Stuck at 10% Transfer Revenue Available.

[PaddyJunior]

Hi folks, I am having an issue where i'm stuck at the board limiting to me of only 10% of player sales being available to spend in the transfer market. Now I know after my first transfer window my player wages did jump up a little and there wasn't much left in the pot however, I was still below my wage budget and a few mill left in the transfer kitty.

I noticed over the next few months the transfer budget was dwindling even lower than what was left, then I get an E-Mail stating the available revenue from sales would decrese to 50%, then a while later 25% untill eventually it went to 10%. That was back in October, apparently the chairman gave us a loan of £14m to make up for our loses (i'm currently in 2018 and the loan is 53k per week un till 2043).

So anyway i'm in January now, I sold off some players, we're financially solid, i've lowered the wage bill, my wage budget is way higher than what we're spending but yet i'm still only recieveing 10% of the tarnsfer revenue, can anyone shed any light on why this would be? we're well withing any financial fair play, wage bill is low, below i have attached screenshots of my current financial situation and if anyone could help i'd greatly appreciate any input.

Thanks

(chairman loan details) http://prntscr.com/l9orco

(projections) http://prntscr.com/l9ori2

(wage structure) http://prntscr.com/l9oros

(budget) http://prntscr.com/l9os1s

[Snorks]

The finances go much deeper than your budgets - it sounds as if the club was losing ,money somewhere and it was your TFR budget that took the hit. Just because you are under transfer and wage budget does't mean the club is performing solidly financially.

If you are back on an even keel, are paying the loan of without a problem, and have good profits forecast, then your cut of player sales should increase again - but it does take a bit of time.

[PaddyJunior]

Originally posted by Snorks:

The finances go much deeper than your budgets - it sounds as if the club was losing ,money somewhere and it was your TFR budget that took the hit. Just because you are under transfer and wage budget does't mean the club is performing solidly financially.

If you are back on an even keel, are paying the loan of without a problem, and have good profits forecast, then your cut of player sales should increase again - but it does take a bit of time.

Hi, thanks for your reply, to avoid this ever happening again, what else should i be looking at other than what ive posted above? the screenshots ive listed are what i thought were important, if it goes deeper than what i can see then how can i avoid it in the future? what should i be looking at?

[3am]

There is little you can do beyond that which you are already doing. Some boards are financially responsible and some are not. Ultimately, it is the board's responsibilty to enusre the club's finances are in order.

From the information you have provided we can see that the club is forecast to lose £56.56m this season.

Expenditure is forecast at £83.13m - projected Turnover of £26.56m = projected loss of £56.57m this season.

Wage costs are projected to be £46.06m this season. That is £19.5m greater than turnover. Note that wage costs are project to be reduced next season and the following season.

It looks as though the board is expecting promotion this season and relegation the season after. Your transfer budget is expect to rise next season and falling sharply the season after.

Best advice I can give is to be prudent and maintain tight control over the wages. Expect and plan for lower transfer and/or wage budgets next season and for the foreseeable future. A projected balance of -£200m next season is worrying.

Overall, the information provided looks like a relatively small club that has risen rapidly through the divisions. It's rise in stature has outstripped it's infrastructure.

[PaddyJunior]

Originally posted by 3am:

There is little you can do beyond that which you are already doing. Some boards are financially responsible and some are not. Ultimately, it is the board's responsibilty to enusre the club's finances are in order.

From the information you have provided we can see that the club is forecast to lose £56.56m this season.

Expenditure is forecast at £83.13m - projected Turnover of £26.56m = projected loss of £56.57m this season.

Wage costs are projected to be £46.06m this season. That is £19.5m greater than turnover. Note that wage costs are project to be reduced next season and the following season.

It looks as though the board is expecting promotion this season and relegation the season after. Your transfer budget is expect to rise next season and falling sharply the season after.

Best advice I can give is to be prudent and maintain tight control over the wages. Expect and plan for lower transfer and/or wage budgets next season and for the foreseeable future. A projected balance of -£200m next season is worrying.

Overall, the information provided looks like a relatively small club that has risen rapidly through the divisions. It's rise in stature has outstripped it's infrastructure.

