Can someone please explain to me what the different types of Sugar Daddies do (ie Pros and cons) and also what happens if your club is a PLC?
Thanks in advance
Sugar Daddy means that the chairman of the club, will invest his own money into the club. Thus means that if the club goes into serious debt, the chairman will help the club by putting in his own money which sometimes saves them from administration. However, the only problem i can think is that they may take the money out of the profits for themselves.
If you're talking about different types...i'm not sure in FM11 but in FM10 there are None, Foreground, Background and Underwriter. Is that what there is for FM11 too?
Well what i know from FM10 is that:
None - Just not a sugar daddy?
Foreground - They will throw a lot of money at the club to spend and aren't scared of spending their money
Background - They spend enough to make them a force in their current league but if they go up a level or two it would no longer apply.
Underwriter - They don't give the manager any extra transfer budget but come the end of the season they will always cover any loss the club is making and not expect the money back.
Hope that helped you
Also a PLC allows the public to buy certain amounts of shares in the club, normally the chairman has majority of the shares while other shareholders own the others. This could be a good or bad idea as fans can control the club meaning the board has less say in how things are run. This means that you might be able to persuade them to increase the stadium capacity or invest in youth players or give you more transfer budget. However, the bad side of this is that you have to pay dividends at the end of the season and this means that you lose certain amounts of money depending on the percentage.