Financial crises

In the summer the board gave me 50mil after i set the lowest expected performance.

By Jan I am performing very well, much better than expected.

In Jan I spend the 50 mil to help win the league.

Start of march I am second and going well the players I bought are all performing well. I am under my wage budget and the board are generally happy with my performance.

Then suddenly I docked ten points for admin, 30mill debt, and a transfer embargo. The board say they will sell any player to save the club.

What will happen to the club? will my my best players be sold? Will I be sacked?

What I don't understand is if the club could not afford me spending the 50mill on players the why on earth did they let me

I set the expectations to the lowest and have not asked for any extra money.

If bids from other clubs come in your chairman will accept them!

I also have a Liverpool administration question. After being at Grasshopper for several years, I took over at Anfield. My question is, what's the magic number for entering into administration? I'm a little over £20 million in debt right now, but I've made future transfers that will cover that the second the transfer window opens in July (I made a big purchase at the end of the January window). It's mid-April now; I'm not in administration, have rallied the team from 14th place to 5th, but I keep getting e-mails about the financial crisis and about how the team's going to be sold. I'm just outside of the Champions League, and can probably get there...but if I'm docked ten points it won't happen. Am I screwed?

Liverpool went in administration on my West Ham game in 2014/15 and Everton did as well (in the same season! and avoided relegation by 1 point!) anyways:o So I snapped up, S.Gerrard £3m and F.Torres for £15m!, and even in 2018/19 they are still £130m in debt!

Update: Its a month later. An email says that the receivers have been "appeased" and the transfer embargo has been lifted. I am still been deducted 9 pts. This means that instaed of coming close to winning the league i am battling for the champions league spot. I am still 36mill debt.

Hopefully I won't be sacked in the summer and if none of my players are sold I think I can win next seasons league.

Magnakai Haaskivi if you are getting emails about a financial crises, if your losing 3-5mill a month and your a players are saying that they don't mind been sold to help the crises then you will probably enter admin very soon.

I'm not SPECIFICALLY getting e-mails about it, there's just mention that "such and such player may be sold due to the impending financial crisis." I'm hoping to beat Barcelona in a Champions League game to stave off the administrators; as long as I can get to the transfer window I'll be okay.

some chairmen can be overambitious. in my current save the chairman of aston villa just offered me the managers job with a good transfer budget (11 million) but the bank account is -900000 so if i were to make singings the club would be in trouble.

remember to keep things sustainable

On my Chelsea game Abrahmovic let me have 150 million and I have stayed in the budget and wage budget but on the inbox it keeps on saying " .... is not one of the clubs top earners, but may have to go if the clubs reported financial crisis worsens.

Final Update:

End season lost the Uefa Cup final 13-12 on penalties (gotta be a bug there). I successfully qualified for champions league by coming 3rd.

Annoyingly I would have won the league by two points if I was not deducted 9 points.

At the end of the season I was -31mill. At the seasons end money from my final position, uefa cup money, tv money, chairman loan and chairman investment brought my balance up to +50mill. Start of the new season I have a transfer budget of 32 mill. I didn't lose any top players thru forced sales. I am confident of winning the league next season without spending any transfer money (although a bit lees fun) thus securing the financial stability of the club for the future.

P.S. amazingly after all the financial crises The board still offered my a two year extentsion on my contract.

What I don't understand is if the club could not afford me spending the 50mill on players the why on earth did they let me

You sound like David O'Leary.

Seriously though...it's bad luck, but I guess the lesson is to be more careful in future. It's not unrealistic though as Leeds showed.

Alright, I'm into May now and am losing cash. However, I'm also in the Champions League (I'm to the finals if I beat Chelsea) and I'm in the FA Cup final against Everton (I think I get cash whether I win or lose that one). I don't really care about the trophies at this point; I want the prize money.

The way I see it, June (where I don't play any games) is going to be the hardest month to endure. Once July 1st hits I'll get the cash to offset the transfer I made (I stayed within the transfer budget I was told I had, bought Ashley Young, and then realized I didn't really have that budget; ironically, Young's injured now), and I should be set.

I'm kind in this situation as well. I have very little transfer budget but a massive wage budget, but knowing how FM works I have constantly tried to reduce the wage bill without majorly reducing the quality of the squad. The club is still losing a lot of money a month but breaks even over a season.

You have manage the finances to balance the books yourself as the board are very poor at budgeting, always have been in just about every version. In my current game i'm only using 60% of my wage budget and i'm trying to get down to 50% to ensure staying in the black.

