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  Forum » FAQ & Tutorials » The Economics of Striker Manager Date
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@bluegene said:
Good one.
One question what do you mam by the last topic -owners profit.

I am ashamed seeing dee do all this work n we call our self the Finance guys. Well done dee again but still my vote was 'no'
25/02/2012 16:54
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@bluegene said:
Good one.
One question what do you mean by the last topic - owners profit.

Edited by @bluegene 25-02-2012 17:17


Thanks for all the pats on the backs guys It's very much appreciated

Wiveliscombe, a lot of those sweeping changes would result to huge changes to the game - Something that a fight against inflation cannot lead to. Why burn down the castle to protect the gate?

Bluegene, what I mean by that, is that the amount of money circulating in football is very often limited to the way owners will take a share out of profits generated and use them for their own personal use.

Whilst you get the odd Roman Abramovich or Sheikh Mansour, the vast majority of Football club owners take a large share of the profit and pay them out to themselves, or share holders (just like any other company).

This serves are a natural sinkhole to the money available for teams in real life. Similarly, in SM the excess money does not have a similar sinkhole. Whilst it would be ridiculous to 'pay owners' game money (simply because there aren't any 'owners' of teams), it is an example of the kind of thing any inflation busting sinkhole would seek to replicate - Something that costs money, but doesn't make money
25/02/2012 21:34
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I will put dee's word in straight terms, i love this part of topic where he is tried to beat around the bush here

'Take away a certain part of money from teams at a particular interval if the cash reserves exceed a prefixed blanket limit for each division as in real life where people use the part profit ( ex: dividend ) for their own benefit'
25/02/2012 21:44
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vijji said:
I will put dee's word in straight terms, i love this part of topic where he is tried to beat around the bush here

'Take away a certain part of money from teams at a particular interval if the cash reserves exceed a prefixed blanket limit for each division as in real life where people use the part profit ( ex: dividend ) for their own benefit'


Wrong.

You can never place a blanket limit, and this is definitely no proposal for a 'Robin Hood' type Tax.

It's about progressively providing sinkholes. No different to how a team like Man Utd or Barcelona can spend MILLIONS on expenses, smaller clubs still pay expenses too, regardless of how large or small this is.

Please don't hijack this paper to discuss 'how to make take away the advantage stronger teams have'. There will always be rich, and there will always be poor in any money dominated society. I am not trying to make socio-political arguments in the context of this game. I am solely making an economic argument.
25/02/2012 22:02
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Since a lot of effort was put into this and this would deserve some more discussion, i decided to sticky this. 28/02/2012 19:04
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@Horath said:
Since a lot of effort was put into this and this would deserve some more discussion, i decided to sticky this.


Agreed great work and effort.
I think there is many markets within the one market.What I mean is that there is a market that is affordable to under 1M that others would not even look at as they want players of a higher average and so much higher money.There is mini-markets all the way through the process depending on what your monitory situation is.

There is also a higher mark up in the lower regions but you are dealing with much lower money levels.For example : Buy a player for 500K and he might sell for 750K giving a 50% mark up.
Now if we buy a player for 50M I think it would be hard to expect 75M in a resale to give the same mark up.

The 500K person has the same value for this money as the 50M person has for his.

The areas of most difficulty is making the transition for one of these zones (mini-markets) to the next.Lets just say the price of a 25-35% avg player to a 35-45% avg player then as you move up you want 50%+ 60%+ ect.

Its the transition that makes it difficult as there is a bigger jump in price with less of a mark up on the players.


Any thoughts ?

and thanks again Dee for the hard work on this
28/02/2012 19:28
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billyo11 said:
@Horath said:
Since a lot of effort was put into this and this would deserve some more discussion, i decided to sticky this.



I think there is many markets within the one market.What I mean is that there is a market that is affordable to under 1M that others would not even look at as they want players of a higher average and so much higher money.There is mini-markets all the way through the process depending on what your monitory situation is.

There is also a higher mark up in the lower regions but you are dealing with much lower money levels.For example : Buy a player for 500K and he might sell for 750K giving a 50% mark up.
Now if we buy a player for 50M I think it would be hard to expect 75M in a resale to give the same mark up.

The 500K person has the same value for this money as the 50M person has for his.

The areas of most difficulty is making the transition for one of these zones (mini-markets) to the next.Lets just say the price of a 25-35% avg player to a 35-45% avg player then as you move up you want 50%+ 60%+ ect.

Its the transition that makes it difficult as there is a bigger jump in price with less of a mark up on the players.


Any thoughts ?

and thanks again Dee for the hard work on this


You are right in the sense that the game is in danger of becoming a two-tiered market. However, the 'mark-up' you mention is more in reference to buying and selling players for profit, as opposed to anything else.

Any manager who relies on buying and selling for profit is entering a potentially lucrative, yet highly risky business strategy.

The long term issue isn't that a 99/19 CF is worth 2 Billion - It is the fact that in 5 seasons time, that same player will be worth almost 10 Billion - And people will have the money to pay those kinds of sums, with relatively little sacrifice!
29/02/2012 19:18
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Speaking in pure economic terms - The problem we have is a 'supply-side' issue.

A supply side policy is anything which improves efficiency and productivity.

The demand in this game is relatively predictable, and constant. I.e. A division 4 team will most likely aim for 60 - 70 Average players etc.

The issue at hand, is the lack of supply. But not only in terms of players, but also in terms of the incentives for long term investments.

However, during the course of this debate, there is one factor that can be executed:

Steady release of System Bot Players. The players can be auctioned from £0, and replaced with standard players to ensure that there is no forfeiture of games. The money spent on these players, would IMMEDIATELY begin to take money out of the game.
29/02/2012 19:24
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One another reason for Inflation, is that no one wants to make a loss. I mean, if i buy a player today for 2 million, i will never sell him for less than 2. not even 1.9.. That is why, very rarely will price go down. This is very much like Real Estate purchase. When you purchase a piece of land, you dont want to sell at less than purchase value. 29/02/2012 19:26
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You are right in the sense that the game is in danger of becoming a two-tiered market. However, the 'mark-up' you mention is more in reference to buying and selling players for profit, as opposed to anything else.

I agree but I think for a new manager you have to do some buying and selling of players to build up a fund to improve the team, the stadium, and try and get some youth players for training.
As managers get more experience then this is a risky business because you are dealing with managers of similar experience and know the value of players better.As a starting off point it can improve your knowlage of the game and also your bank account but this is a short term solution and a youth policy is the way forward from there.
I think that how you use your money in this game is also the secret to success (or survival )
29/02/2012 19:29
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