Financial balance

I played this game for 5 editions now and I've never focused on finances. Never cared for them. But now I said why not? And I actually find it difficult, because I am in December (managing FC Porto - who is not really poor) and I am on -10M. This without offering huge salaries (sure, I spent the whole transfer budget made available - but once the board offers those money, it means I can spend them because the club is not in a dangerous financial state; if they would be, they wouldn't give a transfer budget).

And at the end of each month I find myself with 5-10 million on minus. If this will continue at the end of the season I will be on -50M.

On long-term, how do you solve this problem?

You try to get rid of players asking for huge salaries and bring in youth players and so on? Or is it also another way?

(sure, I spent the whole transfer budget made available - but once the board offers those money, it means I can spend them because the club is not in a dangerous financial state; if they would be, they wouldn't give a transfer budget).

That isn't true. The board are perfectly happy to offer you large transfer funds and wage budgets that if you spend all of it will bankrupt you.

it's just the reality of modern football. you'll get sponsorship money, prize many..it will even out eventually

Yeah, what luka_ said. It should balance out if you're winning competitions etc.

Also, you can get rid of your higher earning players and bring in good youngsters on the cheap if you plan for the future.

Remeber, just because your board gives you a big transfer/wage budget - it doesn't mean you have to spend it.

It really depends which nation and league you are playing in. Over-reaching through big transfers and pushing your wage budget can be disastrous at the lower league levels as there usually isn't the TV or prize money to compensate. Plus, player transfer values too small to be able to cash-in to cover losses. If you miss out on promotion, you could be in big trouble. With bigger teams and leagues, there seems to be more of a safety cushion. Fair enough, as this is usually how it is in real life as well.

That isn't true. The board are perfectly happy to offer you large transfer funds and wage budgets that if you spend all of it will bankrupt you.

This is not entirely true. Look at AC Milan. Lately they have been in a not-so-fantastic financial status. Therefore the club invested only in cheap or free players. It is also logical, because you can't put the club in jeopardy only because of the transfer budget. The board in real life makes lots of calculations and in the end offers only what they think it is suitable and will not put the club through tough times. The transfer budget is offered because it CAN be spent and it is offered because the board wants the club to improve (buying new players, renewing contracts and so on). It is not offered only as a statistic. If the board "put" those money into your pockets, it means you CAN use them without having financial issues on short- or long-term.

This is how I see the problem.

There are some brilliant new details added to the finances screen in FM12. As a non-league club I'm really having to pay attention to monthly payments for loyalty bonuses, scouting trips, academy costs and such like (and staff wages which was in last year). Now I can see more clearly WHY I lose so much money every month! Of course, the board allowed me to run up these expenses, so as long as I stay within their wages budget the losses aren't really my problem.

This is not entirely true. Look at AC Milan. Lately they have been in a not-so-fantastic financial status. Therefore the club invested only in cheap or free players. It is also logical, because you can't put the club in jeopardy only because of the transfer budget. The board in real life makes lots of calculations and in the end offers only what they think it is suitable and will not put the club through tough times. The transfer budget is offered because it CAN be spent and it is offered because the board wants the club to improve (buying new players, renewing contracts and so on). It is not offered only as a statistic. If the board "put" those money into your pockets, it means you CAN use them without having financial issues on short- or long-term.

This is how I see the problem.

it is not quite true. for example take man utd. they lose about 10-12mil each month. they have balance of 120mil, and the board will give you around 50mil transfer budget. so if you spend zero, at the end of the season you'll be around 0 or slightly in red. if you spend 50mil,you will be around 50mil in red. which is a lot.even with prize money and sponsors,you'll be able to have around 60mil in balance. and if you miss out on CL spot you'll just go bankrupt.

My point is that you should calculate what and how to spend because the board does not.

This is not entirely true. Look at AC Milan. Lately they have been in a not-so-fantastic financial status. Therefore the club invested only in cheap or free players. It is also logical, because you can't put the club in jeopardy only because of the transfer budget. The board in real life makes lots of calculations and in the end offers only what they think it is suitable and will not put the club through tough times. The transfer budget is offered because it CAN be spent and it is offered because the board wants the club to improve (buying new players, renewing contracts and so on). It is not offered only as a statistic. If the board "put" those money into your pockets, it means you CAN use them without having financial issues on short- or long-term.

Yes that is how it works in real life. In FM the board isn't that great at managing the budget. Some clubs will give you budgets that if you use all the transfer and wage budget you will go bankrupt.