I had over £80mill transfer budget remaining in my Everton game, with only £30mill in the bank balance. Common sense would tell me that spending all of that transfer budget would put me £50mill over and into debt. So i only spent £20mill and kept £10mill to tide me over until the European games came around.

I hate to say it, but where did you think the club would get the money from to clear the debts? Financial management is a big part of FM, especially at clubs like Liverpool and Bayern Munich with big loan payments and in Bayerns case, high wages. Only at clubs like Barcelona and Real Madrid with big gates and huge merchandise can you make a monthly profit worth shouting about.

Premier League management is about financial survival, spend within your means, as Liverpool have done before Hicks and Gillette saddled them with a massive debt. You should be looking to slash your wages, keep your squad trim and keep within your budgets!

Spending what you haven't got is just daft

I had over £80mill transfer budget remaining in my Everton game, with only £30mill in the bank balance. Common sense would tell me that spending all of that transfer budget would put me £50mill over and into debt. So i only spent £20mill and kept £10mill to tide me over until the European games came around.

I hate to say it, but where did you think the club would get the money from to clear the debts? Financial management is a big part of FM, especially at clubs like Liverpool and Bayern Munich with big loan payments and in Bayerns case, high wages. Only at clubs like Barcelona and Real Madrid with big gates and huge merchandise can you make a monthly profit worth shouting about.

Premier League management is about financial survival, spend within your means, as Liverpool have done before Hicks and Gillette saddled them with a massive debt. You should be looking to slash your wages, keep your squad trim and keep within your budgets!

Spending what you haven't got is just daft

Fair enough. My first team was Grasshopper, and after I cleared some dead weight they were running in the black pretty solidly for a good three seasons; I got kind of complacent about the transfer budget because I didn't really want to go into debt. When I got to Liverpool, with new owners, I saw that they were in debt but figured it was under control, so I continued with the same relaxed attitude towards finances...which killed my budget.

The transfer money allocated, though, usually includes the money you're expected to make by the end of the season; at Grasshopper, when a big transfer put me in the red at the beginning of the year, I'd always have us back to black by the end. Without an accurate idea of how much Liverpool would make by year's end (and, again, a little laziness on my part), I kind of thought that a £20 million transfer budget was reasonable, and that while we didn't have the money NOW, we would make it up by season's end.

To be honest if my chairman tells me I can spend x amount of money then I expect to to be able to spend that without having to worry about admin.

The budget is based on expect incomes from expected results. Now if I do far better than expected, which I did, I would expect my club to be able to meet costs. I highly doubt top premier managers really have a clue about the club finances. The chairmen tells them what they can spend based on expectred results.

Admittedly I probably should have looked at the overall balance before spending the money but that balance is deceptive as it decrease rapidly by the end of the season and then increaes rapidly at the start of the next season when the club has recouped money prize money and tv money.

I think the lesson here is for everyone to look at the finances themselves and set their own wage and transfer budget.

That's right, I should be getting a Champions League TV check sometime in May, which should probably float me.

I'm more up-to-date on my pretend team's finances than my own at the moment.

Man utd lose around 7mil a month with there loans. in april first season and just gone into the red. lil scared

One of the first things i do at a club is squad screen > view contract.

1. Any old timers over 30 are booted out and youngsters on 5-10k a week signed to replace them. Especially if they're on 3-4 year contracts and big wages.

2. Anyone earning over 40K is looked at, if they aint integral to my team, they're gone, regardless of who they are.

3. Any non-essential backup players earning over 25k a week are sold and replaced with youngsters.

3. Good youngsters are signed so i can get them on realistic small contracts instead of crazy £120,000 a week deals.

I usually bring the wage budget down to a sensible level, hopefully so Gate Receipts + Merchandise = Wages Spent.

'To be honest if my chairman tells me I can spend x amount of money then I expect to to be able to spend that without having to worry about admin' -LFC Rule.

Sorry mate, but I don't get it. In theory you have a point. It's a case of 'here's the cash, leave the worries to us'...and that's fair enough to a point. But there's the finance screen for a reason, and let's face it, it's not hard to look at the balance and deduct 50 mil. Saying 'It was offered so I'll spend it' is a bit like spending all your wages and taking out more credit, knowing you have no chance of meeting even mininmum payments - Yes, it's been done, and by a lot of people, but it never makes any sense and ultimately, you had the final yay or nay.

Other things to look at, though: what is the chairman status? IRL, the finances of the Americans are looking suspect. The game reflects the RL situation...in this case perhaps a little too well.

Has the club been put up for sale or financial support withdrawn? Has a board member left?

