Debt

[unbelievable32]

Hi,

I have always wondered why people are so worried about debt. If you have a transfer budget and everything is going well isn't debt the board's problem? Am I missing something here? Why are people so desperate to get rid of debt?

Thanks

 

[TheBetterHalf]

Hi,

I have always wondered why people are so worried about debt. If you have a transfer budget and everything is going well isn't debt the board's problem? Am I missing something here? Why are people so desperate to get rid of debt?

Thanks

There is a difference betwen having outstanding loana( dept) and having red numbers. The thing people worry about is the red numbers as it in the end will make your club go bankrupt.

 

[crylis91]

debt affects your finances so to speak..interrupt your cash flow..

 

[Quasit]

Hi,

I have always wondered why people are so worried about debt. If you have a transfer budget and everything is going well isn't debt the board's problem? Am I missing something here? Why are people so desperate to get rid of debt?

Thanks

Debt in itself isn't bad as long as the club can pay the debt and not go in red and take more debt to cover the previous one.

More money the club has more money there's usually available for transfers. That's basicly why many want to lower the clubs debt levels.

 

[unbelievable32]

There is a difference betwen having outstanding loana( dept) and having red numbers. The thing people worry about is the red numbers as it in the end will make your club go bankrupt.

What is red numbers and how do I check it? And what is the difference between red numbers and outstanding loan? Sorry, I'm a little new and a tad bit confused

Thanks

 

[Quasit]

What is red numbers and how do I check it? And what is the difference between red numbers and outstanding loan? Sorry, I'm a little new and a tad bit confused

Thanks

Red numbers = Losses
Outstanding loans = Loan amount not yet paid off by the club to the givers of the loan.

You can check all these in finance page

 

[unbelievable32]

so when there are any red numbers, the club is in a bad position?

 

[TheBetterHalf]

What is red numbers and how do I check it? And what is the difference between red numbers and outstanding loan? Sorry, I'm a little new and a tad bit confused

Thanks

You will find it in the finacial information and its called "Balance"
Red numbers is a word for a negative number, black is for a positive number. Think about the cashflow/balance just as your privat account that has a credit function. Now, you might have a 20.000 credit on that account and if you have used 18.000 of it, you will be 18.000 in to the red. If you have 2.000 on it, you will have 2.000 in black.

If the numbers are in red, you will pay interest on that money. The bigger the club, the bigger credit you will be able to have. If not having any control over it, you will get sacked and the club will go into administration, meaning that the bank will take over the club.

 

[unbelievable32]

Ohhhh right, thanks, i get it now