Salary Cap Issues/Financial Talk

[funclown]

You are a genius. Thanks! I was a little worried considering Bayer and Ednams Arb $.

Dont worry Matt, Im counting on a Budget increase also. I'm making money hand or fist right now

[funclown]

Hey wont bonus's also be another loophole???

I mean if I'm at 99 million and still need to up an offer why not give a $5ml bonus for 100 AB hitters bonus?

[Matt]

I'm sill waiting on the proposal by Carlos. At least I think he was the one.

[Carlos]

Hey wont bonus's also be another loophole???

I mean if I'm at 99 million and still need to up an offer why not give a $5ml bonus for 100 AB hitters bonus?

We still need to discuss this I think.

This has come up twice in the past three(?) off-seasons with one more notable example happening this past off-season.

Those sort of deals should not be allowed. At least, that's how I feel and I know others, most, agree.

[Carlos]

I'm sill waiting on the proposal by Carlos. At least I think he was the one.

You'll be waiting a long time. :)

[Clay]

Bonuses like POY and AB stuff goes in the preseason as a player expense. Happened to me this season with Woodbury's Stout slugger.

[funclown]

We still need to discuss this I think.

This has come up twice in the past three(?) off-seasons with one more notable example happening this past off-season.

Those sort of deals should not be allowed. At least, that's how I feel and I know others, most, agree.

Are we talking about the Tardif deal from last year?

Oh, BTW- he is 1-13 this year.

[BradZ]

Are we talking about the Tardif deal from last year?

Oh, BTW- he is 1-13 this year.

Boom roasted.

[Matt]

You'll be waiting a long time. :)

I have already been waiting a long time.

I can be very serious about writing up a proposal but all it is going to say is: remove incentives altogether. I mean, that's the summary of it all. If you need a full page, I can provide it.

It will cover:

• Preventing owners from abusing the poor incentive coding in the game.
• Providing a fair and balanced free agent period that remains competitive.
• Protecting teams from poor accounting that could result in negative balances if an incentive is reached.

[Carlos]

I have already been waiting a long time.

Oh, that proposal.

I honestly didn't think anyone wanted it so I never made it.

[Carlos]

For anyone that wants a recap of that incentive discussion: http://www.simgamingnetwork.com/foru...ght=incentives

One reason why I never wrote that proposal is because there seemed to be many against the idea of eliminating incentives altogether. I can't fault that thinking. I completely understand. Honestly, my organizational rules to never hand out an incentive is purely that: an organizational rule. Denver simply does not do it.

And what fun will there be in me having an organizational rule that is a league rule? Boo to that, I guess.

Anyway, to be serious for a moment, Matt brought up the 10% rule. Others brought up the only offer what is asked for rule. I also brought up a limit rule. Recap each:

1. 10% Rule.

This would force teams to only offer up to 10% of the yearly average salary in incentives.

For example: If a team is offering a free agent $5 million over 5 years, the average salary is $1 million.

Therefore, the team is able to offer the free agent an incentive not exceeding $100,000 or 10% of the average yearly salary.

Pros
This effectively places the strength of a contract back on the salary offered and not the incentives offered. Because a team can only offer 10% of the average yearly salary, the team offering the highest average yearly salary is at an advantage to sign the free agent.

Cons
The 10% is only a measure of the dollars offered; it does not reciprocate the reality of the free agent to meet that incentive.

A team could offer 10% of the average yearly salary but the goal could be unrealistic. This could give one team an unfair advantage over another when both teams are extremely close in contract value.

For example:

Team A offers the free agent a $4.6 million/5 year contract. The average yearly salary is $920k. That team offers $92,000 in incentives if the free agent clears 700 plate appearances over the course of each season.

Team B offers the free agent a $4.5 million/5 year contract. The average yearly salary is $900k. That team offers $90,000 in incentives if the free agent clears 350 plate appearances.

Team A's offer would appear to be richer and thus the free agent would be more likely to sign. However, the free agent would have a greater chance of reaching 350 plate appearances over 700 plate appearances over the course of a season.

