The Monthly Instalment and managing your finances thread

[Raikan007]

This is a quick little guide/benchmark for buying players using the "infamous" Instalment method:

1) if you can afford to buy players in full, do it as your future Transfer Budgets will not be affected and you wont be owing money every month!

2) if you have no money but you would like to buy in some key players, then use the 48 month option, just remember though, that you are going to be paying money every month for 4 years and if you do this for say 4 players, you could easily be paying close on and more than 1million a month.... which is alot of money and can lead to bankrupcy and even Administration...

so this is something that you need to carefully consider when using this method...

3) if you are going to do this method (which we all do) then you are going to have to start winning some competitions and getting placed well in the League (European Qualifications etc etc) to enusre that you can generate the money that is owing and increase in turnover from the more games you play in these competitions...

4) another method that I use is that instead of selling players for upfront cash, I sell them over a 48 month period, I try and get to a point that the money I am spending every month for my new player is countered by the money coming in from my old player... and even more so that I would be getting in money every month rather than spending...

So the moral of this story is:

1) Do it for key players, but ensure that you do not over do it
2) For the 1m player, do it over 48 months as you will only be paying 21k a month for 4 years which is not much...
3) Be sure to try and counter the expenditure by selling players over 48 months
4) Keep an eye on your finances...

Raikan's pretty much spot on in what he' saying..

Always have one eye on your finances as it's very easy to go into the red and not all owners are willing to keep bailing you out. Re-vamping your squad using monthly installments is a pretty bad idea, considering clubs like Stoke don't make that much profit especially if you are adding £1m on transfers each month for the next 4 years and an extra £200 - £300k per week on the wage bill, this will also massively effect any future transfer budgets and the likelyhood of upgrading any facilities.

afaik, if you have £0 budget you can't buy any players...

monthly instalments works thus: (at least, I'm pretty sure this is what happens)

When you buy a player and pay in instalments, the initial fee AND the first years payments will be taken from your budget (this might be adjusted if the purchase is in the January window to the first 6 months of the instalments - not sure). Subsequent transfer budgets will be adjusted to take into account the payments already owing.

So, if you want to buy a player for £1 million and pay half up front and the rest over 2 years you will lose £750k from your transfer budget.

If you choose to pay the whole amount in instalments over, say, 4 years, then you will lose 250k from your transfer budget initially.

Basically, "initial fee" + "first 12 months instalments" = "total loss from transfer budget"

someone please correct me if I'm wrong, but that's the way I work it out when buying players and it seems to be correct (or pretty close).

Here are some tips on controlling your finances and increasing your monthly turnovers into profits:

1) Get Feeder clubs overseas for merchandising and marketing...

You should ask for a feeder club `to increase profile in another country`. This is a good way to raise merchandise sales as they help you to build a fan base in another nation.(mainly in Japan, United States or Saudi Arabia) I managed to get 3 feeder clubs for financial benefits and my merchandise sales are 25m up compared to first season and I`m currently in my 3rd season.

2) buy in players from Asia (or even better yet, the country you have your feeder club in)

3) Adjust your wage budget and put all your extra transfer budget into your wage budget (this will earn you interest and when you do need to buy a player, a lot of the time you can just adjust your wage budget at the touch of a button)

4) Be dilligent in offering contacts and bonuses to your players you dont want your main striker scoring 25 goals a season at 44k each

Both have their uses. Upfront gives you peace of mind knowing that you wont have to pay anymore in the future or you are not too sure about your financial stability. Paying via installments means you can get more out of your budget, but do so with caution. If you overspend using installments the long term effects can be disastrous.

Assume you have a squad of superstar players with yearly wage increase clauses, high appearance fees, goal bonuses and so forth. While players like Stevie G may be irreplaceable, your players like Cole and Kuyt are not. And they're earning what, 80-100k? That amounts to 640-800k/month.

If you're losing 7m/month, cutting two players like that loose will cut your losses by about 10%. Bring in young prospects - you know which ones are good, you know which ones can cover their positions. They'll probably ask for wages of up to 50k, lower appearance fees, lower goal bonuses etc. You'll really slash your running costs by bringing in the young kids.

You could also have more squad than you can support - so get rid of surplus players. I know it's great to have depth, but you don't need 6 DC's just because 'they're all good', or 'what if someone gets injured?'. I've had that problem - just exercise some discipline in the transfer window and use kids from the youth system to cover up for the guy who's covering for your regular DC. Usually won't last for more than a game or so and it gives the kids some first-team experience, which is always nice - especially if they're hot prospects.

Also, attract fans. A full ground can bring you in a lot of money.The better your results, the greater the attendance. Also, better performances mean more TV revenue. If you build it (an awesome squad), they (people with money) will come. Continental competition also always brings in lots of money - expect merchandise, match day, TV and ticket revenue, as well as prize money, to fatten the account.

