An Idea on finances

Before i continue im just going to say if your going to post on this thread make it constructive and useful to this topic ie no off topic useless rants that do nothing but make the thread kinda pointless to read.

Now onto business . my idea is from playing the game recently iv gone into the red with liverpool fc after getting a loan from the chairman the season before so yeah. Not great. I just thought that as a request to the board or something the manager would be able to tell/allow the board to lets say take all your remaining transfer money and place that straight into the bank balance as well as allow for all the money taken from sales to be placed directly into the balance for that season to try and keep the club above board and floating bank balance wise avoiding administration as much as possible.

Now i understand this is what might happen under administration anyway but having the option to do it without having to wait for that dreaded message of your club going into administration and you losing, most of the time, your most prized players for cheap having an option such as this i feel would add maybe abit more control as well as options to the human player on finances as well as add some realism i would think not having ever been a real manager in the real world "out there" .

All useful and constructive comments, questions or even answers are and will be appreciated.

thanks for reading

Sergio12

P.S. if this is the wrong area or there would be a better place where i would get better replies just say so as a reply to this thread or private message .

I agree with this. In fact it has ALWAYS (since Arsenal went into the red to build The Emirates, anyway) bugged me in a different way. Let's say I have 2,3,4 or 5 really good seasons - which with AFC isn't exactly difficult. Now, I might have £500m in the bank, or even more - I buy a lot of youth, develop it and sell for a profit - BUT I am still paying expensive loans off. IRL what would happen is the board would step in, pay off the expensive finance (and to a football club, which is a big risk, it would be expensive) and re-state my budgets, which I would be happy with as I'd already have the squad I want, AND the youth for the next 2,3 years at least.

Now I know some people wouldn't necessarily agree with, or want, that, so you IMHO add an option within board room, where you can in effect GIVE your surplus to the board - however much you decide - and lower / eliminate your debt.

Without this what happens, and it REALLY BUGS ME, is the club (if I'm Arsenal) see the profit at the season end, pay a whacking dividend to themselves - sometimes in excess of £70m, and continue to be exposed to massive liabilities. All wrong, and not realistic!

One final thing - I do understand that IRL NO MANAGER would ever willingly reduce his budgets, but for the sake of different wishes of FM players, the option would be nice.

All money does go directly into your bank balance... a section of which is allocated as for transfers, so what do you mean?

Often banks won't allow debt to be repaid early, as it means less money for them.

All money does go directly into your bank balance... a section of which is allocated as for transfers, so what do you mean?

Often banks won't allow debt to be repaid early, as it means less money for them.

The bank will allow early repayment of a load, especially a commercial one, as they make a lot of money from a large loan - such as building a stadium - by acting as an agent in effect, and pulling the credit together from several sources. They effectively get commission for it at the start - which is paid back first.

Also, there would be an early repayment charge - usually a flat fee per year outstanding, or x months interest.

What I meant was, and I only assume the game models it correctly, that the interest rate you earn on effectively your overnight deposit account would be far inferior to what you are charged for a large corporate loan, so there would be a significant net loss between the two rates.

I know this is a bit extreme for a footie game, but FM does like to be thought of as realistic in more than just the match engine / players, to a certain extent.

Maybe I'm just over thinking it - I'd have to look at the actual values over a season, and see if there is a difference is the interest rate you receive and the rate you pay. If not, then it's all irrelevant, anyway.

My admittedly simplified understanding of the situation is:

Banks loan to make money

Banks won't make so much money if you pay it back early

> Banks put the early repayment charge so that they won't lose money by having it paid off early.

Which means you wouldn't gain anything by paying it off early, as you'd be penalised by the same amount as the futureinterest would cost.

My admittedly simplified understanding of the situation is:

Banks loan to make money

Banks won't make so much money if you pay it back early

> Banks put the early repayment charge so that they won't lose money by having it paid off early.

Which means you wouldn't gain anything by paying it off early, as you'd be penalised by the same amount as the futureinterest would cost.

Kind of, but with a long-term commercial loan(s), such as those in place at Arsenal, with a term of 20yrs+, the penalty would be far less than the actual interest, or cost of the loan, over such a long term, where typically you'd be paying 7%+, even if you are rated AAA - and NO FOOTBALL TEAM in the WORLD has that kind of rating, due to the inherent risk of the business, so they'd be paying 12-15, maybe even more.

Like I said though, maybe I'm taking the whole thing too far, AND too personally, as a gooner!

right, as an answer to interwolfs first post, what i mean is currently my board place 20% of all transfer sales into my transfer kitty even though i am in the red and would rather have the board allocate me no transfer money fro that season so in essence make that 20%, 0% by my request as an option as most of the time if the board does ever take it down to 0% its usually too late for any real use.

i'm starting now after writting this seeing that my idea is pretty much invalid due to the fact the money does go directly into the bank balance but still i do see a reason for such an option or an option as Highbury has already mentioned to pay off certain debts which would relieve the club's expenditure on interests for there loans/debts. Even though this kind of option wouldn't as much be in reality requested by the manager but more as a board taking a decsion and asking the manager on his own opnion on the matter but this is a game so....