Club finances

[fivetwelvepony]

My club went out and spent $260 million on a new stadium, and now my transfer budget *far* exceeds the club's overall balance. By an order of magnitude. ($318 million transfer budget, $38 million overall balance) What happens if I actually spend my transfer budget? Will I bankrupt the club and get sacked?

[FrazT]

The transfer budget is the amount that the board will allow you to spend, so staying within that figure should not lead to your sacking.  The board decides on how and where money is spent, so they must be comfortable with the overall finances.  A final point is that you don't HAVE to spend a transfer budget and will get some credit for not spending it all unless there is a playing need.

[fivetwelvepony]

Saving my transfer budget is how it got to $300m in the first place! But even spending only 20% of the budget would put the club into the red.

I've read elsewhere that you shouldn't always do all the things your board allows. Like when hiring coaches, you need to keep an eye on the club's financial balance.