This is a quick little guide/benchmark for buying players using the "infamous" Installment 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 ensure 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...
Originally Posted by Aannddyy
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.
If you choose to pay the whole amount in installments over, say, 4 years, then you will lose 250k from your transfer budget initially.Originally Posted by Lazaru5
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.
Basically, "initial fee" + "first 12 months installments" = "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
Originally Posted by Tharros
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.
Originally Posted by TommyKae
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.
these are all ways to make money, if you want a really good look at how to make profit, take a read through hereOriginally Posted by Miller11
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.
Tips on making a Profit
this was just more for monthly installments but I thought that Finance needed to be covered as well...
hope this is useful,