PURPOSE Despite the public’s strong interest in sport, most clubs lack a stable revenue stream tied to their fanbase. Instead, much of their operating budget depends on parent companies and local governments, leaving many with accumulated deficits and capital impairments. This study develops a financial distress prediction model using sport clubs’ financial data and identifies the main determinants of capital impairment to propose improvement strategies. METHODS Financial data from clubs classified under the “Sport Club Operation” sector of the Korean Standard Industrial Classification were collected from 2011 to 2023. After preprocessing, a logistic regression–based prediction model was built and used to analyze factors influencing capital impairment. RESULTS Of the eight independent variables examined, the current asset ratio and working capital to total assets significantly affected capital impairment at the 5% level. CONCLUSIONS Stakeholders in professional sport clubs should focus on securing net working capital by reducing current liabilities rather than merely increasing current assets. To address deficits, clubs must strengthen their internal financial structure, while governments and institutions should provide effective policy support to ease chronic financial distress.
