General Help/FAQ: Play the Market

February 13th, 2008 by SM Dev (ste)

Some members of the Soccer Manager community like to take on the challenge of managing a lower league side in the English setups, but others are put off by the  mammoth challenge.

Certain managers are put off from this challenge due to the clubs limited transfer budget, low rated players, small stadium capacity etc, and if they do manage to move up through the divisions then they find it hard to compete against the so called ‘big boys’.

The question is why do people find it hard to compete against the so called ‘big boys’? The answer is simple really, and there are three main reasons. First, gulf in finances. Second, gulf in class between clubs when a setup is created. Finally, gulf in stadium sizes. Like in real life this can lead to a situation when the rich get richer and the poor get poorer.

However, if you do decide to look at Soccer Manager in a new light, ignore what I have said above, and decide to take on the challenge of managing a lower league side in the English setups, then there is a way to take Accrington Stanley, Carlisle United up the league pyramid and to league glory.

The best way to view managing a lower league side, is by viewing your club through the eyes of a stock broker, and play the market.

First you need to understand what a stock broker is: A stock broker is a qualified and regulated professional who buys and sells (trades) shares (in other words, stocks), and other securities through market makers on behalf of investors, such as chartered accountants. 

The above is a simple definition from Wikipedia, but it is a useful one, and it is one which a manager of a lower league club should use.

Instead of using the words shares, stocks or assets, replace them with players, your players, the ones who you are now managing after taking control of the mighty Chester City or similar. Don’t view them simply as players, but as assets to your club!

Once you have taken control of your lower league side look at your clubs assets first and foremost. Which of your players currently in your squad are likely to rise/drop in rating? This is were you need to act as a stock broker.

You do not want to have assets in your lower league side if they are going to drop in rating, and you only want to try and keep assets who are likely to rise. See the similarities with a stock broker?

If you keep assets in your squad who are only going to drop in rating, this will not help your challenge of moving up through the divisions with Halifax Town. Research the lower league side which you have just taken control of, and get to know your assets. If you think one of your assets is going to drop in rating, then place him on the transfer list. Likewise if you think one of your assets is going to rise in rating then keep hold of him.

This is when you keep your stock broker hat on, and view player ratings in the same view as you would view the stock exchange. First you will need to understand what a stock exchange is: A stock exchange, share market or bourse is a corporation or mutual organization which provides facilities for stock brokers and traders, to trade company stocks and other securities.

The above is a simple definition from Wikipedia, but it is a useful one, and it is one which a manager of a lower league club should use.

So now you are acting as a stock broker/manager, viewing your players as assets, and viewing player ratings in a similar fashion as you would do the stock exchange (in that a players rating can rise/fall).

As a manager of a lower league club you will also have a limited budget, and you will need to be careful in what you do with your funds. Try to view your limited funds this way - if you went on holiday to Florida for two weeks would you spend all of your holiday money in the first few days, and have nothing left for the duration of your holiday?

The answer to the above question is no (unless you do things differently to what I do when i’m on holiday and I have been missing something all my life), and the reason why you would not spend it all at once is because you budget.

When you are on holiday you budget your holiday money, so likewise you also need to budget your transfer funds for your lower league club. I do not want you to sit on your transfer funds and not delve into the transfer market, but be a bit more cautious in your approach to building your squad.

To do this you will still need to keep your stock broker hat on, and keep viewing the player ratings like you do with the stock exchange. As I explained earlier: One of the first things you do once you have taken control of your lower league side, is to look at your clubs assets first and foremost. Which of your players currently in your squad are likely to rise/drop in rating? 

I also explained that you need to put your assets who are likely to drop on the transfer list, and this will help your transfer budget and give you more funds to climb the league pyramid.

Right - done the above? Good. Now it is down to playing the market!

It is no good going out and spending all of your transfer funds on a few high rated players or a few veteran (because they are cheap), and there are a few reasons for this. First, with high rated players comes a high wage. Second, with veteran players comes a high wage, and also the possibility of retirement or drop in rating.

As I explained earlier you need to budget your finances, so take into account what I have just said above. The best way for a long term successful lower league club is to plan for the future and play the market. Try not to look for short term success by buying a few high rated players or veterans, as this could have severe implications on your finances in the future (after all you are not Real Madrid)!

So with your lower league club you can not buy high rated players, veterans, and need to transfer list your assets who are going to drop - so who can I acutally buy?

If you are looking to play the market, want to take your Barnet to league glory and play the Manchester United’s, Chelsea’s etc, then you need to be patient (after all you can not get rich on the stock exchange overnight).

With limited funds at your disposal you need to play the market (my famous words in this article). There are two ways in which you can do this:

•  First, look at low rated players/assets you consider ‘underrated’, can purchase for peanuts (well acutally stirling), and you know they are likely to rise in rating. 
• Second, look at low rated players/assets you consider ‘underrated’ (no I am not copying and pasting from above), you know they are likely to rise in rating, but also (and this is key) are potential gems (who people believe are going to be the next Lionel Messi, Ronaldo etc).

With the first method of playing the market, you are looking at players/assets short term, and as soon as they rise in rating you should be looking to sell them. e.g. So you have just purchased Mr Joe Bloggs for £250,000 playing for Real Madrid Castilla, and now your asset has just had a rating increase and is valued at £1,450,000 - place on transfer list and make a nice proft (after you have taken his purchase prices and wages into consideration).

Do not keep hold of these players/assets unless you think that they are a gem, and will keep on rising in value (like with shares on the stock exchange). Most of the ones you purchase will be Mr Joe Average, not likely to increase in rating much more, and perfect to help fund your crusade up through the league pyramid!

This brings me on nicely to the second method. You have virtually done the same as the first method, but this time you have a potential gem on your hands who people believe is going to be the next Lionel Messi. Your player/asset is more than likely to keep increasing in rating, and you will now be in a catch two situation.

I will explain what I mean by this. In the first method you keep buying Mr Joe Average, and your sole intention is to sell your player/asset to make money for your club. However, with the second method, you have a potential gem on your hands!

So you can either sell your player/asset and make a mammoth profit as he will be hot cakes (pardon the pun), part exchange him to help strengthen your squad, or keep him and have a future star on your hands (in turn with a cheap wage). You can not do wrong in whatever you chose as you will either quadruple your transfer funds, strengthen your squad via part exchange, or have a future star to build your team around.

By taking over a lower league club and following the above, you are planning for the long term, and not the short term. This might mean you spend an extra season in the lower regions of the league pyramid, but you will be in a position long term to climb the league pyramid and challenge the so called ‘big boys’.

Could you imagine if one of your friends decided to take on a lower league club at the same time as you, and you follow the above advice and he doesn’t?

First, he might get promoted due to buying veterans, high rated players etc, but he will soon realise that they are eating up the little funds he has left due to their high wages. Second, he will be looking to sell those players to raise funds whilst he spirals into debt, or he will start panicking as his veterans (which gained him promotion) start to retire and he has no money to replace them!

However, you will be in a strong financial position (and probably smiling to yourself behind your monitor whilst your friend goes into meltdown), and ready to start building your squad to climb the league pyramid.

Yes, everyone wants instant success, but as a manager of a lower league club, instant success could come at a price. However, if you follow the above advice (which may or may not be useful), you can plan for the long term and soon have Morecambe challenging Manchester United for the Division 1 title (whilst being in a strong financial position and not worrying about spiraling debt).

Posted in: General Help / FAQ

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