Financial director

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The financial director (known before as "Economist" and as "Accountant") is a specialist that is especially useful for clubs that have a strong financial position.

He increases the amount of funds a club can keep in cash, before the Board intervenes. It also increases the speed with which the Board will release money to the manager when cash runs below the cash reserve limit established by the Board.

Board

Every club board sets a limit to how much money is at the managers direct disposal for expenses such as salaries, player transfer fees, or arena projects. Any assets beyond this working capital will be reserved by the Board to ensure the future stability of the club. If needed, the Board will release money from the reserves into the working capital, but only at a measured rate.

Normally, the Board limits the money available in cash to 15 000 US$. Hiring a Financial Director increases the Club’s economic flexibility. When you run up debts amounting to - 200 000 US$, your board will prohibit you from purchasing other players, replacing your coach and doing anything that would take the debt beyond that threshold.

Curiously, each Board act appears to be aimed at sabotaging or seriously slowing down the team development. Reserves were created to act as a buffer and the cash held by the Board will only be released when the Board deems it necessary. In the same way, money loans are limited to prevent too much indebtedness to the Hattrick Central Bank.

The board reserves system, with all its limitations, ensures that rich teams would not be able to spend all their cash in one go, for example dramatically boosting their competitive edge in the middle of a league season. It is really effective, but too much restrictive. Very competitive managers can still risk their money on speculative player purchases to “store” money there rather than as asked by Board. An example is the skyrocketed price of future coaches.

Effects

The financial director will grant the manager the possibility to invest saved funds into the squad more aggressively than the Board would otherwise have agreed to. Having a Financial Director on the team may be necessary for teams that save up for a few seasons to make an expensive run for the Cup or league title. However, both the ceiling of 25 million and the possibility of returning a maximum of 8 million per season, accessible only on condition that you spend money during that season, are considered too limiting by some managers.

In a nutshell

This specialist can be hired to: Raise the limit of available cash funds. Prevent some cash from flowing to Reserves. Increase the release speed of money in Reserves. As side effects: A manager will have to pay money to get money back.

In US$ or € Skill Level Max Funds Return / Week Cost/week 0 - 15 000 000 50 000 0 1 17 000 000 100 000 1 020 - 2 115 2 19 000 000 200 000 2 040 - 4 230 3 21 000 000 300 000 4 080 - 8 460 4 23 000 000 400 000 8 160 - 16 920 5 25 000 000 500 000 16 320 - 33 840

Example: Team Tycoon has accumulated 30 million US$ or € in funds. Without a Financial Director, the Board will only the allow the manager access to 15 million at a time. If the manger spends 2 millions, and the new cash balance is 13 million €, the Board will again make investment funds available to the manager, but only at the slow rate of 50 000 a week.

Now Team Tycoon hires a Level 3 Financial Director. The Board now being more confident that cash is handled responsibly, will increase the max cash limit to 21 million and the weekly release rate to 300 000. The Club can now spend an extra 300 000 per week without lowering cash reserves, or increase cash reserves up to 21 million without any further Board intervention.

History

Interest rates of credit
(by economists number)

# Accountants	% interest rate
0	0
1	0.0375
2	0.0525
3	0.065
4	0.075
5	0.08375
6	0.09125
7	0.09875
8	0.10625
9	0.1125
10	0.11875

Old Accountants, known as Economists before 12/09/2008, were removed for the game in global season 43.

Accountants

Accountants were responsible for your bank account and could get profits from assets and debts. The result of their work showed during the financial update when interest were calculated with two different formulas, depending on whether you had a negative or positive balance.

Debt Interest

If you had negative balance the previous week the formula was:

Interest for 1 accountant = 0,00666 * [ money on account in previous week ]
= [money on account in previous week] * 0,0333 * 0,2

Examples:

With -270.000 € on your bank account, you paid 3,33% = 9.000 € in interest expenses and you will generate 2.100 € in interest income. Accountant expenses will be 3.600 €, so it will not be profitable to hire more than one accountant. Here too it will round down to the nearest hundred €. If your bank account states -269.000 €, you will only get 1.700 € in interest income, because it will round down to the nearest hundred €. Accountant expenses will then be higher than interest income, and it will not be profitable to hire any accountants!

Credit Interest

For a positive balance, the interest rate had to be calculated like this:

Interest rate = 0.0375% * \sqrt { [ amount of accountants ] }
= 0.0375% * \ sqrt { [ amount of accountants ] } * [ money on account ]

Unfortunately the math package was not installed properly. Until 22/07/2007 these formulas was in use:

Interest rate = 0.0375% * SQRT ( [ amount of accountants ] )
= 100 * FLOOR(0.000375 * SQRT([amount of accountants]) * [money on account] / 100))

The maximum interest was 25 000 US$/€.