Everyone needs to keep some things in mind with the new league as far as Financials are concerned. SOme of us know alot about financial issues within the game from the original BSL, others are completely new.
Cory and I have decided that the salary cap is going to be impossible to enforce. So teams do not have an individual salary caps. That being said there are a ton of things to consider financially:
A) Running in the Red: Based on budget you may need to run your team in the red during a season, if you finish the season in the red you make up that money with your cash reserves, which we do have a limit on of 20 Million Dollars.
B) Owner sets the budget: You are the team manger not the owner. The Owner sets your budget. You NEED to keep this in mind when dealing with your teams future. If you run the year in the red, eat up a bunch of your cash reserves, don't field a strong team, have attendance drop, etc. Your budget can and more than likely will get slashed for the next season, forcing you to scramble in the offseason. This is not advised.
C) Releasing players: immediately pays out the remaining contract years at full value of players you are releasing. This can wreak havoc on your financials. Make sure you know how much it is going to cost you before releasing a player out right. (Career ending injuries and retirement are the only players released without cost) ( also keep an eye on your players contract page, some players have awards built in to their contract, so say, Roger Clemens wins the cy young in 2007, The cubs will owe him 650K for that out of cash reserves)
D) Contract extensions: We ran into this a lot in the first BSL. Locking up dudes is great, but the cost can be insane. The software has a lot of tools we didn't have before (estimated arbitration wants!) so you should now have some idea of what a player(eligible for arb. at least) are wanting to get paid. 20 Million dollar a year contracts are rough, Obviously there are a lot of large contracts out there already but the computer generates those based on stats so those were expected. Some dudes are worth that kinda dough, but No where near the number of huge contracts we had in the original BSL.
E) LUXURY TAX: This is gonna be a big one. I am going to use my team as an example first. If the season was over right now we have a league AVG payroll of $79,055,300.00 The soft cap for luxury tax is about 95 Million dollars. The cubs currently have a payroll of 118 Million dollars. So the Cubs Luxury tax at the end of the year would be about 4.5 Million dollars out of my cash into the revenue sharing pool. Last year (fake 06) The Cubs ended the year 21 Million in the hole. With my current budget I am projecting a positive flow of Just under 2 Million Added to my existing cash on hand OF just under 14 Million, less my luxury tax of 4.5 million I am still looking to lose some money overall going in to 08
F) Minor leaguers: Cory has already stated it a few times, but I want to stress the importance of utilizing your minor league players to their fullest Cheapest potential by making their auto renew 3 year pre arb. salaries work for you. Cory wrote it out clear as a bell so i'll just repost what he has previously said:
-Nick
Cory and I have decided that the salary cap is going to be impossible to enforce. So teams do not have an individual salary caps. That being said there are a ton of things to consider financially:
A) Running in the Red: Based on budget you may need to run your team in the red during a season, if you finish the season in the red you make up that money with your cash reserves, which we do have a limit on of 20 Million Dollars.
B) Owner sets the budget: You are the team manger not the owner. The Owner sets your budget. You NEED to keep this in mind when dealing with your teams future. If you run the year in the red, eat up a bunch of your cash reserves, don't field a strong team, have attendance drop, etc. Your budget can and more than likely will get slashed for the next season, forcing you to scramble in the offseason. This is not advised.
C) Releasing players: immediately pays out the remaining contract years at full value of players you are releasing. This can wreak havoc on your financials. Make sure you know how much it is going to cost you before releasing a player out right. (Career ending injuries and retirement are the only players released without cost) ( also keep an eye on your players contract page, some players have awards built in to their contract, so say, Roger Clemens wins the cy young in 2007, The cubs will owe him 650K for that out of cash reserves)
D) Contract extensions: We ran into this a lot in the first BSL. Locking up dudes is great, but the cost can be insane. The software has a lot of tools we didn't have before (estimated arbitration wants!) so you should now have some idea of what a player(eligible for arb. at least) are wanting to get paid. 20 Million dollar a year contracts are rough, Obviously there are a lot of large contracts out there already but the computer generates those based on stats so those were expected. Some dudes are worth that kinda dough, but No where near the number of huge contracts we had in the original BSL.
E) LUXURY TAX: This is gonna be a big one. I am going to use my team as an example first. If the season was over right now we have a league AVG payroll of $79,055,300.00 The soft cap for luxury tax is about 95 Million dollars. The cubs currently have a payroll of 118 Million dollars. So the Cubs Luxury tax at the end of the year would be about 4.5 Million dollars out of my cash into the revenue sharing pool. Last year (fake 06) The Cubs ended the year 21 Million in the hole. With my current budget I am projecting a positive flow of Just under 2 Million Added to my existing cash on hand OF just under 14 Million, less my luxury tax of 4.5 million I am still looking to lose some money overall going in to 08
F) Minor leaguers: Cory has already stated it a few times, but I want to stress the importance of utilizing your minor league players to their fullest Cheapest potential by making their auto renew 3 year pre arb. salaries work for you. Cory wrote it out clear as a bell so i'll just repost what he has previously said:
This is my start, I may have more to addcjay101 said:
-Nick
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