Finances

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Revision as of 16:40, 28 November 2005 by Dancing rob (talk | contribs)

Revenues and Expenses

You need money to run your club. You pay the expenses and collect the income of the week every weekend. The exact time varies by league - check the league events for when it occurs in your league. The Economy page shows your budget for this week and last week's financial status. Note that all your income and expenses during the week are stacked and drawn from your account each weekend. For example, if you buy a player from the transfer list for 5 000 € the player is accessible immediately, the "temporary costs" entry is increased by 5 000 € but you still have the money in your account, for the time being. This also goes for income from attendance, which is paid a week after the entry (payment for cup matches is delayed by half a week).

There's nothing to keep you from spending money even if your balance is zero. You have a line of credit for 500 000 € at the bank, but you're going to have to pay some heavy interest on this borrowed money. If you run up debts amounting to 500 000 € you'll be given a bankruptcy warning and, as a result, you'll have severely limited access to Hattrick. If you do not return your balance to within the 500 000 € debt limit within one week of your bankruptcy warning, you may be forced to leave the Hattrick series system! However, long before you reach this limit your interest costs will have become insurmountable, so stay clear of that limit! Also remember that economists don't credit interest over 500 000 €, so don't count on them saving you.

Besides, you won't be allowed to purchase players if this will push your debts over 200 000 €. When you're about to place a bid the program will take into consideration other bids you've placed, and what's been offered for your own players listed for transfer.

In other words, think twice before you get yourself into debt!

This is what the budget entries mean:

Income from sponsors: Keep good relations with your sponsors and it will earn you a higher income. Income from attendance: Have you played a home match last round and/or had a match mid week? For details on how attendance income is calculated, look at the information at Arena. Financial income: Only for those with an economist on the payroll. (Really you need lots of money in the bank or huge debts to profit from hiring an economist). Economists can only help up to the point of bankruptcy, after that you're on your own. Temporary income: Some things give you extra income during the week, particularly player sales, but also membership fees from new supporters (they pay 30 € a person) may come in. Costs for the squad: Each week you pay a sum of money for each player. This includes travelling costs, match kits, and the player's salary. This will cost you 500 € plus a certain amount based on his skills and age. Players who are playing out of their home country cost their clubs an extra 20%. Additional staff: Your economists cost 1 500 € per person per week. Arena costs: The running and servicing of your arena. Note that this is a sum you pay every week regardless of whether you're at home or away. Investments in your youth squad: None, small, medium or large Interest costs: Only if you've run up debts. Temporary costs: Besides the purchasing of players, changing coaches, firing specialists, moving up youth squad players etc. costs money. All the week's one-off costs are accumulated here. At the end of every season the league authorities hand out a bonus if their club has done well enough. Money is handed out to first, second, third, and fourth place. How much depends on your place and how high up you are in the league system:

End of season bonus
#1 #2 #3 #4
Top level 750 000 € 495 000 € 375 000 € 188 000 €
Level 2 550 000 € 360 000 € 270 000 € 135 000 €
Level 3 375 000 € 240 000 € 180 000 € 90 000 €
Level 4 240 000 € 150 000 € 120 000 € 60 000 €
Level 5 150 000 € 90 000 € 75 000 € 38 000 €
Level 6 90 000 € 60 000 € 45 000 € 23 000 €
Level 7 and below 60 000 € 45 000 € 30 000 € 15 000 €



There is also a 10 000 € bonus paid for having the top scorer in a series. The money is paid out after the last match of the season. If two players tie for this award, both current owners of the players will receive the award; however, if two of your own players tie, then you only receive one prize.

The budget and all matters concerning economy can be found at - yes, you guessed it! - the "Economy" caption on "Your Club" menu.

Promotion bonus: The teams also agreed that a special bonus should be given to those who manage to promote their team to a higher level. If your team is automatically promoted from Level 6 or above, you get a higher bonus than teams that reach the higher division after playing a qualifying game. In leagues Level 7 and below, both the first and second team of each series are automatically promoted, and there are no qualifying matches. So, in those divisions, the winner gets the higher bonus, while the runner-up gets a little less. If your team loses a qualifying game and stays in the lower division, no bonus at all is paid out. All promoted teams will also get a 10% supporter bonus (similarly, relegated teams will lose 10% of their supporters).


Promotion bonus
Auto-Promoted Promoted after qualifier
Top level 525 000 € ---
Level 2 380 000 € 120 000 €
Level 3 260 000 € 80 000 €
Level 4 170 000 € 50 000 €
Level 5 100 000 € 30 000 €
Level 6 60 000 € 20 000 €
Level 7 and below 40 000 € 10 000 €


Here is an example of how the bonus system may look:

Club A wins its Division IV and is promoted without qualification to Division III. They will get 240 000 € in prize money for winning its Division IV and 170 000 € in bonus money for being promoted without qualification. Total: 410 000 €.

If you want to calculate € into your own native currency you can check the Currencies page.

Economists

Economists are responsible for your bank account and can get you profits from assets and debts. The result of their work shows with the financial update in your country. You have to calculate the interest with two different formulas, depending on whether you have a negative or positive balance.


1. Credit Interest (positive balance)

For a positive balance, the interest rate is calculated like this:

interest rate = 0.3% * SQRT([amount of economists])

hence

interest = 0.003 * SQRT([amount of economists]) * [money on account]

It is important to point out, that interest is always rounded (down) to the next full 100 value, so the above formula is not 100% correct.

The maximum interest is 100.000 €, this is why you start needing less economists when your account reaches 10.944.444 €

2. Debit Interest (negative balance)

The interest profit for a negative balance is 20% of the interest paid the week before. If you had -150.000 on your bank account the week before, you paid 5% = 7500 € interest and the economist can generate 1500 € profit from this:

interest = [money on account in previous week] * 0,05 * 0,2

or

interest = [money on account in previous week] * 0,01

2 economists can save 30% of the paid interest in the previous week:

interest = [money on account in previous week] * 0,05 * 0,3

or

interest = [money on account in previous week] * 0,015

So remember to fire the economist/s after the next update, as they will get you a profit, even if you made it out of the negative balance with this next update.


3. Interest Table

The table below shows how many economists you should hire to optimize profit. But keep in mind, that you have to pay them a compensation when you fire them. If you hire an economist with a balance of e.g. 550.000 €, it will take a very long time until you've earned the 1500 € compensation:

0.3% * SQRT(1) * 550000 = 1650 .

Hence, you make 150 € profit each week after costs for the economist, so in 10 weeks you have earned the compensation, in 11 weeks you make the first profit. In other words, economists are good if you save money longer term. Economists can be a waste of money if you maintain your balance only for a short time.


economists needed Minimum balance Maximum balance Note
2 --- -350.000 €
1 -350.000 € -200.000 €
0 -200.000 € 500.000 €
1 500.000 € 1.300.000 €
2 1.300.000 € 1.550.000 €
3 1.550.000 € 2.000.000 €
4 2.000.000 € 2.150.000 €
5 2.150.000 € 2.500.000 €
8 2.500.000 € 3.100.000 €
10 3.100.000 € 10.950.000 €
9 10.950.000 € 11.590.000 € 100.000 interest reached, so less economists are needed
8 11.590.000 € 12.475.000 €
7 12.475.000 € 13.500.000 €
6 13.500.000 € 14.710.000 €
5 14.710.000 € 16.425.000 €
4 16.425.000 € 18.955.000 €
3 18.955.000 € 23.465.000 €
2 23.465.000 € 32.840.000 €
1 32.840.000 € --- €