From the forum:
"If you go into debt, you will be charged a 5% penalty each week until you are positive again at the time of a economic update. If your account is below -$500,000 at the time of a weekly economic update, you are given two weeks to bring your account back above -$500,000. Failure to reach that mark will result in all of your players being put on the transfer list automatically with a starting price of $0. If, after your players are sold, you are still not above -$500,000, you will be fired as the manager at the next economic update. Debt and bankruptcy are the first items calculated in the economic update each week. "Available cash after bids" does not count as money for the purposes of computing bankruptcy or the 5% interest penalty on a negative balance. Players must sell prior to the weekly economic update for these credits to pull you out of bankruptcy."
--> It looks like you can be in the red for a few weeks before anything too drastic happens; am I reading this right?
"Overextension tax is applied to all teams that spend much more than they earn, on a weekly basis. The training exemption is the difference between the current overall salaries and the combined overall salaries of all players when they were acquired. Overextension Tax is not applied on the first and last economy update after the start of the season for all teams and for the first 4 weeks for new teams. "
--> Does anyone know what the overextension tax rate is, or have more information about this training exemption? Maybe there is another thread for this or something, or someone could explain by using an example?