[Bristolduke]

The sim that moves to the off season (usually 1 day after the last playoff game) sets all the financial data for the following season.

With respect to the luxury tax there are two different values involved, The Cap and the Tax. The same principle is used whether it is the luxury or the percent of revenue. I'll use the tax in this example.

So at the day of rollover, the average player expenses per team is computed (this could include international, or drafted players where you exceeded your draft budget). Then the cap is determined and then the tax is calculated and applied.

So if you are using default of 120% cap and 20% tax and your average league payroll is $150M then

The cap is $180M (120% of $150M)

Any team with a player expenses over $180M will pay a tax of 20% of the amount in excess of $180M. For example a team with a $200m player expenses will pay a tax of $40M (20% of $20M). That amount will be shown on the front office as a negative number under revenue sharing. This is done for all teams.

The pool of tax money is then shared among the low player expense teams (I think it is the low 25% of teams). This shows as a positive number in the revenue sharing line on the front office.

All of these calculations are done prior to the processing of cash maximum values. The application of cash maximum is the last step in the rollover financial processing. So if Team X made more profit than the cash max and then received some funds via revenue sharing, then all finds in excess of the cash maximum are removed. This is shown on the Cash from owner line as a negative number.