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Preventing transfer budget from doubling club balance?


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Anyone know how to prevent this from happening? Either by fixing it now or over time? I always run into this issue where my transfer budget never gets lowered when the balance does from things like new stadium, facilities upgrades etc. This creates a problem where the transfer budget and more specifically the wage budget is way bigger than my spend, which makes players unhappy as they want unsustainable contracts. 

Unless there's some transfer clause out there that gets placed exclusively in your balance and not added to your transfer budget I'm lost. There's no option to decrease budgets or % from sales this year, which I always used to deal with it in previous games. 

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I’m having the same problem with Dinamo Zagreb. Bank balance is just over £200 million, transfer budget is over £800 million. If I were to spend what the game says I can spend, the club would be bankrupt.

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For big clubs, overspending the transfer budget above the balance does not always spell doom for your club (although you might fail ffp) if your income is a lot and will cover your transfer budget. This is also true if you manage lower league clubs. Even if you have negative balance you will still have a transfer budget.

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Depends on the team. Maybe your transfer budget is higher than your current balance, but it's possible that, through other sources of income, you simply wouldn't be able to put the team in insecure finances just by spending the entire budget.

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13 hours ago, Renyy said:

Puts you at risk of being sacked. No winning here. 

as long you do not overspend the budget and spend the money on good value players you will be fine. also consider pulling the budget to the wage budget or scouting budget so that you dont overspend it. however just because they give you 600M doesnt mean that you need to spend all at one go.

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1 minute ago, zyfon5 said:

however just because they give you 600M doesnt mean that you need to spend all at one go.

this.... the answer to your issue is......   dont spend it. problem solved

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You're basically asking for a way to 'cheat' the game. You're clearly an extraordinarily rich club with a huge amount available to spend, so players now want more money. That's what happens in real life too and there rightly isn't a way to just 'hide' that money from them.

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Posted (edited)

The club gives me 540 million it does not have and have no means of generating, and you think of this as available funds that should dictate player demands. Regardless, it's not relevant to the thread. 

Edited by Renyy
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7 hours ago, Spurs08 said:

You're basically asking for a way to 'cheat' the game. You're clearly an extraordinarily rich club with a huge amount available to spend, so players now want more money. That's what happens in real life too and there rightly isn't a way to just 'hide' that money from them.

Players are entitled to a portion of the value they bring to the club, minus all the supporting costs that go into it, and some extra that goes into expanding and modernizing the club for the future. They aren't entitled to funds the club has to borrow because the club trusts the head coach to make good transfer decisions. Yes, in the real world some high end clubs do go into massive debt to buy and retain the services of world class players. However, their boards also have the ability to set their transfer and payroll budgets to sane levels so they don't go bankrupt, which is a more common scenario. They also tell the less skilled players to **** off when they come up with outrageous salary demands, and get more skilled talent from other clubs for the same price.

And, yes, the system is a bit screwed in this regard. As an experiment, I gave a super low division team a front end sugar daddy through the editor. Had no real idea what it would do at that level. As soon as the bank balance dipped below 0, this semi-pro team with 60k payroll budget (per year) received about 6 million. They set the transfer budget to 3 million, and all of a sudden the players which would ordinarily be earning somewhere between 2k-5k per year everywhere else on the planet were demanding 50k-100k per year. This, despite what you might think, is unrealistic. The club would just say "Enjoy your career in the reserves for the next two years, we'll just find an actual decent player to replace you, of which there are thousands. Have a good day." Players need to be more realistic about their own position in the scheme of things, and you need to be able to give them that reality check.

You also should have the ability to give the board a reality check and actually negotiate what the transfer, payroll, and scouting budgets should be. If you've spent decades building a few hundred million for the club, you should have the ability to say "NO. We aren't going to throw that all out the window now, thanks".

