transfer budget and balance

I would like to ask something because it confuses me from time to time!

I manage Hull and i see in my finances team the following:

transfer budget: 208M euros

Balance: 155M euros

How is that possible?

I always thought that the transfer budget is a portion of the total balance you have. Anyone sure about this?

sometimes the board will let you spend more than you have because they expect you to bring money in by doing well in Europe or even to qualify for Europe.

The balance is how much the club has in it's bank account.

The transfer budget is how much they will allow you to spend on new players. Unlike the balance it is not money as such, it is just a figure that you can spend. It does not mean you can definitely afford to but it is how much you are allowed to spend.

Obviously you can have an overdraft as well in your bank account.

If you spend all your budget in this case, ignoring any other income and expenditure, your will have an overdraft of €53m.

So you don't think the mess caused at many clubs in the real world is not due to them spending beyond their means?

Clubs like Portsmouth took out loans to pay for players.

agreed but i expected the game to show us a total amount of money we can spend without any hidden funds that we may or may not have

agreed but i expected the game to show us a total amount of money we can spend without any hidden funds that we may or may not have

Forget about any imaginary overdrafts that you cant see. The game does show you what you can spend. Your transfer budget. If you dont want to use it all because it will put you in debt then don't. Its as simple as that.

lol no it is not simple! as said before the transfer budget is not what i can spend. i cannot consider mine something that will put me in debt later! the game here is a little off

lol no it is not simple! as said before the transfer budget is not what i can spend. i cannot consider mine something that will put me in debt later! the game here is a little off

Yes the transfer budget IS what you can spend. That is why it is your transfer budget.

If you look at your budget and balance and realise that if you spend your budget it will put you into debt then dont spend it. If you know you will definately be able to pay the money back because of prize money and so on at the end of the season then there is no problem.

There are a lot of clubs that spend more than they have in the hope that a better team will mean highler league position, better in europe and so on. If they achieve this they will have enough money to cover that which they have overspent. If you feel you can achieve this then it doesnt matter but if you dont perform you'll end up like Portsmouth and Liverpool

lol no it is not simple! as said before the transfer budget is not what i can spend. i cannot consider mine something that will put me in debt later! the game here is a little off

The board are basically saying to you, that is how much they are letting you spend so therefore they think (it might not be true though) that spending that amount should not put the club in debt.

You need to base it on more than those two figures. Are you currently making a profit/loss per month? Is your chairman a sugar daddy? Do you have loans?

You then have to use your own judgement. Don't spend unless it is necessary.

@Vangelis21:

Apparently you don't understand the meaning of the word "budget."

A budget is a plan for future expenditures. A balance is a snap-shot of present available money.

If you tried to spend your entire current budget for transfers right away, one of two things would happen: you would be stopped somewhere along in the process and told to delay the transfers yet to be completed until money was available, or the chairman would pump money into the club to allow completion of the transfers.

It is possible that the board expects that added moneys will be available to you over the course of the season. There are a lot of reasons this might be true, including TV rights moneys and a sugar daddy chairman.

If you are worried about the potential financial effect of utilizing the full available transfer budget, see if you can figure out what the board is relying on to pump up future money in the bank.

If the board is offering you a budget which may put the club in debt, then they probably have a plan for bringing it back into the black. The balance is the board's problem, so just spend as much of your budget as you want to.