Tal_Hides

I'm just curious as to whether the AI takes into account things like loan debt and monthly repayments when it manages its finances?

In my latest game I've just seen Newcastle docked 9 points for going into admin in February 2010. Now in this game Newcastle are not being a big success anyway, they weren't in any European competition so obviously they weren't expecting any extra revenue from that. Average attendance is still around 48000 so no problems there. Basically all their finances for the season should have been entirely predictable, yet I noticed that this season they also spent a whopping £71m on new signings.

When you can accurately predict your income for the season to come how is it that a team can put themselves into administration. I know it's often the case that a team will spend big, fail to meet expectations and so the following season will end up bankrupt because they haven't got the extra income they were after through European qualification. But to be able to go into admin in the same season as you spend all that money seems a bit ludicrous, basically once they'd signed so many players it wasn't going to matter how well they did, because they'd never make it to the end of the season to get big money back in. I just dont think ANY owner would ever be so shortsighted as to bankrupt his team in the same season as he spends big, you spend big based on assumptions that you will generate revenue later, in this instance, Newcastle can't have failed to generate the revenue predicted because there was no extra income expected in the first place.

I just wonder whether this means that when calculating transfer and wage budgets, teams fail to take into account what their loan repayments and interest rates are going to be that season, and so a lot more comes out of their balance than was ever calculated. If this is the case it would explain why so many people complain of lost money despite having a huge cushion between there actual wage budget and their allocated budget.