View Full Version : Does the board take future finances into consideration when making a decision?

10-12-2011, 02:29
Ok, so:

My board has 1.1 million in the bank at the moment and theyre willing to upgrade my training facilities which will cost 950k therefore the balance would be 150k left in the bank right? So my wage budget is 48k per month, therefore if i go through with this will it put me in financial trouble or do they find the money from another source? Because if they only had 150k in the bank i would be in the red in around four months and in big trouble by the end of the season.

In real life the board surely wouldnt sanction it if it was going to put them in financial danger, unless theyre wreckless, therefore im slightly confused.

If anyone could shed any light on this before i proceed it would be very helpful, thanks.

10-12-2011, 02:31
Short answer NO

Long Answer - Unfortunately not

Don't forget gate receipts from Home games and potential transfers when selling a player. If the club goes intot he Red, at some point the chairman may decide to put some money into the club balance

10-12-2011, 02:40
Right, thats a bit of a floor, so its not worth doing then until im loaded? And we cant rely on the chance of cash injections as they may not happen right?

10-12-2011, 12:26
They are not necessarily going to cancel the upgrade just because you are in the red at he end of the season. Most clubs are in the red at the end of a season, so that's actually very normal. You won't be in a debt cricis unless you are losing money from one season to the next over time - a clue is that you are still in debt after having sold all the season tickets for the season... then you are in trouble.

So try to upgrade and see how it goes. It would surprise me if they cancelled the project because the bank balance is in the red towards the end of the season.

10-12-2011, 12:50
I would take the opportunity to upgrade, better training could improve your players, leading to better performances and higher gates. You may also be able to employ more/better staff.

As for the board's take on future finances, as they require the manager to commit to certain expectations for the season they should at least have a financial projection for the next year. (if that doesn't already happen?)
I think it should cover the next four years, to match the length of time that transfer payments can be spread over.

10-12-2011, 12:50
My point is thought if i do go through with it and end up in debt this cant be reversed, im not sure there is enough money in the football league to cover me.