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The reputation is only based on how successful the coaches teams have been in the past - not how "good" of a coach he is. If the team does well, their reputation goes up and vice versa.
The ratings in the editor will show how effective the coach really is. You can get a clue based on the verbage on the coach. For managers you can also see their poor/below average/average/good etc abilities for player development and morale.
There are varied opinions on how cheating it is to look at the editor ratings.
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