Losing money due to increased taxes

[Patrick123]

I'm currently in my second season and my finances have taken a turn for the worse. Last year I payed a total of 19 million NOK in taxes, but so far this year I've payed 22 million NOK and I'm just 10 games in. Because I won the double last year my clubs value went from 120 mill. to 184 mill.

The previous season I had a steady increase of about 1.5 million NOK each month, but this year I'm losing 1.5 mill. simply due to the increased taxes. I should note that my wage budgett is about 530.000 and I'm currently spending 420.000

Is there anything I can do about this? Or will I just have to hope for a new double to keep the shi afloat?

PS: My largest monthly expense last year was, just as now, taxes.

 

[Joel`]

If your club gains £64m of value I'd imagine you would be paying more tax.

 

[Patrick123]

The value increased with 64 mill NOK (Norwegian Kroner)

£1 = 9,29 NOK

 

[Joel`]

It's still the same thing relative with the different currencies.

 

[Patrick123]

Okey, but still; is there anything I can do? Because I don't see a way for me to increase my revenous with 2 million NOK every month. I have more than enough money to avoid going broke, but it is still a bit annoying seeing red every month.

 

[Joel`]

I don't know how you can decrease your tax payouts, just hope you earn enough come the end of the season to pay off the losses. Which club are you?

 

[Patrick123]

I'm Vålerenga in the Norwegian Tippeliga.

I doubt that you can lower your taxes, but I hope I can find some way to increase my revenous on a perminent basis, allthough I can't really see how. The clubs in the legue only get 4 televised matches per season and I had allready played mine by the 6th round.

After 10 matches I'm on top of the league with 9 wins and 1 loss (2 pts ahead of last years schedule). There's a 5 point gap down to number 2 and 3. In this league you usually need 65 points +/- to win so I'm in good spirit.

 

[Jamie.]

I always get taxed

 

[BlackSamba]

Am I missing something here? The value of the club has little to do with the amount of tax you pay?! It surely is to do with the amount of income you have no?

So in example, with made up figures:

Income last year - £100,000,000
Expenditure (pre tax)- £ 50,000,000
Tax at 20% on £100mill - £20,000,000
Balance - £30,000,000 profit!

So it could be that...

Income this year - £120,000,000
Expenditure (pre-tax) - £80,000,000
Tax at 20% on £120mill - £24,000,000
Balance - £16,000,000 less profit.

So in conclusion although your revenue may have increased, either to tax bracket increase or expenditure has also increased?! leaving you losing money.

***IRL Norway is notorious for having the highest taxes in Europe, something silly like 60%,.

 

[Chaz Sexington]

I'm Vålerenga in the Norwegian Tippeliga.

I doubt that you can lower your taxes, but I hope I can find some way to increase my revenous on a perminent basis, allthough I can't really see how. The clubs in the legue only get 4 televised matches per season and I had allready played mine by the 6th round.

After 10 matches I'm on top of the league with 9 wins and 1 loss (2 pts ahead of last years schedule). There's a 5 point gap down to number 2 and 3. In this league you usually need 65 points +/- to win so I'm in good spirit.

When I play with Enga, I found the best way to get money was friendlies during the European pre-season. Ullevaal is big enough for some decent revenue At least until our new one gets built at Valle Hovin!

 

[Patrick123]

When I play with Enga, I found the best way to get money was friendlies during the European pre-season. Ullevaal is big enough for some decent revenue At least until our new one gets built at Valle Hovin!

Yeah, I'll get some good ones going when the season is over By the way, have you ever gotten the board to increase Ullevall or maybe even build a new one? With Vålerenga, the only games where you sell out is when you are playing Rosenborg, Lyn or Brann