Which is the consequence of having the balance slightly in red ?

Just to know if I will face major problems or not.

BTW the weird aspect is that my wage salary is 65k under the cap the board established.......

Nothing to worry about as long as it doesn't send you in to administration and not having a transfer budget worth much.

Never trust the board!! Remember Ridsdale at Leeds!!

Nothing to worry about as long as it doesn't send you in to administration and not having a transfer budget worth much.

Never trust the board!! Remember Ridsdale at Leeds!!

How much does it take to be send in to administration?

In my game I am struggling to stay out of the red.

Got a 5000 cap. stadium filled to the brim in most games. City council blocks any expansion/new stadium.

Im well below my wage cap (although I myself make an insane amount of money, which I suspect takes a huge toll on my finances), and manage to ship the odd player off to the transfer market now and then.

Each summer I manage to go out of the red, but this year just barely, and I suspect my finances will be bleeding come christmas.

What does it take to get in to administration?

What are the consequences of this?

Nothing to worry about as long as it doesn't send you in to administration and not having a transfer budget worth much.

Never trust the board!! Remember Ridsdale at Leeds!!

and at Cardiff (((( now Plymouth too

For going into administration you will be taken 10 points from your standings. I do not know how is it to be there and how much you have to be on minus to get into it, I never did it.

I suppose it depends what level you are managing at?

Smokey matter, it would be the case for SI to chime in and specify what is not written into manual nor FM knowledge manager.

if u go into administration you get deducted ten points in the league (as gourcuff20 said above) or the next season if at the end of season when u go into admin.

As well as this the Administrators can accept reason (in their opinion) bids for players and sell them without your consent to balance the books.

You also have a transfer embargo set on your club as well.

The amount for your club to go into administration varies on how well the club can balance their books.

i.e. Man U have loads of debts but because of their football rep they are expected to win good prize money each year from competitions and they get a high amount of money from sponsers.

The best bet is too try not to go into the red but easier said than done in some clubs.

The best bet is too try not to go into the red but easier said than done in some clubs.

I appreciate your answer anyway the final quote above is quite obvious and banal, above all considering that my wages are really a lot under the cap established by the board....

In few words, where do money are leaking ? Finance details IMO is too confusionary, not precise and not managable therefore pretty useless and inaccurate.

At the end of each month you get a report telling you what your income and expenditure is and it tells you the main area for each you could look here or you could check too see if your club have outstanding loans etc cause they could be running out shortly and aleviate your financial situation.

The only other thing i can think of is thinning out your staff or players to make money but that is too counterproductive imo.

I appreciate your answer anyway the final quote above is quite obvious and banal, above all considering that my wages are really a lot under the cap established by the board....

In few words, where do money are leaking ? Finance details IMO is too confusionary, not precise and not managable therefore pretty useless and inaccurate.

they break down your spending into the various areas, it couldnt really be much simpler

they break down your spending into the various areas, it couldnt really be much simpler

At least it should managable, this way you can just watch those numbers like the hands of a clock, you can't do nothing to change the course of the destiny and time......

At least it should managable, this way you can just watch those numbers like the hands of a clock, you can't do nothing to change the course of the destiny and time......

how much ability to managers have on those cost. most of them are things you have to pay. Personally i'd like to see a better financial model, but i dont know how easy that would be for SI to implement, besides its pretty easy to manage your finances anyway without extra tools

SI could indeed make a team's financial picture a little clearer but there's certainly enough information available to understand your club's basic position and conduct operations.

To address the original post: having a slight negative balance is, in and of itself, of little importance. Profit/loss (P/L) is vastly more important. To paraphrase Ben Franklin or Samuel Johnson or one of them philosopher dudes: balance -50K, annual P/L +50K = bliss; balance +50K, annual P/L -50K = unemployment. As far as the wage budget is concerned, it's important for board relations but in regard to the team's financial position, not so much -- only to the extent that the actual expense throws you into the red. As for administration, the threshold varies from league to league in the real world and is probably adjusted on a club-by-club basis as well based on future prospects. Thus, if a club becomes "eligible" for administration but has great earnings power or ownership interest from a multi-billionaire sheik, the league may well leave it alone. How SI translates this into the game, I do not know.

IN FM2010 I played as Stafford in the Blue Square North/South and if they went $1million in the red before January I went into administration. Normally after they managed a loan or something. Sometimes even after Jan I got the points deducted if it was that much in the red. And I ran it a ton of times. It's always $1 million. Dunno if you go into admin for being lets say 500k in the red at the end of the season though.

IN FM2010 I played as Stafford in the Blue Square North/South and if they went $1million in the red before January I went into administration. Normally after they managed a loan or something. Sometimes even after Jan I got the points deducted if it was that much in the red. And I ran it a ton of times. It's always $1 million. Dunno if you go into admin for being lets say 500k in the red at the end of the season though.

Thanks for sharing. SI must now detail that for sure.

Hey SI could you please kindly say something of this matter ?

It will largely depend on factors like reputation and your income.

A bank balance that is negative suggests insolvency (i.e. the inability to pay debts as they fall due). It is not always a problem, although it usually suggests one. For example, if I have £20m in the bank and spend £40m on a player to take my bank balance to -£20m, but I am going to get £50m back tomorrow by selling two players, I will have a bank balance of -£20m by close of business today, but this is not much of an issue as long as I have no debts to pay today (because then I wouldn't be able to repay this debt), I will be £30m in credit.

So if, say, Manchester City's balance fell to -£0.01, they wouldn't be put into administration because the owners could easily inject more cash tomorrow. All debts are usually negotiable with grace periods, after all. On the other hand, if a Blue Square side dropped into -£1m in balance, there would be a serious issue and administration is almost certain, because there is no way the club can repay any debts in any reasonable amount of time.

In the first case, if you like, administration will result in less people being paid because of legal costs and administrator costs, so it makes sense simply to give Manchester City a grace period.

So there's no hard-and-fast rule. If you like, "small" negative balances in-game are OK as long as you can bring it back to a positive by the end of the season (ideally as soon as possible, of course). What is "small" is dependent on how much debt you are in and how much income you make - again very difficult to judge.