points deducted?

Why is this happening? in 2012 West Ham gets 9 points deducted. what is the regulation? thank you

they must have gone into administration.

anyone cares to explain what that is?

Basically their finances are so poor that administrators are brought in to run the club. In real life this has happened to Portsmouth recently. The administratore come in to sort out the club finances, selling players chopping wage bills and managing club debts. In real life it can see the club going into liquidation and closing down, but this will not happen in FM.

The points deduction is a penalty for the club being run so poorly financially.

This is a very basic explanation, and if anyone else wants to elaborate, feel free.

so when should i start worry for my team? for example when once i went to red, i got an unexpected gift loan and saved me. when is the threshold of putting you in admin?

Basically if you have more debt than estimated value of the club. The punishment is 9 points in the Prem and 10 points in the Football League.

That's all? My team is valued at 156M (Hull) and it is not possible that i can get that much in debt! how did they manage that

That's all? My team is valued at 156M (Hull) and it is not possible that i can get that much in debt! how did they manage that

By not paying their tax bills. The Tax Man is the one who can pull the plug.

The rule is their to stop teams from spending money they don't have to gain advantage over those who live within their means.

By not paying their tax bills. The Tax Man is the one who can pull the plug.

The rule is their to stop teams from spending money they don't have to gain advantage over those who live within their means.

In real life...

Not just the tax man (HMRC). Any creditor who wants to get paid can call in the administrators. The danger in doing so is that they won't get the full amount.

For example, Crystal Palace owed money to HMRC and a loan company called Agilo. It was Agilo that demanded the club be put into administration.

Also, your debts don't need to be more than the value of the club. If you are overdue with payments and are unlikely to be able to raise the money quickly, you are in danger.

Since a few of you know about it, is it possible for an FM team to go bust? Like could they be thrown out of the Football League? Like Gretna in Scotland..

Since a few of you know about it, is it possible for an FM team to go bust? Like could they be thrown out of the Football League? Like Gretna in Scotland..

Its not possible due to licensing regulations.

In FM there would be a takeover, the club would take out long term loans, get points deductions. Relegation would probably follow until they dropped out of playable league in the most extreme cases.

Administration is just a safety zone sort of, in order to stop you entering liquidation and going out of business.

Whilst in some cases a club with go out of business after entering administration, it's generally a way for the club to consolidate their debts into simple repayments.

Normally, theres something known as a CVA (Company Voluntary Agreement), which is agreed amongst all the creditors (people the club are in debt with), for repayments.

More often than not this results in deals such as "a penny to the pound", so for every £1 that is owed to a creditor, you pay them 1p.

You need to have a better grasp on your finances. Lower your wage, sell players etc.

I just thought you may go there with just a negative balance, which obviously is not the case

I just thought you may go there with just a negative balance, which obviously is not the case

A lot of clubs can operate on a negative balance providing they don't reach a level of unsustainable debt (Pompey for example).

It's when a club stops paying it's tax bill that it should become worried. Good examples are Portsmouth, Southend, Cardiff, Accrington Stanley and Chester.

All the clubs have/had unpaid tax bills. Pompey have gone into administration, whereas Southend & Cardiff have been given a set amount of days to pay of their tax bill or face closure.

Accrington paid off their tax bill at the last minute I believe, whereas Chester were put out of business.

But as said, it's possible for a club to operate on a negative balance providing its sustainable. This means in practice that although their expenditure exceeds their income, providing they're able to pay wages, bills and tax etc then it shouldn't be that much of an issue.