Hopefully, a bit of success (and qualifying for CL) will keep things going, but in the meantime, offload old/squad players, think about cashing in on top stars if you have no other choice (while it's still your choice and you can get a decent price; you don't want it to start becoming a fire-sale), and start thinking about finances for yourself.

After all, IRL, Arsenal keep telling the world there is money to be spent, despite the debts/loans being serviced...yet Arsene Wenger keeps the purse closed for the most part. Yes, it affects success in terms of trophies won, but what's the point in winning something and bankrupting the club in the process?

So I got out of my crisis (won the CL, won the FA Cup, and am actually turning a very, very tiny profit); what's the best way to AVOID getting into a crisis and financial plan for the year? Obviously I need to do that myself, so where should I start looking to figure out what my real wage and transfer budget should be?

Its not always a bad thing to be making losses, the key is to be able to afford that debt. Most Premier League clubs are making losses and in debt, Everton my favourite club are in the red by over £30mill in real life, but that debt is sustainable based on future income and predicted expenditure.

Your ability to manage the wagebill is the only effective tool you have to control your finances directly. I consider a weekly wagebill of £1mill to be excessive, but not uncommon at the biggest sides like Barca, Real, the Milans, Juve etc. My current Barca side is £1mill but i hope to reduce that considerably once i've gotten rid of an ageing Puyol, Xavi and some fringe players.

What is your current wage bill? If it's anywhere near £1mill you should look to reduce that instantly as it's not manageable with crowds of 45,000 a week. I turn a £5mill profit every month, on the basis of CL football bringing crowds of 80,000 to Camp Nou with ticket prices of £52 and massive merchandise links with Japan and the US.

You should be looking at a weekly wage bill of £700-800k a week, less if you can. That'll give you a yearly bill of between £35-45mill. The Loan repayments look like they're gonna come in at £35mill ish over the year.

Season tickets and TV Revenue should bring you enough over the year to cover the wagebill if you aim for between £700-800k a week. As for the monthly debt payments, Gate Receipts from the CL, FA, Carling and League should be more than enough to cover those. Prize Money should take care of the other costs you incur through the season.

So to some up, if you aim for a wagebill of 700-800k and leave around 10-20mill as a balance, you'll plod along nicely.

Managing mnutd is easy even with the absolutly massive debt, i sold 5 of the first team players at around £30M each (can be named if wanted), i then spent about £50M on youngsters, with previous bank account money added to the pot made by player sellings this leaves me with £100M in the bank, the board announces that the stadium will be expanded this means that old trafford will have a capacity of 100,000 this should help with wages which have been drastically reduced due to the player sellings with most of the players on 90k + a week now gone the budget is now at £1.1M a week. Bank balance raises each season due to selling any players that reach the age of 25 - 26 unless they have been good servants to the club

If bids from other clubs come in your chairman will accept them!

hehehe reminds me of the days when my mate would put his club into a financial crisis and I would rob him blind! lol

Its not always a bad thing to be making losses, the key is to be able to afford that debt. Most Premier League clubs are making losses and in debt, Everton my favourite club are in the red by over £30mill in real life, but that debt is sustainable based on future income and predicted expenditure.

Your ability to manage the wagebill is the only effective tool you have to control your finances directly. I consider a weekly wagebill of £1mill to be excessive, but not uncommon at the biggest sides like Barca, Real, the Milans, Juve etc. My current Barca side is £1mill but i hope to reduce that considerably once i've gotten rid of an ageing Puyol, Xavi and some fringe players.

What is your current wage bill? If it's anywhere near £1mill you should look to reduce that instantly as it's not manageable with crowds of 45,000 a week. I turn a £5mill profit every month, on the basis of CL football bringing crowds of 80,000 to Camp Nou with ticket prices of £52 and massive merchandise links with Japan and the US.

You should be looking at a weekly wage bill of £700-800k a week, less if you can. That'll give you a yearly bill of between £35-45mill. The Loan repayments look like they're gonna come in at £35mill ish over the year.

Season tickets and TV Revenue should bring you enough over the year to cover the wagebill if you aim for between £700-800k a week. As for the monthly debt payments, Gate Receipts from the CL, FA, Carling and League should be more than enough to cover those. Prize Money should take care of the other costs you incur through the season.

So to some up, if you aim for a wagebill of 700-800k and leave around 10-20mill as a balance, you'll plod along nicely.

So I'm sitting with a bank balance of £75m right now. Apparently, even though I transferred about £25m worth of dead weight players out (the former manager bought a lot of guys that weren't needed), the chairman saw it fit to give the club a £35m cash injection. So, the financial crisis averted was averted by me, but we'll be more than fine thanks to him.

