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[FM22] What's going on with finances - failing FFP with over £1b in the bank


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I have a long term save with Ajax that I play with youth only. I have a healthy profit, keep my wages well below allowed limits and earn the club a lot of money due to (home grown) player sales.

 

However, in 2035 I started to receive messages that our FPP status is problematic and my backroom staff started to recommend selling some players to get our FPP projection into the right track. So I started to dwell into our finances, but can't understand the issue. Our balance is over £1b (yes, one billion pounds), we're debt-free and have no long term commitments (no new stadium on the horizon or anything like that).

Finances summary page shows £34m profit for this season (in February) and over £87m profit for the last season. FFP rules states that we're allowed to have around -£4m loss over 36 months period, so I don't have a clue where is it coming from.

The finance's projection page, somehow predicts £493m loss for the current season. How? From where?

The projection page shows expenditure around £600m per month while in fact it has been around £120-140m per season. Is it just a bug and projection page doesn't make any sense, so I should ignore it?

 

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Edited by Draakon
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  • Draakon changed the title to [FM22] What's going on with finances - failing FFP with over £1b in the bank

The projections aren't capable of much nuance since it's based on what has happened before and presuming that happens again. So a particularly big purchase on a player, or heavy investment in a stadium or big dividend from the board can throw it out for a while. The projection is expecting you to have £500m of expenses in the next couple of months so that's likely what results in a prediction you'll fail to meet FFP.

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Most expenses are fixed, and most income is variable, which will sometimes lead to wonky projections. In this case, it seems to be counting your wage budget as a fixed expense, and this pushes you beyond the FFP limit.

In general, there's no reason to keep a wage budget that's 10x larger than you plan to spend, it can mess up several things like wage demands and FFP projection, without really adding much benefit.

You should be fine in the coming months, but I would keep a backup file until the projection turns green again.

Edited by Nacaw
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1 hour ago, Nacaw said:

Most expenses are fixed, and most income is variable, which will sometimes lead to wonky projections. In this case, it seems to be counting your wage budget as a fixed expense, and this pushes you beyond the FFP limit.

In general, there's no reason to keep a wage budget that's 10x larger than you plan to spend, it can mess up several things like wage demands and FFP projection, without really adding much benefit.

You should be fine in the coming months, but I would keep a backup file until the projection turns green again.

I don't believe that's the case. My wage budget is £7.6m per week, which is rougly £30m per month. That could sum up to £120m until the end of the season, not £400-500m.

 

One thing that might be true is that projection screen tries to predict what's going to happen. In 2031 my bank balance was over £1.2b and as a result the board announced that over £300m is taken and put into the "special investment fund" (in other words: taken away from the club's book). 

That's coded into the game to avoid bank balance growing too high so that it would mess up math and formulas connected to finance part of the game. Sounds reasonable.

When it happened, it didn't affect my FFP status in any way. It is shown in expenses graph, but wasn't classified as 'loss' in terms of profit or loss.

 

Now the projection screen seems to indicate that something like that might happen again, but it projects it as a potential loss in the books, so it would affect FFP.

Firstly, I don't believe we're going above £1.2b just yet (perhaps in 2036 the earliest) and secondly, I don't think it will affect our FFP, as it didn't the first time.

Edited by Draakon
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2 hours ago, Draakon said:

I don't believe that's the case. My wage budget is £7.6m per week, which is rougly £30m per month. That could sum up to £120m until the end of the season, not £400-500m.

Now that I've had a second look at it, and at my own projection page, it looks like it takes the transfer budget as a fixed expense and technically you can still spend that 500 mill before the financial year ends. 

In my experience, the projection page is more or less useless, especially for people who are good at managing the financial aspect of the game. The FFP fail is much more concerning, because I do not believe projections affect that. My feeling is the -300 mill is actually hitting you, but it was covered up by huge profits in previous years so it didn't matter. The financial pages we have in the game aren't very helpful, and really encourage playing with balanced income/expenses rather than saving up. 

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1 hour ago, Nacaw said:

Now that I've had a second look at it, and at my own projection page, it looks like it takes the transfer budget as a fixed expense and technically you can still spend that 500 mill before the financial year ends. 

In my experience, the projection page is more or less useless, especially for people who are good at managing the financial aspect of the game. The FFP fail is much more concerning, because I do not believe projections affect that. My feeling is the -300 mill is actually hitting you, but it was covered up by huge profits in previous years so it didn't matter. The financial pages we have in the game aren't very helpful, and really encourage playing with balanced income/expenses rather than saving up. 

Actually, I don't think that this -300m affects it, because at this point FFP page says that 'current' profit for the period is £408m and projection is around -£40m.

If it had taken this - £300m into account, it would be shown in 'current' number, right?

 

I think you might be correct assuming that projection expects me to spend at least £500m of transfer budget and if that's the case, it would turn my £408m profit (+ some prize money or TV revenue) into -£40m loss.

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