| Forum » General » Wise investment choices | Date | |
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I'm playing SM for 2 seasons, now, and the more I play, the more I think I could do so much better if I had the time (and if I felt like doing it) to propperly evaluate my choices. For instance, I upgraded my stadium with VIP seats. THAT'S BLOODY EXPENSIVE! 18 000 0000 €. I asked myself, What can I do with 18 000 000 € ? And today I looked at the figures : Before my update, I was earning 4.4 m / week with ticket sales. I am now earning 5.9 m. I gain 1.5 m more each week. That’s exactly a 12 weeks, or one season payback time without discounting and without inflation taken into account. Let’s say I used this money to buy a young player, aged 15 and average in 50+. It will cost me between 15 and 25 mil. Let’s say 20. Thats roughly the same amount of money. I train him whole season, and it becomes a freshly promoted player with an average of 60. I will sell him at around 40 millions. That’s the double amount of cash made in the same time (and i’m being conservative in my assumptions). With my stadium, I would have to wait until the end of the next season to get the same result. I often read that investing in stadium was the right choice, and it's what I did... Note that I don’t take into account stadium maintenance, nor player’s salary, but I think it is in favour of player’s buying anyway. Does this kind of work has been made comprehensively ? An economic evaluation of choices being made in SM ? For instance, what is the payback time of paying a licence to have your coach at 93% instead of 91% ? And what about schools ? And what if the answer was always « invest in players and trade them » ? |
11/09/2012 11:37 |
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Username
612 msgs.
MVP of the game
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I think the suggestions are slightly vague when more experienced managers are asked about investments. There are a range of options to choose from. Firstly, the best move is always to upgrade your senior team, once you are happy there, the second move is to have a look at some junior investments. I say seniors first because this moves you up the ranks in terms of divisions which in turn results in more income from the stadium, second I mention juniors cause it takes about 2-3 seasons to get even high progression juniors to a level that makes a good profit. Both these things take time, so it's best to start there. Once these are in place, I'd say go for the stadium as you will not be spending any more or too much on improving the senior team or the junior ranks. After that schools to me are an option but I don't really like the investment there. I haven't been overly joyed with their return. The best move so far from my little experience is to search juniors with GBs and then train them instead. Schools are like the lottery, seems that way to me not only in terms of progression but position as well. I will say there is a lot of truth to your statement, investment in players and trading is a brilliant way to make cash. However, without moving up the ranks in the divisions your "safe" return on investment is not secured. So, from my side it's 1) senior investment 2) junior investment 3) stadium 4) schools in that order, but the best return on investment is definitely by far GB search for great juniors and train. Long term but well worth the profit margins. Other thoughts are welcomed. Cheers, Plenty Edited by Sir A. PlentyGoals 11-09-2012 12:15 |
11/09/2012 12:13 |
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I kind of agree with Plenty but disagree too as the best for my point of view is not really to go 1) 2) 3) 4 ) for instance, the schools, when you are in the lowest division, put half year budget in a excellent netherland school will be of course very stupid but it s why you find lowest school, which are no use for higher division take any low school 20%, initial cost = nothing, so you can only have a return on investment by there, i am not talking about training any youth coming out of there, you ll find better going away for few k on the market. no, i am talking about initial average of the youth coming out of it, mostly 30+, sometimes 40+, when you start with a 30average team, it is a fast way to make you a good senior team by early promoted them, or just by selling them. same, if you want goal of having a school is training the youth coming out from it, a excellent swiss or uruguay is affordable for most of the manager, giving you great return on investment too of course easier to make GB reasearch but let s suppose that not everybody want to spend there own money into the game same for stadium, you have no use of a perfect stadium (42,42,36,36? isnt?) before being in div3 at least, but you should always improve your stadium to get the best possible imcomes for the div you are in, no less, no more, or it will be maintenance cost paying for nothing. so what im saying, is too focus on both 4 points from Plenty at the same time, not trying to grow fast by giving up on one of those, or you will clearly regret it later |
11/09/2012 13:25 |
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Interesting take on schools Fahorax. I have seen that comment a few times. When I was in the lower divisions * said in a nostalgic voice LOL I didn't think that way. It's interesting and surely not a bad way to grab some high average players who aren't really going anywhere but can help with promotion. Then you build the youth squad by finding higher progression juniors and train them up for first team action? I've been very conservative in the way that I've gone about things in SM, I think that's my nature but there are many different ways to get to the top. I will agree that stadium investment is good to a certain point. Last season I had 12K VIP that cost me more than what they were generating. So yes, investment in stadium should go along as you improve in the game. The reason I have advised an order is just the way I have gone about it. I will say it isn't a straight line but rather a cycle which is what I believe you have pointed out. GBs make this game much easier, more so in terms of time spent in my case. otherwise I would have had a whole lot of time dedicated to research instead. Also I think the social aspect of this game is underestimated, meeting people and building a relationship does help in the long run as well. You have more room for bargaining and a bigger "pool" of players with likely known prog or forecasts or known positive training results. So get out there and meet some people  |
