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Going into the Red... Any Ideas?


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Turnover: $2.25 M

Expenditure: 2.56 M

Loss: -309K

Salary: 1.36 M

Balance: -192 K

I'm a lower league team. That is what's expected to happen by the end of the season. Not too bad for a lower league team, I guess..

Do you guys have any tips for gaining money? I have looked online everywhere for good solid ways to earn money. The best is to get friendlies with top clubs. To me though, that's 'gaming the system' if used too much.

Others ways I've seen:

Parent clubs- Haven't helped me much in the past

Slash all players especially top earners- looks like my only option, just looks unrealistic to slash all my good players. Is it really possible to be successful for less money off of free transfers? I love free transfers, but don't most players just want the same amount of money as the previous person?

Use short contracts- Really like this method. Is there any way to negotiate player's contracts when you first join a club for 1) less years and 2) less money? Seems like every time I try the price goes up?

Maybe it's just me.. but it seems like there should be other things to cut. I would REALLY appreciate some help on this. Put quite a bit of thought into this post, and any ideas would be very welcome. Thanks.

One last question: Should a person gaining 1k-2k a week be 'suspect to the boot' despite how key they are to your team? Wouldn't firing them just put yourselves in an even bigger hole?

One more question: The boardroom page where you can adjust your payroll and transfer budget. Does the payroll include staff wages, or just players?

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Which league are you in? Are you likely to be promoted? Are the board worried about your financial state?

The friendlies with top clubs is not necessarily the money spinner it seems - there are other stadium costs to consider and some members have reported making a loss on so-called money spinning friendlies.

From experience prize money (particularly cup income - found this out whilst on a run in the Champions League) is not included as it cannot be guaranteed - even if there is money available for being knocked out of the competition.

Parent clubs tend to help more to help if you can get better quality players in on loan rather than for the small annual payment - however I would still suggest getting one for that reason alone.

Salaries are slightly high, but not silly, at 60% of turnover - this is the top limit of the Financial Fair Play figure for the English Football League 2.

Slashing players to cover this loss in full would mean cutting from 26k to 20k per week - however you would not need to cut all the way as some of the income would be recovered from transfer fees.

Short term contracts may appear to be a good idea, however this could affect your ability to make money on transfer fees. Additionally some players, particularly older players, may want more money to compensate for the reduced job security.

You could also try having a 'Private Chat' to your players about taking a pay cut, but only if the board say the clubs finances are poor.

Personally with your position I wouldn't call any player earning 1k a week 'suspect to the boot' - you could have a team solely of 20 of them and still turn a profit. I would look more at ability/weekly wage ratio and get rid of players who cannot justify their salary first.

The boardroom page relates to player wages only.

My last point comes from accountancy firm PKF who interviewed finance directors at 62 British Clubs and found that - 66% of clubs were expecting not to make a profit before player trading in their next accounting period. So don't worry too much!

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Thanks. You brought up some good points. To respond:

I'm in the Argentine Second Divisions, predicted to be 12th out of 20th which is probably fair. We have 'Okay' finances. The team is Defensa y Justicia or something. Is there a Financial Fair Play for Argentina that you know of? Maybe on the Rules page? I would check but am away from FM.

Also, I just want to clarify that the above numbers in the OP are the 'Projection' numbers on the Finance page. My actual payroll is around 19k. So not many people in my club are paid more than 1k a week (making them actually some of the richest players). I bring that up because that makes a much more significant difference than in a 1.36 M salary budget. :)

Do you think I could still get a Private Chat even though the finances are okay?

I just wish there was some area of the club I could cut back on to get a profit. Sadly that doesn't seem exist, FM or real life.

Any other ideas out there?

Thanks

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There's no FFP in Argentina (it would be on the rules page) - I only bring that up as it shows that your wage bill is not crazy!

I would not personally be too concerned with your finances.

You cannot get a Private Chat unless your finances are poor.

Looking at Defensa y Justicia - I would be looking to move the left back/left midfielder on 1.5k a week on as his ability does not justify his wages, my initial scout reports showed I could get a decent replacement for 1.0k a week tops. His transfer fee alone should balance the book.

I would definitely look at trying to change role of your U20's coach to cover the first team as well - there is no sense having a U20's coach with coaching staff as small as yours. This will cost extra but the benefits to both the first team and U20's outweighs the small extra costs.

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I've said this in another thread, but prize money at the end of the season and sponsorships are what give you your profits. Most teams even the big ones will makes loses throughout the season, it's only when its over will they be back in the black. Unless the board are concerned about it I wouldn't worry too much

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I'm even worse into the red at the moment in my LLM game. My club (Workington) in BSN is about 600-700 thousand pounds in the red, double turnover, and interest payments are now higher than my gate receipts. I've been managing them for about five years, which is probably the only reason they're still up. I've been staying within my budget, but the board refuses to invest any money - instead they expect me to sell players, which just doesn't happen at this level.

I'm just waiting for something to change because it's been insecure for quite a long time now. Going to be interesting to see if I survive administration.

I know people will say that I suck and should be in the Premier League by now, but I don't play that style of game (scouring the lists of released young players from top clubs, signing known good players, that sort of thing).

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