Losing money

Hi i'm currently losing about £3m a month when i'm on my wage budget (£950k p/w) and sell out 52,000 tickets every home game, how can i stop losing so much money? surely in real life teams don't lose this much money, i thought they had fixed the financing issues?

Have you got any major outgoings? Paying for players each month? Club debts/loans being paid back? Upgrading facilities?

yeah i've noticed that on my league one game despite being high in the league so attendence is good, and being within budget and not paying any transfers installments i'm losing about 125k a month plus i'm on a couple of good cup runs which means it would be worse, that did'nt happen in fm 2008 to me does anyone know if it is a delibarate thing to echo real life or what?

Seems i'm paying out £1.2m on loan repayments and interest each month, but theres nothing i can do about that right? Apart from that nothing is too high, ground maintenance is £600k but there is no upgrades happening at the moment. Nothing else is high at all, except wages of course, but what I dont get is if we are spending too much on wages, why gives us a high budget in the first place. Also i'm not currently paying monthly for any players, no.

I think its perhaps a better reflection of real life than previous games (I believe its the case that a lot, if not most teams burn through money).

Remember you get money at the start/end of a season so thats the point to reflect upon your finances. Have a look at it then and you can work out whether you need to lower your actual use of the wage budget on offer to keep yourself in the black during the season. Else anything you profit from at the end of the season will go into clawing back out of the red.

No, you cannot do anything about the loans your club is paying back. I've heard in the past that clubs sometimes opt to pay them off early if you've loads of spare cash but I've not seen it myself. I'm too busy spending it

Seems i'm paying out £1.2m on loan repayments and interest each month, but theres nothing i can do about that right?

The only thing you can do if it bothers you that much is get the editor in use

Ashley, according to himself, has payed off our debts, yet the game says he has a £110m debt (loan). By the end of the season we will be about £20m in the red so i guess we will be about level for next year but if this is reality then why do clubs stil spend money in the summer? For example, Newcastle spent about £20m this summer, despite reported debt, so surely the game is too biased towards expenditure. And it seems my only income is tickets and match day revenue, and while i know this is the main source of income for clubs, the game doesn't seem to give income in any other areas, not during the season anyway.

I'm not sure of the ins and outs of Ashleys purchase of NUnited, but I think he is owed a lot of money (hence he's asking for a massive sum from anyone who purchases the club). He paid off most of the debts, but he wants his money back. Perhaps the game is reflecting his investment?

So the club is paying him back from his own loan??? It says it is a club chairman loan that owes £110m, so that would be a loan he has taken out himself, but if thats the case then there was no point in him paying off the clubs debt if he used a loan to do so!! if that makes sense.

Owen is off in the summer so thats £125k p/w off the wage bill (wouldn't sign a new contract), any other ideas how I can stop losing so much money???

Ah, that'll be it then (Chairman loan).

You wouldnt be paying it back (I don think) if he wasnt trying to get out of there.

I would dump Owen just because he's a money hoover, so it'll work out well with him leaving. Dump the other excessively paid players, replace some of them with younger stars. I'd imagine you'd be able to slash 1/3rd of your wage bill if people bought the infrequently played squad members. Plus you'd profit from their sales.

Club might be taken over (if it hasnt yet) and the debt could be paid off. Never ending circle

lol the club has only just got taken over (its February) but bloody derek llambias brought it..... surely unrealistic as he is part of the ashley regime, and he has just told me there are no plans for any investment (great). Next highest earner is Duff (65k) and Coloccini (60k). Im not selling coloccini thats final, might TRY and sell duff, but its still extremely hard to sell players, as i have n'zogbia, owen was literally taking up 1/8th of the whole wage bill plus chelsea are giving me £1.6m when they could have talked to him and got him free anyway....

btw there is still a club chairman loan despite the takeover and fact he has left

He's probably in on it with Ashley

Get rid of Duff - he's a mini-money-hoover.

sounds about right for newcastle...

might be a loan you are having to pay.. or maybe it is outstanding deals for transfers already made before you joined.

I have the same problem in the Major League Soccer with Los Angeles Galaxy (haven't yet tried the other MLS teams). I start with a balance at approximately +2.500.000 dollars (as Los Angeles Galaxy) and then I bleed money the whole season, when I get sponsor and tv money at the end of the season my balance is at approximately -500.000 dollars. I haven't spend more than 40.000 dollars on players and I'm under my wage budget and there is no expansion going on. what can I do?

It makes no difference how much you lose each month. Most football clubs do lose money each month, this is then ofset by league winnings (yes even 20th place gets league winnings) at the end of the season and TV rights at the start.

It only needs to balance on a yearly basis.

Hobgob.

Thats fair enough but if it balances out yearly then on the manager overview screen where it says profit/loss below your balance, this should end the season on roughly £0, i.e the clubs finances has balanced when you included season tickets prize money ect. Well then mine is currently on about £2m profit and its February, so by the end of the season I will have lost money over the season which includes those cash injections during close season.... Plus I was hoping to be taking over by a rich company not derek llambias!!

Just think though, simply knocking Owen (600k/mo) and Duff (300k/mo) off your wages would practically save you £10m/yr.

stephen_nufc - what are you making each home game? What is your monthly wage bill? What are you having to pay back in terms of the chairman loan? (1.2m I believe) and what is the ground costs? Surely not 600k per month? That's a year right?

