
Balance management
Written by MattZTHIn order to be successful in Football manager you need to be good at managing finances. To manage finances well you need to follow many key steps to make sure that you can stay way over the line of putting your club into debt. In order to do this you need to be smart with your money and not be rash and spend it without care as any club can be affected by debt because of careless actions.
The first thing you want to do is inspect the club’s finances, looking over the projections and where the money is coming from. This is very important as often clubs will be bringing in big money from sponsorships which could be running out in a few years which could cause the club to possibly lose out on serious cash once the deal is up. So make sure you take this into consideration when making big changes to the club as it could set you back in later years.
The second thing is always to look over player contracts and make sure you know if there are any clauses that could be triggered that will cost you money, such as yearly wage rises and appearance clauses that could make you have to give their previous club money. Always be aware of this and keep an excess of transfer budget and wage budget as you do not want to be caught out not realising that you are costing the club money for a good few months as by this time the debt you have run up could be in the millions.
If you are looking to make the infrastructure of the club better, always make sure you invest wisely. Have a plan on what your going to do whether it be investing in the youth academy or buying players, but do not buy what you do not need as this will cause you to have to spend much more money than is necessary. For example, there is no point in trying to upgrade the Allianz Arena (Stadium of Bayern Munchen) for £5 million pounds when it is already a state of the art facility, think before you spend! However, if you are still adamant of buying new youth and training facilities, make sure the club can afford it, it means you will be spending millions which you then won’t have so make sure you are in the club for the long haul as it can make or break a season. Injuries may mean that you need to buy players but because you went for the new training facilities, you can’t afford it so do not be silly. The board won’t give you money they don’t have.
Look at your finances every month or so just to see if there is anything to be concerned about. Make sure you keep a close eye on these issues because they can bite you in the ass if you are careless. Many clubs have shown the advantages of being financially secure and have used this security to become successful in the footballing world. It is not nice to be a manager having to beg for funds from the board because the club carelessly spent money on facility upgrades, when they cannot afford them in the long term.
To sum up, you need to monitor your budgets, you need to know how much money you’re investing into someone and calculate if it is worth the risk. It is always about balance, and if you do not balance everything and take it into consideration you will fail. It is always nice to be known as a financial genius and you can do this by being careful and thinking before you spend. Follow these steps and I am positive that you will succeed.
Discussion: How to improve your club's finances on Football Manager
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