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Wage budget VS Transfer budget


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I have to ask, why do you choose to have the wage in "per annum" does this mean when negotiating a contract its per week still or not?

I feel knowing how much its going to total at the end of the year is a great way to think about it, but if it showed contracts this way it would only confuse me.

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Its pretty realistic and pretty sensible.

The transfer and wage budgets shouldnt be 100% exchangable, especially if you have been moving the slider towards the wage budget for a long period of time as I normally do.

If you have 2 million in the transfer budget, and you spent it on a player, then that costs the club 2 million pounds.

If you move it over to the wage budget, and spend it on players on super long contracts, with bonuses and loyalty fees, then this exposes the club to financial liability far greater than 2 million pounds, so your board will be trying to prevent that.

A good example IRL is that of Gretna. Their financial backer Mileson (AS I UNDERSTAND IT) didnt spend his money on big transfer fees, that were one off payments, instead he funded the paying of a lot of wages, both of contracted players and players on loan. When he withdrew his financial backing, the club still contractually had to pay all the wages.

If he had spent the money on transfer fees for players whose wages the club could actually afford, then although it might have restricted the number of players that could be signed in the short term it would probably have prevented the club from going bust.

In FM i dont go top sides so I barely ever sign anyone for money, instead come July 1st I sign loads of good players on frees, then in December sell on the ones who didnt work out for profit, then move this profit to over to the wage budget, to sign more free players to sell. It is inevitable that in time there should be a limit on this, as Im now crippling the club with my wage budget, only staying in the black by selling players (which I am managing nicely)

Sorry if this isnt clear

Edit - just realised nottingham forest said the same as me in 2 lines

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Think of it in real terms- wages are something a club's stuck with regardless of performance, and there have been plenty of examples lately of clubs being stuck with high-earning players after getting relegated/not making Europe etc. Look at the troubles Portsmouth had, with the likes of John Utaka stuck on £80k/wk when they went down.

It's not entirely surprising the board (especially as Preston) would be wary of you committing them to a financial structure they don't think is within their means, regardless of whether you have the funds available right now as a transfer budget.

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Works as designed as far as I'm concerned.

Transfer budget is mostly "one-off" in nature, Wage budget is structural in nature. High wages will have a significant impact on your spending in the coming years, while a high transfer fee will only impact you in the year the transfer fee is being spent.

Think of it this way: if your boss gave you a 120 euro one-time bonus on top of your wages for good work and you request it to be put into a structural increase of 10 euro of your monthly wages, he'd refuse that on a similar basis as well.

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