11/09/2012 14:13 |
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Fiscal
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I don't fully disagree with you as you can make some good money off of flipping players, but the stadium is one of your most important assets. The biggest thing about the stadium is that you get the money from the VIP section forever. So if you've got your VIP section forever you'll make constant profits. You might not make constant profits from flipping players, plus once your player is gone you have the money, but now you need another player to replace him. I've spent about 83 million this season on my stadium and I've made about 150 million from my stadium. Had I not made those renovations, I would have made about 117 million (assuming my start of season profits stayed true) which would have been all profit. (I was making that much because I had already invested about 50-60 million in my stadium) So for this season my profits have been 67. They could have been 117 had I not upgraded my stadium, but lets look at next season: If I don't touch my stadium next season, I'll make about 187 million. If I didn't touch my stadium, again 117. So now I'm looking at 254 million in total profits vs 234. It continues on that way every season. I'd certainly be smart with my stadium upgrades if I were you, but there is some good money in the stadium, it just comes sort of slow. You probably don't need more VIP sections for a little while, but you should keep upgrading continuously as it does pay off in the long run. |
11/09/2012 14:28 |
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The reason why people say stadium is the best investment is because you need it. Fahorax is right when he says that you only need a stadium as good as your div, however, if you have a run of promotions from div 7 say in a year you will hit div 3 very quickly. Unless you're spending GB to hurry your stadium, building a stadium adequate for div 3 takes a long time. Ideally you want to be building 2 new sections every 2 weeks. You won't always be building Pro and VIP seating so most times your investment will be relatively inexpensive, and will probably only peak twice a season. If you've been building right, the cost of upgrades will become cheaper relative to the amount if income you earn and do you will find peak upgrades less daunting each time. Make no mistake, you NEED a good stadium in higher divs. I earn about 15 mil a game from my stadium, conversely, my weekly expenses are around the 28 mil mark. That means if I don't play three games in a week I make about 5 mil roughly - not a lot in the scheme of things. The stadium is your foundation. My schools cost me 9 mil a week, something I simply couldn't afford without it, not to mention the outrageous amounts of cash I pay my players. You don't invest in your stadium expecting a big return in the long run, you invest so you can maintain your team as it grows with you. Buying high FC juniors is the best way to make money long term, and training a couple of extra high FC seniors won't hurt either. Oh and as for schools, my 9 mil a week investment this season has cost me about 50-60 mil so far in in expenses. I built them a couple of weeks in at a cost of about 600mil all up. From that I've made just over 400 mil so far. I expect they will have paid for themselves this time next season, at which point everything after that will be profit. Don't spend much on schools until you have sorted out your squad and you need extra income. In short, stadium is not an investment, it's a necessity. High FC juniors next, then high FC seniors. Lastly, schools. Combine them all together and you have a well oiled money making machine. This is all without spending GB of course. If you want to spend money from your wallet then a constant supply of search+ from a 99% scout will make you more money then you'll ever need  |
11/09/2012 14:37 |
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Good thread btw, keep it going guys  |
11/09/2012 14:41 |
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Well put @Practicesquad I also forgot to add that while a 1 season player flip isn't a bad thing, if you hold onto that guy you mentioned for longer, he'll quickly triple and quadruple in value. If you keep training him and manage to get him up to 75 average after 3 seasons, you can pick up 200+ million for him. (Depending on his position of course.) |
11/09/2012 14:58 |
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Very interesting guys, keep on going! I'm not saying do not invest in stadium. I fully recognize that stadium is a constant cash machine, and you need it to run your squad. But it's like the real economy. Invest a part of your money in good ol' treasure bonds (even if nowadays...) and only a fraction in stock market. There's something (and that's regarding illex's answer) to take into account, and that's inflation & discounting. Discounting rate is basically answering this question : You have 1€, how much do you want in one year to give to me that € now? Basically it's at least the inflation rate, plus a risk "tax", plus the fact that you want your money now to PLAY with it. And that's the point! We're playing! You have to take into account that it is a lot more fun to buy a nice CF to humiliate your friend than to wait 1 REAL year to get your money back. Where am I gonna be in one year ? Will I still play? And what the f..ck with the Maya thing? We're all gonna be dead anyway. I can wait IRL a decent payback time for my flat for instance, I'm not sure I can do the same in a game. That's why my only long term investment is 2 schools I brought when I was new to this game, and few youth players that I train since then. |
11/09/2012 15:35 |
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What may not be obvious in the lower divisions is that the stadium is guaranteed income and with a good one, you can make yor weekly expenses in just over 1 game. I clear $41 million in pure profit when I have a 3-home game week. That's true even if I were to drop dead tomorrow. My squad would still reap the cash, and that's with weekly expenses of 38 million. In lower divisions, before you can afford your first set of pro seats, the fastest way to make money is a combination of using your scout and day trading. Find players on auction who are slightly under-valued due to morale or being sold off-peak, and sell for profit. There's more but I must go now |
11/09/2012 15:55 |
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