mustardpower Posted October 19, 2011 Share Posted October 19, 2011 This is something that has confused me and I don't know if I'm thinking about this wrongly but I havent seen anybody else mention this before. For example, if the club I manage takes a loan out of 50 million and payments are made over 25 years. Surely, after a year the club debt should then be 48 million rather than the original debt value that the club information screen would state. Am I wrong, as I find this misleading on how much debt some clubs have? Link to post Share on other sites More sharing options...
lhinchliffe Posted October 19, 2011 Share Posted October 19, 2011 No, debt involves the magic thing called interest does it not? So you may have paid £2 million - but not all of this would be off the debt, I would guess 2/5ths would be interest at least? Link to post Share on other sites More sharing options...
Ninian Park 1910 - 2009 Posted October 19, 2011 Share Posted October 19, 2011 well before i had a debt for £5m. after the sale of 4 players my balance was £26m, and i was making more than i was spending in total, i would like the option to use some of the excess £26m to pay off that debt straight away Link to post Share on other sites More sharing options...
DF#1 Posted October 19, 2011 Share Posted October 19, 2011 That's not really your call, though. You are only the manager at the end of the day. The decision to payback the loan lies with the chairman/chief exec. Link to post Share on other sites More sharing options...
EnriqueZove Posted October 19, 2011 Share Posted October 19, 2011 This is something that has confused me and I don't know if I'm thinking about this wrongly but I havent seen anybody else mention this before.For example, if the club I manage takes a loan out of 50 million and payments are made over 25 years. Surely, after a year the club debt should then be 48 million rather than the original debt value that the club information screen would state. Am I wrong, as I find this misleading on how much debt some clubs have? Money going off in interest. Moreover keep a check on your spending too. Link to post Share on other sites More sharing options...
stevvy Posted October 19, 2011 Share Posted October 19, 2011 Also if I'm right, there's a penalty for early repayment (not certain on that, but I'm sure people have said that before). Link to post Share on other sites More sharing options...
mustardpower Posted October 19, 2011 Author Share Posted October 19, 2011 Regarding Interest though, football manager seems to display the original debt until the very last payment, by which point surely the debt isnt the same as the initial debt. Using the same £50 million debt example, in the last year of payments it still displays £50 million despite only 2 million left to pay. Surely you wouldnt be paying £48 million of interest on this 2 million. I would of thought the debt should be the 2 million plus a years interest on 50 million at that point Link to post Share on other sites More sharing options...
noikeee Posted October 19, 2011 Share Posted October 19, 2011 That's not really your call, though. You are only the manager at the end of the day. The decision to payback the loan lies with the chairman/chief exec. Yep, but by the same line of thought as board requests for building stadiums, improving facilities, etc, we should be able to at least ask them to payback the loan, or part of the loan. A little unrealistic to be giving our input on this (not more than asking them to build a freaking stadium), but sometimes it's baffling to look at cash just sitting there, and they won't get rid of the damn loan crippling the club. Link to post Share on other sites More sharing options...
AndyPass Posted October 19, 2011 Share Posted October 19, 2011 I think it is reasonable in FM for the manager to 'suggest' to the Chairman that the clubs debt could be restructured or paid off if the club consistently turns a profit. It has irked me for years that my Forest sides regularly make a profit and rather than pay off the loan, the Chairman pays (himself) an annual dividend. Link to post Share on other sites More sharing options...
Rushers82 Posted October 20, 2011 Share Posted October 20, 2011 It also depends on how the debt and re-payment schedule is structured, i.e. you have borrowed £50m and have to pay it back in 25 years time, but your actual repayments may not start for another 10 years, in which case you would pay nothing for 10 years then yearly repayments of £3,333,333.33 + interest (£50m divided by the remaining 15 years of the loan term). This is of course a possible scenario in real life - I have no idea if this possibility is actually something that is programmed into the game. Link to post Share on other sites More sharing options...
mustardpower Posted October 20, 2011 Author Share Posted October 20, 2011 I just don't like how misleading it is a few years into the game when a club only has a small chunk of a debt to pay and on the information screen it will show they have a massive debt. Maybe the debt should be recalculated every year or something Link to post Share on other sites More sharing options...
Jimmy_Jambo Posted October 20, 2011 Share Posted October 20, 2011 This is similar to a morgage (effectly a loan) for 30 years. The first 15 years of the loan are for paying off the interest, meaning the amount borrowed hasnt changed. Untill after the 15 years, the payment on the morgage/loan is then being repaid, and should go down from that point onwards. Link to post Share on other sites More sharing options...
mustardpower Posted October 20, 2011 Author Share Posted October 20, 2011 I understand now but Im not too sure if it changes after 15 years or so but I only have that long games about 3 times a year. Im not really old enough to think about mortgages yet so I'll let myself off this time. Link to post Share on other sites More sharing options...
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