I'm probably not going to be able to get the wage bill to the £800k level this season; there're simply too many players that are filling vital roles getting paid too much money. I have started cutting wages of new transfers in, though (I'm signing kids on the cheap to replace adults who weren't as good but were, in some cases, ten times as expensive); even with that, though, I've only dropped my wage bill to about £1m (down from about £1.2m). I figure that'll save me about £10m a year, which should help out.

So my question: if the board's approved a £32m transfer budget, and I've got £75m in the bank and a yearly wage bill (as it stands) of about £52m, than my transfer budget is really only about £23m, right? I need another striker and could use some defensive depth, and I'd also like to by some young kids for the reserve squad, but I don't want to get myself in the situation I was in last year where one transfer essentially screwed my budget for the year.

EDIT: I'm realizing now that I'm not factoring my loan payments, which means that I'm not in as good of shape as I'd thought but will be alright if I can stay in the Champions League, FA Cup, and League Cup for awhile.

So I'm sitting with a bank balance of £75m right now. Apparently, even though I transferred about £25m worth of dead weight players out (the former manager bought a lot of guys that weren't needed), the chairman saw it fit to give the club a £35m cash injection. So, the financial crisis averted was averted by me, but we'll be more than fine thanks to him.

I'm probably not going to be able to get the wage bill to the £800k level this season; there're simply too many players that are filling vital roles getting paid too much money. I have started cutting wages of new transfers in, though (I'm signing kids on the cheap to replace adults who weren't as good but were, in some cases, ten times as expensive); even with that, though, I've only dropped my wage bill to about £1m (down from about £1.2m). I figure that'll save me about £10m a year, which should help out.

So my question: if the board's approved a £32m transfer budget, and I've got £75m in the bank and a yearly wage bill (as it stands) of about £52m, than my transfer budget is really only about £23m, right? I need another striker and could use some defensive depth, and I'd also like to by some young kids for the reserve squad, but I don't want to get myself in the situation I was in last year where one transfer essentially screwed my budget for the year.

EDIT: I'm realizing now that I'm not factoring my loan payments, which means that I'm not in as good of shape as I'd thought but will be alright if I can stay in the Champions League, FA Cup, and League Cup for awhile.

how many players does your first team have? Maybe try and sell a few more, you could buy some players with your transfer budget but you will have to do well in the competitions to get the money back should be fine and see how your doing by january, if not good then sell a player then, dont be afraid to spend

So I'm sitting with a bank balance of £75m right now. Apparently, even though I transferred about £25m worth of dead weight players out (the former manager bought a lot of guys that weren't needed), the chairman saw it fit to give the club a £35m cash injection. So, the financial crisis averted was averted by me, but we'll be more than fine thanks to him.

I'm probably not going to be able to get the wage bill to the £800k level this season; there're simply too many players that are filling vital roles getting paid too much money. I have started cutting wages of new transfers in, though (I'm signing kids on the cheap to replace adults who weren't as good but were, in some cases, ten times as expensive); even with that, though, I've only dropped my wage bill to about £1m (down from about £1.2m). I figure that'll save me about £10m a year, which should help out.

So my question: if the board's approved a £32m transfer budget, and I've got £75m in the bank and a yearly wage bill (as it stands) of about £52m, than my transfer budget is really only about £23m, right? I need another striker and could use some defensive depth, and I'd also like to by some young kids for the reserve squad, but I don't want to get myself in the situation I was in last year where one transfer essentially screwed my budget for the year.

EDIT: I'm realizing now that I'm not factoring my loan payments, which means that I'm not in as good of shape as I'd thought but will be alright if I can stay in the Champions League, FA Cup, and League Cup for awhile.

Crikey, 1.2million a week!

That's a fast road to financial ruin at a premier league club

Your logic is sound enough, you can figure in wages based on your current balance and spend what you you have left in theory, like you have done. Or you can factor in future incomes and spend that way.

I've never seen any material on how the game works out your transfer budget, but im led to beleive that theres little logic behind it, based on games where i've been given my entire balance to spend, more than my entire balance and in 1 extreme case, over 40million more than my balance!

Crikey, 1.2million a week!

That's a fast road to financial ruin at a premier league club

Your logic is sound enough, you can figure in wages based on your current balance and spend what you you have left in theory, like you have done. Or you can factor in future incomes and spend that way.

I've never seen any material on how the game works out your transfer budget, but im led to beleive that theres little logic behind it, based on games where i've been given my entire balance to spend, more than my entire balance and in 1 extreme case, over 40million more than my balance!

im guessing the 40M one wasn't Man City with a tycoon chairman