Most importantly, though, is to keep your squad bill under check. Take into account how much the club is earning NOW and adjust your squad's wages to meet that figure. No point in counting your chickens before they've hatched, or you could end up like Leeds Utd.

This ^

Stop buying players for your first team and concentrate on building your youth team by poaching young talents from other clubs on the cheap.

It relies on having good youth facilities, enough spare cash to poach talent, excellent scouts to find the talent, great coaches to train them and probably good older players to mentor them too.

these are all ways to make money, if you want a really good look at how to make profit, take a read through here

Tips on making a Profit

this was just more for monthly instalments but I thought that Finance needed to be covered as well...

hope this is useful,

Neil

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[Vanjagl]

If you build it (an awesome squad), they (people with money) will come.

. I fuc*ing lold XD.
Nice tips, learned quite few things. Looking foward to new guide

 

[daisuke]

Oh, does using monthly installment means that the budget is not being used?I cant remember which FM, but I tried using the montly installment method but the transfer had been cancelled coz I do not have enough money in the budget. I havent used it since then.So say that you offer 10M upfront and 5M in 24months, only 10M is taken from the transfer budget?Also, I tried to do this once, but I noticed club dont accept it, but when I offer more cash upfront they accept it, though when I offered lots more using the monthly installment, they reject it

 

[Raikan007]

the budget is being used, you would at least need the 1st months insallment upfront if you are paying the full amount over 48 months...

So say that you offer 10M upfront and 5M in 24months, only 10M is taken from the transfer budget?

10M upfront plus 200k for the 1st months installment

I offer more cash upfront they accept it, though when I offered lots more using the monthly installment, they reject it

it just depends on the club and player really, clubs prefer the money upfront so that they can use it immediately to look for possible replacements

 

[King Salas]

Really good guide. Personally, I avaoid using monthly installments, as I try and keep my clubs sustainable and only spend what I have. I always try to not spend my entire transfer and wage budgets to increase profitability. However, like you say, as long as you are careful and can cover the monthly installments by selling players with monthly installments also, it is an effective solution to signing players.

 

[perfecto]

managing Chelsea... went from rich finances to 'okay'... good thing we're bank rolled by a russian mafia, Roman injects 50mil every year!!! the problem now is we're building a new stadium... from 47,00 capacity to 51,000 capacity costing 245 mil offset by selling stamford bridge for 115 mil... dunno how that will work out. ZOLA STADIUM!!!

 

[Raikan007]

in my previous Sc Freiburg save I did very well and won the League after 3 years and won the DFB Pokal two years in a row as well as getting to the Europa League final (lost 1:0 vs PSG)

the club was valued at 50million, they took out a 55million loan to build my new stadium and informing me that we start loan repayments of 400k over the next however many years....

I decided to leave that and start a new game for 11.3 so can tell you how that went..

 

[Jaggers]

This states that you can have three feeder clubs on a merchandising/revenue basis? i thought you could only have 2?


1) Get Feeder clubs overseas for merchandising and marketing...


You should ask for a feeder club `to increase profile in another country`. This is a good way to raise merchandise sales as they help you to build a fan base in another nation.(mainly in Japan, United States or Saudi Arabia) I managed to get 3 feeder clubs for financial benefits and my merchandise sales are 25m up compared to first season and I`m currently in my 3rd season.

---------- Post added 28/07/2011 at 09:02 AM ---------- Previous post was 27/07/2011 at 01:14 PM ----------

does any one have a firm answer to the above

 

[Raikan007]

he did say he managed to get three before, I have not tried for more than two...

 

[TonyCRO]

Will Asia or SAD tour increase my popularity there. Or tour in county where is feeder club?

 

[Raikan007]

its not proven but logically it would be ideal to tour the country you have the feeder club in...

 

[dngrs]

shouldnt this thread be added here http://www.fm-base.co.uk/forum/fm-2.../63899-football-manager-2011-link-thread.html ?

 

[mbaudrier]

The best way to get rich :

- get interesting end of contract players each year, loan them for 1 year with 100% of salaree paid by the other club, and sell them at the end of the season (really easy when u are playing with league 1 or league 2 clubs).

- Buy player with 48mths instalments and always sell them with cash front. You don't have to study finance (which I study!) to understand that it is better to have 100k now that 25k in one year, 25 k in two year.. etc.. just because with this 100k u will get another player for 48ths instalments et then u will sell him after for cashfront. Do it again and again.. yes u will pay a lot of transfer charge every months (more and more every year) but u will always begin with a higher balance every year.

This game is too easy with professional clubs..