By signing with Team B, the free agent is nearly guaranteeing himself $990,000 over the year.

By signing with Team A, the free agent could make $992,000, but is more likely to make $920,000 - less than the contract offered by Team B.



2. Demand Rule

The demand rule enforces that teams are only able to offer a free agent an incentive-laden contract meeting the incentive demands administered by the free agent.

For example: If a free agent demands that he make $500,000 by winning the Stout Slugger then a team can not offer an incentive for winning the Stout Slugger that exceeds $500,000 or the value of the free agent's incentive demands.

Pros
Much like the 10% Rule, this effectively places the strength of a contract on the average yearly salary offered by a team. It also guarantees that all teams are equal in their incentive demands, forcing a free agent to choose his next destination based on the greater contract offered.

Cons
There may be instances where the incentive demand does not exceed the 10% Rule nor place an accurate value for such an incentive.

It eliminates a contract war between two teams when contract offers begin to climb in an effort to win the services of a free agent. Though, dollar value will remain the strongest asset in a contract, the incentives remain frozen, thus removing their effect or value during the free agent period.



3. League Limit Rule

The League Limit Rule would be a league sanctioned rule that places limits, both maximum and minimum, on the value of an incentive and the goals that must be reached.

The League would need to vote or create a Board of Owners responsible for Contract Rules on the greatest dollar amount that can be offered for each individual incentive. Goals will also be determined through this league sanctioned system.

For example: The League may determine that all plate appearance incentives cannot exceed a dollar amount of $1 million dollars nor 500 plate appearances. A team is free to offer less, but never more.

Pros
This places an additional form of competition in contract wars between two or more teams. While the dollar value of a contract will always remain the strongest asset in a contract offer, teams will be able to add an extra incentive that may or may not differ from the incentives offered by a competing team.

The benefits are that the incentives will be indirectly monitored by the League through the rules placed on incentives, thus eliminating any incentive offers that are deemed irresponsible, unrealistic or unfair.

Cons
Incentives are limited in some respects. Unlike the 10% Rule which allows an incentive offer to grow with the average yearly salary of a contract, the League Limit would enforce that incentives can only reach a certain dollar value.

Thus, if two teams are in a contract war for a free agent's services, and both have reached the incentive plateau, the contract only becomes a war of yearly average dollars. This removes the effect of offering incentives deep into the free agent period.



Bottomline
There are pros and cons for either system, but all three keep incentives in the league and also offer rules that would be easy to follow or research if forgotten.

There is very little back-end and most will be under the watchful eye of other owners. Being able to view contracts after signed is an easy step to take within the game and if someone recognizes that a team has ignored the agreed rules of the league, then steps can be taken to remove the free agent from the organization and also punish the organization.

We are a gentleman's league. There is no doubt in that. However, even gentlemen engage in activity that could be deemed cad. It may not be intentional, but where there are no rules, there are only ways to stretch the fine line between good and evil.

[Carlos]

I should add that there may be an opportunity to mix-and-match some of these or even dive in deeper.

For example: We could always have a 10% rule and then have a league limit rule on the goal (ie: number of plate appearances).

Or another example: We could have the league limit rule on incentives, but also have a scale. Maybe at $5 million dollars a year, a team can only offer $1 million in winning an award. But between $6-10 million, the incentive can climb to $2 million, and so on.

I would guess the first step is determining how we want to handle the dollar value of incentives. From there we can determine what we want to do about the actual incentives and the number that must be reached to meet the dollar value.

[Clay]

Remember when making proposals/suggestions to also include how they would be enforced.

[Carlos]

I think with the exception of having the League determine max/min, everything would be enforced by all of us.

It was the owners (or one to be specific) that identified last off-seasons contract. The same a few off-seasons ago.

I don't think we want to make this something you or any commish would have to enforce or monitor.

Just rules or guidelines to follow. We have some very perceptive owners in this league. You know this first hand just one sim ago.


Sent from my mobile device.

[Clay]

That's not true. If we put in a rule that limits the incentive deals to players that want them, it would mean someone (likely the Commish) would need to know the wants of every player in the league.