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Posted (edited)

https://www.theguardian.com/football/2019/may/22/premier-league-finances-club-guide-2017-18-accounts-manchester-united-city

Not a single club is operating with a higher wage bill than turnover. Most around 60%, some better some worse. By throwing £3 million at the lowest end of my weekly wage (up to 4m if I adjust the budgets) and the player demands increasing as a result, the game is pushing me to operate at 200% my turnover. I would have to win Champions League and sell players for around 50m every season to sustain such a wage budget. While that is possible in FM, I don't think a highly problematic mechanic should be "fixed" by another. Most importantly, it's just not fun.

This really is as simple to fix as giving the board the ability to calculate combine cost of wage and transfer budget and not have it exceed club balance. Ideally it would be a little more intricate than that and take into consideration projected income and such as part of a major overhaul to finances that's desperately needed. 

Quote

You also should have the ability to give the board a reality check and actually negotiate what the transfer, payroll, and scouting budgets should be. If you've spent decades building a few hundred million for the club, you should have the ability to say "NO. We aren't going to throw that all out the window now, thanks".

You used to. In FM2019 I was able to renegotiate my budgets when asking for a new contract and sometimes I could ask the board for a lower wage budget. Neither of these options are available to me in FM2020. 

Edit: There's also Financial Fair Play to consider, which makes even the wealthiest club in the world unable to spend 700 million in a single window. Doesn't matter if you have the money at the time, in 3 years when all the income giving you that money isn't in the current FFP period and the expenses is, you're screwed. So why is the game pushing this kind of budget? It needs to be sustainable. 

Edited by Renyy
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4 hours ago, Renyy said:

https://www.theguardian.com/football/2019/may/22/premier-league-finances-club-guide-2017-18-accounts-manchester-united-city

Not a single club is operating with a higher wage bill than turnover. Most around 60%, some better some worse. By throwing £3 million at the lowest end of my weekly wage (up to 4m if I adjust the budgets) and the player demands increasing as a result, the game is pushing me to operate at 200% my turnover. I would have to win Champions League and sell players for around 50m every season to sustain such a wage budget. While that is possible in FM, I don't think a highly problematic mechanic should be "fixed" by another. Most importantly, it's just not fun.

I'm not sure you are well versed in finance but turnover does not equate to balance. And this is about wage spending which is different from transfer budget.

 

4 hours ago, Renyy said:

This really is as simple to fix as giving the board the ability to calculate combine cost of wage and transfer budget and not have it exceed club balance. Ideally it would be a little more intricate than that and take into consideration projected income and such as part of a major overhaul to finances that's desperately needed. 

but why though if they can make more out of it in the future? sometimes big investments are needed to get more income in the future. its basic economics. you borrow money to make more money in this case which means you are going negative balance. clubs use long term loans to finance their project. once you are going negative balance, the club will take a loan which means you are going positive again. The balance figure can be manipulated.

 

4 hours ago, Renyy said:

Edit: There's also Financial Fair Play to consider, which makes even the wealthiest club in the world unable to spend 700 million in a single window. Doesn't matter if you have the money at the time, in 3 years when all the income giving you that money isn't in the current FFP period and the expenses is, you're screwed. So why is the game pushing this kind of budget? It needs to be sustainable. 

like the people above have point out, it is up to you how you will want to spend the money. Also failing the FFP only means that you cannot enter continental competitions. If you are already a club that would not make it to these continental competitions what is stopping you from investing heavily and strengthening your squad? And you can also do all kinds of smart accounting to spread out your spending without failing the FFP while achieving the same effect.

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Wage bill to turnover ratio is literally the topic of the conversation. Keep your strawmans and insults out. I'm not gonna spoon feed you. 

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1 hour ago, Renyy said:

Wage bill to turnover ratio is literally the topic of the conversation. Keep your strawmans and insults out. I'm not gonna spoon feed you. 

Then make a new topic about it. I'm confused now. The topic here is 'Preventing transfer budget from doubling club balance'. So what are we discussing now?

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