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Dividends and the financial system in general


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This keeps frustrating me. Mainly I have two major problems with it:

1. Playing as AFC Wimbledon and the dividends are still being paid out. This is a fan owned club and the whole point behind that is that the owners will not take money out of the club. Or have my fans suddenly become very greedy? IMO only certain clubs should pay dividends.

2. Paying out dividends even if I lost money that year. Not sure about UK rules, but I think that in Norway there you need to make a profit to pay out dividends?

Hopefully we will see a revamp of the financial system pretty soon. Its a VERY important part of world football and for many it would be interesting to get a better understanding of why certain costs are incurred in FM.

Any views on this?

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Good points. I agree with you, only certain clubs should pay dividents.. it's the same issue with German clubs. The financial system definetely needs an overhaul. I always feel frustrated when the clubs makes losses and I just can't figure out how to change that.

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Well a quick look at their website suggests the trust only owns 72% of the club with the other 28% owned by a plc.

There is no issue with a plc paying dividends even if they lost money in the UK but I don't know if this plc in RL have paid out dividends in the past. Also remember that any dividends would be based on the previous year results and not the current year.

I would agree the financial model could be improved within FM but for SI its a balancing act as many users want to play a manager game and not a money game.

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The other thing that people dont take into consideration is that 'profit' in terms of FM does not = proft in terms of a company.

For example - if you spent £50million on a new stadium in FM your profit would be decreased by £50 million.

However in real life, if the stadium was then worth £40 million after its construction, then your profit would only be hit by £10 million as the other £40 million are assests still owned by the company.

In the same way (this bit is assumption) buying players is NOT going to remove profit as their registration is still an asset to the company, so therefore you can 'lose' money in FM terms, but still make a profit in financial terms.

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Get your point regarding ownership of AFC and also dividends based on previous years results. This makes it even more unrealistic cause it seems like it is clearly linked to how much money I have at the end of the season.

Also a more correct definition of profits (depreciations etc) would be more like real life. My issue is just that there are no explanations regarding certain costs. Would be interesting to see a more "correct" financial system.

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