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I edit each team's prior season Merchandising Revenue at the start of the new season to $15mill. (You can't edit it for current season). The current season Merch is nearly entirely based on the amount it was for the previous season. Success / failure on the field appears to have small affects on the totals.
How much you should set it to for every team is dependent on the other financial aspects of your league. How much Broadcasting do the teams get? What is the salary cap? What are the stadium sizes and total revenue?
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Commish GUBA
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