What happens when heavily in debt? - PL

[B80]

Hi all,

I'm on season 28/29 with Newcastle. Last season wage bill increased significantly, but I've always been within budget.

It's currently 6.1mill per week budget, spending 5.9 mill.

Losing around 20 odd mill a month. Current Balance is -178 mill at beginning of November. Doing really well in league so on track to win that, still in CL.

I'm assuming Newcastle have some kind of rich owners or some kind of attribute set 'behind the scenes'.

Whats the likely outcome if I keep hemorrhaging money at this rate? Wondering if it could cost me my job. They haven't given any indication of concern around finances as I'm within wage budget and still have 10 mill in transfer budget. Weighing up whether to cash in some players in Jan, although happy with the squad, no excess as such, all players used regularly, but prepared to offload a couple if needs must. I could easily be over 300 mill in debt by May if this continues at the current rate.

Good thing is I don;t need to sign anyone for ages really as squad is very good and generally young. What has bugged me is the facilities deteriorating and board won;t upgrade due to finances. 

Thanks 

Edited January 13, 2022 by B80

[isignedupfornorealreason]

Erm, if you fail FPP you get some bans.

If you go into administration you'll have points deductions -5pts.

 

-178 is just about within the limits, because TV money for the PL is about 89m+ depending, and if you're in the CL you should be getting some extra pay outs to top up the rest. The board can inject gift loans, I can't remember the limit, I think it's up to around 90 million? That should cover the rest of your debt. 

However, that sounds like it would cover this season but not the following seasons, which is a concern.

 

As for whether they sack you, if you're within the wage budgets, they might leave you alone and just sell your players for you. If you exceed it, they'll use you as a scapegoat and sack you usually. 

[B80]

1 hour ago, isignedupfornorealreason said:

Erm, if you fail FPP you get some bans.

If you go into administration you'll have points deductions -5pts.

 

-178 is just about within the limits, because TV money for the PL is about 89m+ depending, and if you're in the CL you should be getting some extra pay outs to top up the rest. The board can inject gift loans, I can't remember the limit, I think it's up to around 90 million? That should cover the rest of your debt. 

However, that sounds like it would cover this season but not the following seasons, which is a concern.

 

As for whether they sack you, if you're within the wage budgets, they might leave you alone and just sell your players for you. If you exceed it, they'll use you as a scapegoat and sack you usually. 

cheers, I'm playing xbox version so wonder if fpp applies?

[FrazT]

If you are within the budgets and performing at or above expectations on the pitch, the board will have no reason to sack you, especially with large amounts of back end prize and TV money to come.

[phd_angel]

Besides point deductions for FFP infringement, you may see the payroll being slashed next season. But they won’t sack you. Most likely, you’ll see some surprise cash injection or TV income coming from nowhere…

Edited January 16, 2022 by phd_angel

[kevhamster]

On 13/01/2022 at 15:56, B80 said:

cheers, I'm playing xbox version so wonder if fpp applies?

Yes, the same rules apply. There'll be reference to FFP projections in the finance screens. 

[B80]

Over 220 mill in debt in Jan and finances status shown as 'ok' I'm the club overview section.

 

Just sold 28 and 29 year old solet and kluivert for 120 Mill combined to ease it a little lol.

Will maybe try 28 year old kalula,icnacio next for hopefully another 40-50 mill each That would mean over 500k off weekly wage bill in total too. Interstestingly the board are giving me all the transfer fees back in the budget.

 

Wary of offloading too many and weakening the squad for PL/CL push and riches that come from them. Somehow 15 odd points of Liverpool so that should be good, baring any horror shows.

A several wonderkids developing well on loan so may recall a couple of those.

 

I'm open to offers on most of the 'old guard' who are 28 and over, before their resale value drops. Maybe even donaruma as he's on 450k a week, but reluctant to offer him out as may have issues with clubs affording his contract/replacing him as he's genuine world class. One to revisit in the summer perhaps.

 

Edited January 17, 2022 by B80