Digging Out of a Financial Hole - Help Needed?

EephusPitch · 03-20-2014, 02:24 PM

I'm in an online league and need some suggestions on digging out of a large financial hole that I inherited from my predecessor.

Biggest obstacle is that teams in the league cannot have more than $500k on hand--otherwise, I would simply sell my best player (MVP-caliber offensive bat, pre-arbitration) to wipe out my debt and move forward.

Financials:
My team is carrying $7 million in debt into this off-season, and I have no money for free agents or extensions for the 2nd consecutive season. Team budget is less than $7 million (2nd lowest budget in the league is $11 million, highest is $25 million).

Payroll at the end of the season was $4.7 million ($2 million behind the next team, highest team is $20.9 million). I have two players in the first year of arbitration, and the rest of my roster earns league minimum. I've bottomed out my scouting budget (no international signings in this league) and my minor league coaching staff. (Also, no bonuses in this league - the only three investments are in 1. major league contracts; 2. coaching staff; and 3. scouting)

My attendance last season was under 1 million, and half of the next highest team. League's highest attendance was 3.7 million. Gate Revenue is the main revenue source in the league, and I was last at just under $7 million, $3 million less than the next team. Median gate revenue is $15 million, and high is $21 million.

Ticket price is $5. Market Size is Average, Fan Loyalty is Poor, Fan Interest is 29.

(Media revenue is $740k, high is $860k. Merchandising revenue is $109k, high is $287k.)

Roster
I have a very young team. My best offensive player is 1 season removed from an MVP (He's a 50HR/150RBI/1.100 OPS type), and matched that performance this past season but missed 6 weeks. He is 26, and entering his last season before arbitration at $80k. (League rules prevent extensions for any player pre-arbitration. Ideally, I'd like to lock him up after this season to an extension, but I need to clear my debt to do that. Otherwise, I need to trade him.)

My most popular player is my leadoff hitter. He's a high speed/high contact/low K guy. He outperforms his ratings, and in the first year of arbitration he became my highest paid player at $300k.

My #3 hitter is my 1B, 23 entering 2nd full season. He's a 300/370/520 guy with a 100-glove. I also have a 2nd-year CF with a great glove who hit 30 HRs, but low Avg/OBP.

All of my SPs threw to a 100 ERA+ or better. Only 1 is in arbitration.

Two more great MLB assets - a 22-year-old SP who began last season as the #1 prospect. I brought him up in late June. And, a 25-year-old SP who was a Top 100 prospect. I brought him up in August, and he pitched to a 1.97 ERA (226 ERA+).

I have two offensive prospects (empty average types, one with superstar speed) who are on the verge of ML. And I have 5 very strong SP prospects in A-ball.

Also, since its pertinent, we operate under feeder-league rules with HS and College. HS amateurs tend to need 2-3 years in A-ball and College amateurs tend to need 1 season or less in A-ball. Very rare to get an immediate impact player in the draft. And we operate under the old FA compensation rules.

So I've got some thoughts on how to dig out--none too appetizing--but would like to hear your thoughts as well.

sprague · 03-22-2014, 12:37 PM

could you post a screenshot of your team's financial page?
might help to see it

Tram2Whitaker · 03-24-2014, 08:11 PM

1) What is your record? If you are not winning, then it wouldn't matter what your guys' stats are; I say trade for league min. prospects.
2) What are league rules on relocation? I'm not sure if this would help in a fictional game, especially if an administrator was responsible for doling out market ratings, fan interest and loyalty. But if you're posting decent results, yet seeing meager returns, then something has to be changed.... Better yet, drop your ticket price below league average; in my solo leagues, this helps prop up attendance, even when I'm rebuilding. For example, say your league average ticket was $5, and you are only getting 1 million; drop it $4.50, and you go up to 1.2 million, that's an improvement of $400,000. (just a theory, fiddle with the numbers)
3) What is the time frame for digging out? Is this a rebuild or restructure? If you have to dig out by year's end, or next year, I'm not sure there is much you can do. If you have a 5 year, or 10 year plan, perhaps you can tweek several small things, and keep your most popular players.

