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 How to make Money on FM

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Posts : 68
Join date : 2012-01-20
Age : 29
Location : Ireland

PostSubject: How to make Money on FM   Sat Jan 21, 2012 12:24 am

I consider myself very thrifty when it comes to financial management. This guide will give you useful snippets of information when it comes to making profits, be it monthly profits or end of year profits. It will also tell you when and if you should cash in on your players. These findings are just ones that I have found and im sure there are ones I have missed. If that is the case please let me know and i will add them to the OP. click on the spoilers to read the text.

Section 1: Wages

Generally it is advised not to exceed 80% of your total wage budget. so that would be no more than £800k out of every £1M. Most people think if you get a budget of £1M you should spend it all. That is far from the case is this is the maximum acceptable level and even being close to this figure will result in small losses. Some clubs tend to have enormous wage budgets that are unwanted. An example is Liverpool who spend £1.4M every week to a pretty average team. You have the likes of Maxi, Carroll, Downing, Henderson, Cole, Aqualani, Kuyt, Johnson, Agger, Gerrard and Carragher on inflated wages. None of these players would be considered world class except maybe Gerrard. That is 800k in wages for 11 players who arent indespensible. This team despite their wages would do well to finish in the top 6 of a league. Consider the wages screen in depth. You will see that wages are split into how important your players are (key player,rotation etc.).

As it goes you should have maybe no more than 3 key players. These are your must have players that will make the difference over a season. They may make up to 8.5% of your wages you use each. So 8.5k a week for every 100k used. Maximum 255k/1M
The same goes for first team players. You should not have more than 3 first team players. They can earn up to 6% of your wages each. So this would be 6k a week for every 100k used. so that would be 180k/1M
Rotation players are a dilemma. They are of good quality but not definite starters every week. You can have between 5 and 8 players in this category. They should not be offered more than 4% of what you spend on wages each. So that is 5k out of every 100k. Lets take the maximum(Cool as an example. 360k/1M
Backup players generally dont play often so they should be only offered 2% of your wages each. You should have no more than 8 back up players. This works out at £2k for every £100k used each. 160k/1M
Hot prospects should not be offered more than 1% of your wages so this is 1k for every 100k used. You should have no more than 6 hot prospect players. 60k/1M
Decent young Players are pretty useless and never will progress to your first team. They should be kept to a low number and sold off for small profits.

This allows for 30 players at a total cost of £1M per week. This would be an ideal set up for a world class team winning league titles and cups consistently. Scale back depending on your clubs aspirations.

Section 2: Transfers and Transfer Budget

In this section we will deal with both buying and selling players and also scouting. The ability to work the transfer market well seperates good managers from great ones. This can be a valueable way of making your club big money if you find a system that works with you.

Buying players is the most essential thing you will do as a football manager. It is important not to pay over the odds for a player as if they fail you can be lumbered with a flop for years. Most managers make the mistake of buying big name players for extrordinary fees. However with some careful scouting you may find a player of similar ability or potential for a fraction of the price. The golden rule is not to pay large sums of money for players nearing their prime. Players like David Villa and Wesley Sneijder are unrealistic transfers as they are in their respective prime of their careers and will cost an arm and a leg to buy. Generally dont buy a player over the age of 24 as after this they have almost reached their peak and will be more expensive. The exception to this is an occasional free transfer who is already in their peak or maybe past it who can still improve your team. A useful tip is to loan a player if you are unsure he is suited to your team. Always negociate a future fee for them as if you like the player you can get them for the fee you agreed. If it doesnt work out you can send him back with no obligation to buy. After the first season always look out for regens as this is the cheapest way to build a top squad. When offering contracts never settle. You can negociate with agents and offer lower than they ask for. Generally I find you can save quite a bit in agent and signing on fees aswell as basic wages.

Selling players is just as crucial for a football manager. The important thing is dont sell players for less than their worth unless there unwanted. The best time to sell players is when they are in their peak(28 for outfielders, 32 for goalies). This will command a higher transfer fee and also ensure you get rid of the players before they start to decline in value. When selling a player make sure they have at least 2 years left on their contracts as any less will result in the possibility of losing the player for nothing. Clubs also wont pay near as much for a player who is in the final year of their contract as if they had a couple of years to run. If you struggle to sell players try offering them out to clubs. If by chance you are left with a player you dont want who earns a lot in wages offer them out on loan. Even if the club cover half his wages he will cost you less and may play regularly which will raise intrest in him. If a player demands money to move to a smaller club it is generally a good idea. Sure you have to pay a portion of their wages but it frees up some much needed funds. For example I had to get rid of Joe Cole who earned 90k a week. He would move to West ham if I paid 30k a week of his wages. This made sense to me as it freed up 60k in wages rather than let him rot in the reserves. Avoid releasing players for a fee as you can usually get rid of the player on a free transfer which saves you paying out the rest of their contracts.

Scouting is the best way to find bargains. There are several different ways to scout. You can look for out of contract players, first team players and youth prospects. It can be a good idea to scout all major junior tournaments such as the youth world cup and the french youth invitational. Another option is to scout developing countries, reserve and youth leagues. This option generally finds some talents available for nominal fees. I find it best to have about 6 scouts. Send 5 out on assignments and keep your best one at the club. If your scouts come back with a promising player send your best scout to watch them. Generally your other scouts dont need to be as good as your cheir scout as they only find targets, good points for a scout are judging ability and adaptability. Your cheif will pass final judgement. he should have good judging potential and ability.

Section 3: Parent and Feeder Clubs.

Parent and Feeder Clubs are a useful way on hepling you make money and also help save money.

Parent Clubs are generally for small reputation teams. The benefits from these usually involve you being paid a fee by the larger club. You can also ask for a parent club to be offered talented young players on loan and they sometimes offer you financial help and one off upgrades of your facilities.

Feeder Clubs are for large clubs and you may request one for a variety of reasons. You can ask for a feeder club to increase your scouting range. These clubs can help find new talent in other continents. These clubs usually dont ask for large fees to be associalted with you.
Commercial link Clubs are best for clubs with Continental and Worldwide reputation. These clubs tend to be from China, Japan, Korea, The United States or the Middle East. These clubs may cost you a couple of million pounds a year to be associated with but they help expand your fanbase and als your merchandising revenue. To maximise revenue from these clubs play a tour of their country in pre season which generates interest and also try sign a top player from that country. The merchandising sales from this can really benefit. With a Commercial link you can easily double or triple your merchandising inside 2 years. They also help expand the fan base, and more fans mean higher gate receipts.
You can also look for feeder clubs to secure talented youngsters from their academys. This can be useful if you pick a team which has a good record of producing quality youngsters. To reap the benefits from this you should have that country loaded as a playable league as you generally get better regens.
Finally you can have a feeder club to offer out your youth prospects on loan. This gives them game time and helps develop them. The more they develop the more desirable they will be and will be in turn worth more should you wish to sell them.
To be continued...
Stuff to do:
Section 4: Staff

Section 5: Marquee Players

Section 6: Stadium

Section 7: Sponsorships and Prizes

Section 8: Overview
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