Restructuring the debt

Never had this before. Could someone explain what exactly happened and why the initial loan and debt have gone?

£44mil in the red and a bank loan of £322mil (£1.91mil a month until 2031)

One of my players went to the chairman to get get reassurances that I won't have to sell players to pay off the debt. A day later a message came up stating the AC Milan board restructure the debt.

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never seen that before..

how did you get that much in debt tho?

Well, it was actually my friend who has requested I post this.

He took over when there was a financial problem there but still made 40 million in profit from transfers. Largely down to the sale of Pato. Therefore, there must have been a serious financial issue before he was hired.

This is a bit confusing. The listing of a company voluntary arrangement on your team's finances page, coupled with the balance of 0, suggest your team basically went bankrupt & worked out a deal with creditors. However, this should have had more serious consequences for you - I understand that the football authorities in Italy generally relegate teams that become insolvent to the extent that you clearly did.

Edit: for 'you' read 'your friend'. Posts came while I was writing

PS I think this is worth highlighting as a potential bug. Does your friend have a way to get a savegame from around this time to SI?

I think what should have happened in this circumstance is the whole of the debt + existing loan(s) being refinanced into a larger longer-term loan, rather than a CVA which has basically eliminated the vast majority chunk of the debt without any footballing consequences.

Also, the turnover/expenditure/profit doesn't look to add up properly for this season on the screenshot.

PS I think this is worth highlighting as a potential bug. Does your friend have a way to get a savegame from around this time to SI?

I think what should have happened in this circumstance is the whole of the debt + existing loan(s) being refinanced into a larger longer-term loan, rather than a CVA which has basically eliminated the vast majority chunk of the debt without any footballing consequences.

Also, the turnover/expenditure/profit doesn't look to add up properly for this season on the screenshot.

That's fine, but we'll wait until SI call on this one.

I initially thought it was a bug myself to be honest.

I think it would at least be worth mentioning in the bugs forum to see what they have to say about it.

£68 million has just been pumped into the club too.

£68 million has just been pumped into the club too.

Who by and why? Additional chairman investment? This sounds increasingly weird.

By the chairman. Who, remains, to be Silvio Bersculoni.

Sounds like he's done a Ken Bates @ Leeds. However, the club should have seen footballing consequences as a result (administration or relegation) and I would call this a very likely bug.

My club atletico M had a debt of 180M , the chairman loaned cash or something ,in the first year i could use 30M of the 50M we had , dunno why he took 200m , i hate useing alot of Cash to buy big players, i rather raise them and win big titels... but the club is gona be taken over soon by a businnisman, i saved the note lol...

I have seen a large amount of debt go away, after they claimed the economy was stabelized and better, so the debt was paid. Maybe something similar.

Ask him to get screenshots of Income and Expenditure, because in July and August 2013, the club went from a healthy balance to -£40m and then down to around -£60m. Since the TV Money and Sponsorship comes in then, i can only assume he bought a player or players that cost quite a lot.

Ask him to get screenshots of Income and Expenditure, because in July and August 2013, the club went from a healthy balance to -£40m and then down to around -£60m. Since the TV Money and Sponsorship comes in then, i can only assume he bought a player or players that cost quite a lot.

Sure thing.

As soon as I get home and he comes on messenger. I'll get them for you.

As far as I understand it, a CVA is basically your last chance to resolve your problems before you go bankrupt and your assets get stripped. It is effectively your "final warning" as you will not get any more loans.

As far as I understand it, a CVA is basically your last chance to resolve your problems before you go bankrupt and your assets get stripped. It is effectively your "final warning" as you will not get any more loans.

From wikipedia (not always the best source I know):

"A company voluntary arrangement can only be implemented by an insolvency practitioner who will draft Proposal for the creditors."

This suggests the club should be in administration for a CVA to occur.

Ive posted a couple of threads on the subject of administration and the verdict from people who posted on there was it needs to be improved massively, at the min the game just doesn't really know what it doing, it does not have much financial sense. Hopefully it will be improved in the future.

I kind of wish they would let us manage the books.

From wikipedia (not always the best source I know):

"A company voluntary arrangement can only be implemented by an insolvency practitioner who will draft Proposal for the creditors."

This suggests the club should be in administration for a CVA to occur.

i have had this 5 times.