Like has been said already in this thread, most clubs lose a lot of money each season and have to rely on investments from the owners to keep the club running. So it is not that uncommon for even the big teams to lose money. I wasn't saying the finances balance out yearly all the time so that clubs don't lose money, I was rather just trying to describe the way the cash balance and the monthly profits/losses change over the course of the season.

I think the problem is more the wage budgets Riz.

If you are within the budget set then the club should not be losing a significant amount of money on an annual basis.

Whilst I can set myself affordable limits I'm sure there are users out there that struggle to understand the financial side and rely on the budget given to them.

I haven't played 09 too much but from 08 as an example.

Playing in Northern Ireland my current team has had a monthly wage bill of between 6k & 8k a month. Over the last 5 seasons this has led to the club approx breaking even each season (No transfers). Yet over that period the club has given me a wage budget that has varied between 13k & 25k a month. Had I used anywhere near the available budget the club would have made significant losses each season and would now have a large debt.

stephen_nufc - what are you making each home game? What is your monthly wage bill? What are you having to pay back in terms of the chairman loan? (1.2m I believe) and what is the ground costs? Surely not 600k per month? That's a year right?

Making about £500k each home game, the monthly wage bill is £856k, Chairman loan is £1.2m a month until 2020, and the ground maintenance is about £600k a month yes.... so far over £4m this season.

There is an option now to relay the pitch not sure what affect that has though?

Can you screencap your financial area?

600k/mo for ground maintenance seems high.

856k/mo wages for a Prem club is quite low.

what I dont get is if we are spending too much on wages, why gives us a high budget in the first place.

Some clubs like to gamble on being successful. Ask a Leeds fan.

I played a half season and was doing quite well a few games in - two wins and two draws and then was suddenly hit with 9 point penalty and a transfer embargo ala Leeds. I think I would have finished top half still but those 9 points would have meant me finishing 4th/5th which would have been a great result for the Toon. I quit the game when it was obvious that the debts would still keep mounting despite new investment. Think I had loan repayments of 1.3 million a month. Basically I was screwed.

anyone know if i'm losing too much in some areas. screen shot above

anyone?.....

I do not think its crippling (from looking at your screenie). Therefore I'd suggest playing out the season and seeing what kind of income you receive at the end. I think it might be okay.

I have played over a year (Los Angeles Galaxy) and the balance is going down and the tv/league money is not in balance with the overall loss and even with a player sale of 2.700.000 dollars, the balance is still dropping.

Does anyone know the breakdown of prize money for the prem. How much does each place get?

Its simple finance.

You only have so much money, and you have so many bills.

If your losing alot of money, as has previously been said by people, offload people who cost alot of wages, or there spare "squad players", to lower the wage bill and bring in money .

1st thing i did as Chelsea was to sell the squad players i didnt need, and replace them with younger players, or just players that were as good but without as much cost or wage needs.

I sold Lampard to Real Madrid for 30 million, now thats a nice sale, but even better is losing his 6-7 million wage. Didnt renew Ballacks contract, another 6-7 million.

Now dont get me wrong, lampard and ballack are good, but offload them and save yourself 14 million a year, allows you to bring in 2 replacements and pay them 2-3 million a year each, saving between 8-6 million off just 2 players, both of which were getting old.

I know as football manager its nice to buy tons of expensive players, splashing tons of cash on high wages to make sure they come to newcastle, but if there were no reprecussions it would be no where near realistic, and to tell you the truth, doing that is what got newcastle in the problem to start with.

If you dont want financial drama, restart as man city or real madrid, if you want newcastle, chop the hell out of your squad, removing anyone on an inflated wage and sell them for as high as possible, search for some players as good or close to it for 1/3 there wage.

That will drasticaly lower the bill.

Then loan out as many of your reserves as possible, so that other clubs are paying there wage bill.

Check your staff and get rid of anyone who earns a fortune, and replace them with brazilians or others with just as good training stats, but willing to do it for 20,000 a year not 250,000.

Soon you will be making money, not losing it, then you can start to upgrade the newcastle squad with a proper team and wage structure, not buying random crap failed superstars for small fortunes.

Look at Arsenal, they had to do it.

I've trimmed the wage bill by £100k p/w already, in the summer when owen goes to chelsea as he wouldn't sign a new contract, still managed to get a bit of money for him too, thats another £125k p/w, trying to sell Duff and Viduka, which would be another £125k p/w combined so hopefully by the summer before i buy anyone (i pray that they actually give me some funds) my wage bill will have gone down from £950k to about £600k a week, and hopefully i can get replacements in for much less wages.

I'm losing money each month and by January I have no money for transfers. However when July rolls around, I tend to have enough to get one or two decent players before any transfers out. I think it's accurate, and you have to plan ahead. You'd kick yourself if you missed a bargain in January when you wasted £15m on a bench warmer.

I'm losing money each month and by January I have no money for transfers. However when July rolls around, I tend to have enough to get one or two decent players before any transfers out. I think it's accurate, and you have to plan ahead. You'd kick yourself if you missed a bargain in January when you wasted £15m on a bench warmer.

Well you will be sacked and Harry Redknapp will be appointed!

I'm way under budget with Los Angeles Galaxy, I have even managed to make Landon Donovan go from 900.000 dollars a year to 375.000 dollars a year and still losing money.