Jump to content

Financial model


Recommended Posts

I've said this before in other threads but never made a thread of its own. The way finances work is just a joke in a number of cases.

First off the 'Other' expenses category is extremely oppressive for some clubs, that one category usually makes up the sole reason my club losses money in a month. I usually need at least 2 home games for the gate income to match 'Other' each month.

Now when I expect to be making money based on many home games and high player sales I scratching my head why the club is still losing money. So I take a closer look at my finances and see Tax... Last season my team spent 1.3 million in taxes, in the current season my team is in late May (MLS, so early season) and the team has already spent 1.2 million on tax in so far, 250K in the last month alone. WTF is this, how is taxes expenses increasing what looks to be about 100% or more?!

Now before people have some wise idea that is taxes based on the big player sale I mentioned it can't be. I made the sale in the last season for 1.6M up front and 4.4M over the next 18 months, this was almost a year ago now that the sale was made. So it's not like I'm paying a 250K taxes on the income from the sale because that was long ago and I'm only making about 100K per month net off this deal as I'm also paying out some. But again, this was a year ago so if it was that income then it would have been equal last season as well.

For more general info so people don't blame me for just not managing money any good... I'm playing Colorado in the MLS, my current wage costs are 1.4 million/year -UNDER- my wage budget (budget=3,914,110/year Salaries=2,419,989/year). As I said I have a monthly profit or net player transfers and the club is not in debt at all, not a single loan.

So how is it that the team has profit of 16,000 so far on the season. Other has always been a domineering expense which never made sense, but when I saw the HUGE increase the club is paying for Tax I realize why the team is still losing money each month and it makes absolutely no sense what so ever for that number to change so drastically. It's bad enough that the team consistently bleeds out the 5 million they start with (both in FM10 and 11) in the first season and start the second season basically at 0. But even when I should be making money expenses change to not allow it, WTF SI?

Link to post
Share on other sites

Archived

This topic is now archived and is closed to further replies.

  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...