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I'll hire coaches with "Excellent" or "Good" ratings. I'll sign them to long contracts, because I figure they'll be good fits in my system. Some of these coaches have little to no experience, but some have an established track record. After one or two bad seasons, their ratings will drop significantly to "Average" or "Fair".
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In my fictional league, I have found this to change daily, on a per game basis, mostly with my minor league clubs.