(stole old answer)
If you spend more than you earn then that number is how much you are "overextending". This overextending amount is multiplied by the rate (50-75%) and that's how much tax you pay additionally.
Your overextension is reduced by the training exemption so homegrown players (training overall) is a way to use to your advantage. The training exemption is calculated as the differences in the current overall salary (all your players now) and the total combined salary of each player when they are purchased. This difference gets deducted from the overextension tax making it possible to overextend but still break somewhat even with a team that you trained yourself.
In terms of beer - if you drink four beers at the bar but can only pay for three then you will have to pay for half a beer extra to make it up to the bar. However if that last beer was your OWN micro-brew sold at the bar then the bartender tends to look the other way and you're all good. (Scandinavians understanding everything better in terms of alcohol right?)
Last edited by Randy Maus at 12/12/2015 9:11:47 AM