Interest Payments Inquiry

Folks,

I've done a search, but what I've found doesn't seem to answer my question directly. Maybe one of you folks has an answer?

In 08, if a team had "insecure" finances, on the information screen, it would list any debts the club may have been carrying and for how long the club would need to make repayments of a certain amount. (3k until June 2011)

In 09, I assumed control of Stafford (BSN) who had finances listed as "insecure". I checked the information screen and didn't see any outstanding debts needing repayment.

On the finances screen, it showed that Stafford was in the red by 1.2 M USD. I finished up my three matches for the season. In the offseason, I reduced the wage budget from 9K per week to 4K per week by restructuring contracts and offloading unnecessary players. Because we didn't have any matches, we continued to lose money.

The amount the club ran in the red increased to 1.4 M USD. I checked the income for the first two months of matches and found that it was higher than my wages and match related costs. However, one line item confused me...interest payments.

This line item indicated that I was spending 7K week on interest payments. I have no idea where this is coming from because the information screen doesn't list any debts. Because I am spending approximately 30K monthly on this, I don't know if I will ever make a profit in the BSN.

I can't pick up many players for 50 USD weekly wage which is what I'm limited to. As it is, my entire club only has 18 players that aren't grayed out (I only have a senior team). My club's wage average is 200 USD weekly.

Has anyone managed a club with insecure finances and can explain this line item and how it works? I'd love to know if there is a light at the end of the tunnel as my Board has determined that my minimum finish is "contending for promotion" and two of my 3 ST's got injured in the first 2 matches of the season.

i may be wrong here but the interest payments you paying are because you have a overdraft with your bank of 1.4m, so you dont have any outstanding loans because one has not been set up with the bank, you just have a big fat overdraft

some chairman might manage the debt by either paying it off, or getting a bank loan (then it would appear) some (mosty) just let the club go into admin

Yeah, it's a great way for banks to make more money - charging people who can't afford to pay it back