystem where credit risk is manageable. Stakeholders should continue to monitor the 16.8% late payment metric, but overall, the evidence favours a positive outlook for trade credit within this industry.