Hello mate! Welcome back to today’s episode of The Soccermanager Blog as we continue our look into the ‘Finances’ page located on the singular player mode game SM23. Yesterday’s episode was a quick intro looking into what this week’s blogs will be on. So let’s not muck around and get into our financial bag! 💰
Like I mentioned yesterday, A soccer club is not a business that receives weekly profits due to many different circumstances pertaining how the business is ran. The way in which a club is profitable is via end of season bonuses that are made available based on the team’s performances and other types of revenue that we will be going into today.
Firstly, let’s start off with a summary of the projected amount that the Financial Directors believe will be attained throughout the course of the 22-23 season:
We also have to take into consideration the things that are taking money out of the club’s pocket:
DETAILED VIEW (BALANCE SHEET)
The above image is the main gist of what is needed to know in order to keep the cash flow running on green throughout the season. This is the time to introduce you to the term ‘Balance Sheet’. Put simply, a balance sheet is an identification of the different things within a business that are brining money in and taking money out. The different things that are bringing money in are known as ‘Assets’ or ‘Income’, while the things taking money out of the business are known as ‘Liabilities’ or ‘Expenses’. Some Liabilities can actually generate income but we won’t go into all that unneccessary detail.
ASSETS
In the above photo we have a list of all the items within the club that are brining money in. The cash is broken down into weekly and seasonal income with the income that occurs at the end of the season usually being the one that provides the most bonuses based on how the season went from a soccer point of view. Now then, let us briefly go through each item on the list for a better understanding of what they are:
Season Ticket Receipts (I think it should be Recipients and not Receipts, but whatever): These are supporters of the club who decide to purchase a single ticket which allows them access to every game they the club plays at home throughout the course of the season.
Gate Recipients: These are fans who are not season ticket holders and instead decide to purchase their tickets at the gate on the day of a match or during the weeks of a match. Away team supporters are also considered here
TV Revenue: A club gains a percentage of the amount that each broadcaster obtains due to the billions of people who pay for watching a match live when it is showing on TV
Sponsor: This is the income that is generated by signing a shirt deal as well as other different sponsorship deals that are placed on the table by many different brands.
Merchandise: This is income generated by every club item that is sold to a consumer whether in club shops around the globe or on the club’s website
Transfer Money in: Income that is generated via the selling of players
Cash Injection: Normally, A cash injection occurs when the owner of the club decides to pump money into the club based on different circumstances such as if the club is doing well on the pitch or if the club is struggling and needs some financial assistance for potential transfers, for example
Prize Money: Prize money is income generated via cup competitions or end of season league position
Other income: Some other things that generate income are the club hotel, club vendor revenue, VIP ticket revenue, media outlet revenue etc.
I hope this was helpful Soccermanagerite! 🙌
In tomorrow’s episode, we’ll be going into the items that are considered the “vampires” of any business. See you then!
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