03-20-2014, 02:24 PM	#1
EephusPitch Bat Boy Join Date: Mar 2014 Posts: 1	Digging Out of a Financial Hole - Help Needed? I'm in an online league and need some suggestions on digging out of a large financial hole that I inherited from my predecessor. Biggest obstacle is that teams in the league cannot have more than $500k on hand--otherwise, I would simply sell my best player (MVP-caliber offensive bat, pre-arbitration) to wipe out my debt and move forward. Financials: My team is carrying $7 million in debt into this off-season, and I have no money for free agents or extensions for the 2nd consecutive season. Team budget is less than $7 million (2nd lowest budget in the league is $11 million, highest is $25 million). Payroll at the end of the season was $4.7 million ($2 million behind the next team, highest team is $20.9 million). I have two players in the first year of arbitration, and the rest of my roster earns league minimum. I've bottomed out my scouting budget (no international signings in this league) and my minor league coaching staff. (Also, no bonuses in this league - the only three investments are in 1. major league contracts; 2. coaching staff; and 3. scouting) My attendance last season was under 1 million, and half of the next highest team. League's highest attendance was 3.7 million. Gate Revenue is the main revenue source in the league, and I was last at just under $7 million, $3 million less than the next team. Median gate revenue is $15 million, and high is $21 million. Ticket price is $5. Market Size is Average, Fan Loyalty is Poor, Fan Interest is 29. (Media revenue is $740k, high is $860k. Merchandising revenue is $109k, high is $287k.) Roster I have a very young team. My best offensive player is 1 season removed from an MVP (He's a 50HR/150RBI/1.100 OPS type), and matched that performance this past season but missed 6 weeks. He is 26, and entering his last season before arbitration at $80k. (League rules prevent extensions for any player pre-arbitration. Ideally, I'd like to lock him up after this season to an extension, but I need to clear my debt to do that. Otherwise, I need to trade him.) My most popular player is my leadoff hitter. He's a high speed/high contact/low K guy. He outperforms his ratings, and in the first year of arbitration he became my highest paid player at $300k. My #3 hitter is my 1B, 23 entering 2nd full season. He's a 300/370/520 guy with a 100-glove. I also have a 2nd-year CF with a great glove who hit 30 HRs, but low Avg/OBP. All of my SPs threw to a 100 ERA+ or better. Only 1 is in arbitration. Two more great MLB assets - a 22-year-old SP who began last season as the #1 prospect. I brought him up in late June. And, a 25-year-old SP who was a Top 100 prospect. I brought him up in August, and he pitched to a 1.97 ERA (226 ERA+). I have two offensive prospects (empty average types, one with superstar speed) who are on the verge of ML. And I have 5 very strong SP prospects in A-ball. Also, since its pertinent, we operate under feeder-league rules with HS and College. HS amateurs tend to need 2-3 years in A-ball and College amateurs tend to need 1 season or less in A-ball. Very rare to get an immediate impact player in the draft. And we operate under the old FA compensation rules. So I've got some thoughts on how to dig out--none too appetizing--but would like to hear your thoughts as well.

03-22-2014, 12:37 PM	#2
sprague All Star Starter Join Date: Aug 2011 Posts: 1,947	could you post a screenshot of your team's financial page? might help to see it

03-24-2014, 08:11 PM	#3
Tram2Whitaker All Star Reserve Join Date: Apr 2002 Posts: 619	1) What is your record? If you are not winning, then it wouldn't matter what your guys' stats are; I say trade for league min. prospects. 2) What are league rules on relocation? I'm not sure if this would help in a fictional game, especially if an administrator was responsible for doling out market ratings, fan interest and loyalty. But if you're posting decent results, yet seeing meager returns, then something has to be changed.... Better yet, drop your ticket price below league average; in my solo leagues, this helps prop up attendance, even when I'm rebuilding. For example, say your league average ticket was $5, and you are only getting 1 million; drop it $4.50, and you go up to 1.2 million, that's an improvement of $400,000. (just a theory, fiddle with the numbers) 3) What is the time frame for digging out? Is this a rebuild or restructure? If you have to dig out by year's end, or next year, I'm not sure there is much you can do. If you have a 5 year, or 10 year plan, perhaps you can tweek several small things, and keep your most popular players. __________________ 404'd!