Finances - Non football costs

I am having a problem with my finances. The cost of Non football costs - (Amount of non football wages paid out by the club) has rocketed from £21m last season to £22m this season (and i am only in January) even though i am playing in all the same competitions and have the same board etc (nothing has changed!).

Tax is going to increase 5 fold and Other expenditure 3 fold by the end of the season.

Does anyone know what these wages can be and the tax and other expenses?

Probable things that it could be:

Scouting expenses

Hotels/travel for away games (especially europe)

Other staff (admin, IT, TV, etc)

Policing for games

Medical bills

Can someone explain Tax?

Is there a way to save on taxes?

Can someone explain Tax?

Is there a way to save on taxes?

Question One - Courtesy of Wikipedia

To tax (from the Latin taxo; "I estimate") is to impose a financial charge or other levy upon a taxpayer (an individual or legal entity) by a state or the functional equivalent of a state such that failure to pay is punishable by law.

Taxes are also imposed by many subnational entities. Taxes consist of direct tax or indirect tax, and may be paid in money or as its labour equivalent (often but not always unpaid labour). A tax may be defined as a "pecuniary burden laid upon individuals or property owners to support the government […] a payment exacted by legislative authority."[1] A tax "is not a voluntary payment or donation, but an enforced contribution, exacted pursuant to legislative authority" and is "any contribution imposed by government […] whether under the name of toll, tribute, tallage, gabel, impost, duty, custom, excise, subsidy, aid, supply, or other name."[1]

The legal definition and the economic definition of taxes differ in that economists do not consider many transfers to governments to be taxes. For example, some transfers to the public sector are comparable to prices. Examples include tuition at public universities and fees for utilities provided by local governments. Governments also obtain resources by creating money (e.g., printing bills and minting coins), through voluntary gifts (e.g., contributions to public universities and museums),by imposing penalties (e.g., traffic fines), by borrowing, and by confiscating wealth. From the view of economists, a tax is a non-penal, yet compulsory transfer of resources from the private to the public sector levied on a basis of predetermined criteria and without reference to specific benefit received.

In modern taxation systems, taxes are levied in money, but in-kind and corvée taxation are characteristic of traditional or pre-capitalist states and their functional equivalents. The method of taxation and the government expenditure of taxes raised is often highly debated in politics and economics. Tax collection is performed by a government agency such as Canada Revenue Agency, the Internal Revenue Service (IRS) in the United States, or Her Majesty's Revenue and Customs (HMRC) in the UK. When taxes are not fully paid, civil penalties (such as fines or forfeiture) or criminal penalties (such as incarceration)[2] may be imposed on the non-paying entity or individual.

Question Two

No

Hoped this helped.

Still playing fm 2010 and im with luton in 2038 and im paying out £48m a season on non football costs.

This is a bit of a 'grey area' in the game.

I don't think there is much a manager can do to influence the costs in these areas as I would imagine in real life this would be done by the board.

Yeah also still playing FM10 - the only thing i can guess that is causing it is scouting expenses. Must stop all scouting and see if it improves

Accountants, lawyers, admin staff, probably some nice 'consultancy fees' for your directors - the bigger the club gets the more you'll have to pay out.

Can someone explain Tax?

Is there a way to save on taxes?

Ha ha ha ha ha!!!! Nice of the director of Portsmouth to drop by, eh?

this has been a problem for the last few games. I'm pretty sure that its the game's way of balancing the financial system of the player so he doesn't get too much income.

i don't really know if that makes any sense because even with huge clubs like barca/real/man utd and the likes, the non footballing costs keep soaring and they reach ridiculous amounts that i doubt real clubs pay them.

This is probably the most annoying thing about FM - very little control over finances. If you want to reduce your expenditure then all you can do is either sell players or offer them lower contracts (which will be rejected by everyone apart from your reserves who are running out of their current contracts). Alternatively, if you are playing in low leagues then you might be able to get a parent team, but the income from such a partnership will be tiny.

To those who want to say 'but it's more realistic this way' - keep your pants on. First of all, this is a coputer game, so talking about 'realism' is laughable to say the least. Apart from this, would it hurt to see where the money is going by having a more detailed 'Income' and 'Expenditure' section? Would it hurt to have more control over where / how the board is spending your hard earned cash?

Managers don't have much control over the club finances apart from what they spend on player/non-player wages. Everything else is controlled by the board or the chairman. And no, it is not "your hard earned cash", it is the club's

Non-footballing costs is a grey area for sure and most users tend to think that FM pays out way too much in this area. However in real life, most clubs especially on the higher levels actually spend even more on non-footballing wages etc. than we currently model in the game. This is not something we just base on a "gut feeling" or some ballpark figures quoted in the media, but rather actual financial reports and data from the clubs. On the top levels, clubs usually have a huge number of staff working on non-footballing areas (such as HR, marketing etc.) not to mention the staff that are not individually included as non-players in the game itself, who are involved in smaller but still crucial footballing roles (trainers, youth coaches for pre-newgen age youths etc.) at the club.

Nice reply, and I do think it is great that non footballing costs are higher if it depicts real life.

Is there anything we can do to lower this? For instance does scouting cost extra? (apart from the wages), does playing more friendlies cost extra? (again not taking fees and revenues into consideration)

Managers don't have much control over the club finances apart from what they spend on player/non-player wages.

Just like real manager probably don't have too much to say about upgrading training facilities or building a new stadium, yet it's still possible in the game.

I understand that the game has to model 'non-footballing' cost and I understand this should be mostly out of the managers control, but my problem has always been that every year these costs go up and up, but the money for winning competitions stays stable. It gets to a point where you make a club more successful, but end up with less money. The same seems to happen with competition bonuses. After playing 10 seasons in fm2010 even a low bonus was more money than winning the trophy as it had gone up and up each year.

Just like real manager probably don't have too much to say about upgrading training facilities or building a new stadium, yet it's still possible in the game.

Yes, but all you can do in the game is ask for an upgrade or new stadium. The board will say yes, no, maybe, whatever....but all you do is ask. They take care of the rest, and you have no more say in the matter. The board also take things into their own hands. At Spurs, they decided to go ahead with stadium expansion even though i am not keen on the idea-afterall, it will eat into my transfer budget and a quarter of the stadium will be out of use for half the season-but it's thier call. I don't think it's out of this world unrealistic for a manager to ask for an upgrade to facilities. Infact quite the opposite.

To the OP. I used to fret about money in the game, but really, there is much you cannot control. Just keep under wage budget, don't spend more than you've got, be uccessful on the pitch(Europe/trophies) and you'll be fine.