Dude, thank you ever so much for your reply. Yes I am portsmouth,we're in-line for a third promotion in a row so yes it has been a rapid rise for sure. When i took over they'd just been promoted to League 1, this season we're on course for promotion to the premier league.

The only thing that does worry me is that they're projecting a £200m loss next season, that seems rather extreme to me. What's that based on exactly? Even if we were to be relegated, sure our wage bill will obviously be higher next season due to increse in wages but there's higher prize money, higher gate receipts (were also increasing our stadium atm) higher TV money, I can't see how any situation in the premier league next season leads to a £200m defecit? especially since we have money right now. Surely the only was is up from here in terms of finances no?

It all seems rather extreme to project a £200m loss, especially since we're flying in the championship, we've played 4 times this season against premier league clubs, (Newcastle won home and away, beat chelsea 3-1 in the carabao cup and beat watford and swansea) so this "projection" can't surely be based on them expecting relegation? and if it does, what's it based on? and am I stuck at 10% transfer revenue because they "think" we'll lose a bunch of money by the end of next season?

[Snorks]

Just because you see yourself as in wit ha good chance of promotion, and all the EPL riches that go with it, the board have to plan for not achieving it this season.

You have invested a shed load into stadium expansion which will impact other financials greatly.

So at the start of your first Championship season, the board will have to have been ready, with a plan in place, should you get relegated first time round. So they may have stretched as far as they can in terms of transfer and wage budget bearing in mind this spend may have to be supported from League 1 revenue next season.

They have also had to find the money for stadium expansion - a huge commitment.

So you are doing well in your first championship season, so the board will re-think the financials at the end of the season. Work out a worst-case scenario and plan for that.

If you get promotion to EPL, the budgets will change upwards, but worse-case will be relegation for the board to plan for.

With rapid-rise saves, you often find the financials and budgets lagging behind where you actually are because of this. Currently, you are pushing at the top end of Championship, but probably working with a L1 financial plan because the board didn't expect to be where you are.

I think budget and financials are only reviewed once or twice per year by the board, so can be a bit behind. Be thankful you have a sensible board.

The alternative would be the Chairman saying "look, we could get promotion if we allow our manager to spend another $20mil let's give it to him"
"Yes Mr Chairman, but what if we miss out on promotion - how do we cover it?"
"Ohhh don't be soft lad, let's worry about that when it happens, we will get promoted I can feel it in my water"

[3am]

I agree with everything that Snorks has said.

Chairman and directors, collectively "the board", each have a boat load of attributes in the same way that players and staff have attributes. You can't seem them ingame - only in the editor. Each board, therefore, has a unique flavour.

Unstable clubs are a challenge for any board. The rapid rise in divisions creates an organic instability when it comes to financial management. This is scary stuff for boards. They have this tiger by the tail - they don't want to shoot it but they don't want to get eaten either.

Your board seems to be handling it prudently. The forecast, for now, looks like the worst case scenario.

The board are funding your wage bill at £19.5m greater than turnover. Together with the stadium expansion and projected losses (if everything goes to pot) of £178m over this season and the following two, you should think of 10% of sales restriction as a positive measure of how much the board trusts you rather than how much the board is holding you back.

For now, just work with the restrictions in place and keep tight control on the wage bill.

Don't forget that plans change.

[PaddyJunior]

Thanks ever so much for everyones replies. I guess I never looked at the situation in such depth.

We're unbeaten this season in our first season in the championship, I got very lucky last season with a player called Stephane Bahoken who we managed to snap up for less than 300k, he banged in 40 odd goals, broke every record going and we managed to sell him for big bucks, Krasnador from Russia came in for him, what with that big transfer, sold off a load of players and totally revamped the team once we were into the championship. So it has been a sharp rise but with that our wage bill is massive with signings such as Lazar Markovic eating up a lot of the wage but you have to speculate to accumulate right?

Anyway so after all your comments it makes perfect sense, we will be a premier league team next season and most likely we'll have to use our current team for most of it and hope for a decent finish next season and keep us stable financially.


Then hopefully the revenue and the projections will appear more positrive if we can prove ourselves as a solid EPL team.

[PaddyJunior]

As you said before, things change, i'm now into march and they increased it to 100%, the projected losses seem a little lower and a little less extreme.

http://prntscr.com/lakba7

[3am]

Happy to hear everything is coming good for you.