Salary Cap Issues/Financial Talk

[Carlos]

Ok so is the plan to let things go as they are and just monitor the opening day payroll to be at or below $100 MM?

But, couldn't a team conceivably just wait till one sim after Opening Day and then use that loophole to sign whatever star player is waiting in free agency (there are always a few) and go over the cap?

[funclown]

Ok so is the plan to let things go as they are and just monitor the opening day payroll to be at or below $100 MM?

But, couldn't a team conceivably just wait till one sim after Opening Day and then use that loophole to sign whatever star player is waiting in free agency (there are always a few) and go over the cap?

I think this is going to be discussed again during the offseason. For now, ideas are happening.

[umd]

BTW- I am for the cap, but you do realize Maine is NOT a big market team. 51.4 ml media contract from what I see. But since he's won so many championships he has an awesome fan base and owner is giving him alot more resources.

I agree, and that is a tribute to him. I've been knocking the bigger market winners mostly tongue in cheek out of jealousy. It does take skill to run a winner, but it's also easier because of the budget.

I don't feel like toiling away for 10 years with a budget that is 2/3 rds of the top teams. I am in 2 other OOTP leagues and I've seen both sides. One league I'm in the top 5 financially and it makes a huge difference what I can do. The flexibility (and fun factor) is unreal.

The other league I'm stuck with a budget in the bottom 3rd for the last 4 seasons. It's been fun building my team, but I've reached a point now where I am constantly trading away my developed players and still can't sign any of the top FA's because my budget is tiny.

Rebuilding can be fun, but rebuilding forever is not. Rebuilding (smallest market teams) should be able to compete with the largest budgeted teams without constantly having to sell off all their talent. Not everyone enjoys the constant Florida Marlins-esque experience. Budgets also go in to everything else besides payroll - coaching hires, scout hires etc etc. It's a disadvantage that can be draining. I just don't want to see what is now happening in my other league happen to my Hartford team once it is rebuilt.

[Andrew]

I think this is going to be discussed again during the offseason. For now, ideas are happening.

Correct. I think if we are allowing the signing for Virginia (which I think we should), we need to allow them for everyone else until the end of the season. At that point we will have the latest budget information and can make a decision on what the best course of action is. Just my opinion on how we should proceed.

[Andrew]

Ok so is the plan to let things go as they are and just monitor the opening day payroll to be at or below $100 MM?

But, couldn't a team conceivably just wait till one sim after Opening Day and then use that loophole to sign whatever star player is waiting in free agency (there are always a few) and go over the cap?

The loophole only works for future years, not current years.

[BradZ]

Ok so is the plan to let things go as they are and just monitor the opening day payroll to be at or below $100 MM?

But, couldn't a team conceivably just wait till one sim after Opening Day and then use that loophole to sign whatever star player is waiting in free agency (there are always a few) and go over the cap?

I don't think the loophole works on anything but extensions. It won't work to go over the cap in the current year.

[funclown]

I agree, and that is a tribute to him.

I don't feel like toiling away for 10 years with a budget that is 2/3 rds of the top teams. I am in 2 other OOTP leagues and I've seen both sides. One league I'm in the top 5 financially and it makes a huge difference what I can do. The flexibility (and fun factor) is unreal.

The other league I'm stuck with a budget in the bottom 3rd for the last 4 seasons. It's been fun building my team, but I've reached a point now where I am constantly trading away my developed players and still can't sign any of the top FA's because my budget is tiny.

Rebuilding can be fun, but rebuilding forever is not. Rebuilding (smallest market teams) should be able to compete with the largest budgeted teams without constantly having to sell off all their talent. Not everyone enjoys the constant Florida Marlins-esque experience. Budgets also go in to everything else besides payroll - coaching hires, scout hires etc etc. It's a disadvantage that can be draining. I just don't want to see what is now happening in my other league happen to my Hartford team once it is rebuilt.

Why I'm pretty sure the salary cap will hold. I think last years adjustment to the team markets (narrowing the gap) is really going to start helping. More teams seem profitable.

FA Offseason will be interesting. Think in the past was easy for the big market teams to offer up 5-6 year/ 20mil+ contracts. Wont be so easy now.

In the end its ok to have a Yankee team or 2. Just need to avoid the extreme low end (aka KC, Pitt) Florida at least wins every so often.

[Jim]

Since the topic is "financial talk"....quick question...is the cash maximum to carry over to the next season still $20.0?

[BradZ]

Since the topic is "financial talk"....quick question...is the cash maximum to carry over to the next season still $20.0?

$10mil

http://www.simgamingnetwork.com/forums/showthread.php?t=8421&page=14

What I proposed to Clay is:

- market sizes from 6-8 using the chart I posted
- "soft cap" at 100m. Soft meaning if teams go over due to call-ups or arbitration, you don't need to start cutting players. I also think we should allow teams who are over the cap to make trades as long as it reduces their cap # for the current year (or next year if the trade occurs during the off-season). I think the game would disallow these but we need to give people an avenue to get under the cap. In some cases it will require a combination of moves to do so. A soft cap also means no extra work for you in terms of cutting players, etc.
- reduce cash max to 10m
- remove all out of game bonuses except writing articles
- create a poll on whether or not to turn dynamic owner personality on. I like the idea of it but don't have a great understanding of how it plays into things.

Just like in life, you can't take it with you.

[Delandis]

Along those same lines can stadium modifications be completed before the turnover of the next season?

[Matt]

All I know is with a payroll of $61.1 million I have $0 for extensions and showing a negative projected balance now, so I hope some of the money comes our way soon. I'm a little worried for next season. I see I have $17 million in the cash reserve so I guess that is good news.

I just wish I understood the financials better.

[BradZ]

All I know is with a payroll of $61.1 million I have $0 for extensions and showing a negative projected balance now, so I hope some of the money comes our way soon. I'm a little worried for next season. I see I have $17 million in the cash reserve so I guess that is good news.

I just wish I understood the financials better.

Your projected negative balance is based on your budget number of $70,020,000. You've already surpassed that with your revenue for the year ($73,001,665) so you should probably end up with extra money at the end of the year (quite a bit actually, maybe too much, ie >$10mil). The good news is, revenue is up in Batavia. They like you, they really do like you!

[BradZ]

The majority of your increase is due to your increased Media contract. I'm certain you'll see a nice bump in your budget for next season based on this year's revenue. This offseason will be interesting for the traditional Have Nots as we get a truer judge of budget ranges for everyone.

[BradZ]

To continue on with an examination of Batavia's finances:

Last season your Non Media revenue was $38,446,888. This season your attendance is up 5.1%. If you assume your gate revenue and merchandise revenue goes up in lock step (it's actually not $ for $, but it'll be close enough) you can expect your Non Media revenue to come in around $40.35mil or so. Add in your new TV/Radio deal and your looking at a healthy upgrade to your bottom line:

1990
Media: 24.75
NonMedia : 38.45
Total: 63.2

1991

Media: 45.00
NonMedia : 40.35
Total: 85.35

Difference: 22.15

Your budget should increase. There's hope in Batavia!

[Matt]

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