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Old 11-30-2017, 09:23 AM   #1
krownroyal83
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Penalties for going over budget

Right now I have a pretty good team. I'm well over budget though. Over 30 million over budget. What are the draw backs of going over budget other than getting fired since I have can't be fired selected.
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Old 11-30-2017, 10:04 AM   #2
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If your team goes over budget, next season you will not have the ability to sign free agents or extensions for players already in your system. You will only be able to trade for players with lower salaries than you are trading away. You might not even be able to pick up inexpensive Rule 5 draftees because they would increase your payroll. It can become very restrictive regarding the future of your team.

If your payroll is above the league average payroll, you will also be paying the luxury tax.

For long term multiple season play, going over budget will lead to bad things.

Unless you are smarter than the owner who sets the budget. If you are able to make a profit while being over budget or have plenty cash reserves to cover the losses, you will probably be ok next season.

Budget is only a guess by the owner about how much he thinks you should be spending to have a profitable, competitive team.

For long term multiple season play, what really matters is Revenue minus Expenses. As long as the team makes more money than it spends, things will go well. The owner does not seem to take into consideration playoff money. If you are certain you will make the playoffs, that extra revenue may cover the amount you have gone over budget, after the season ends and the dust has settled.

But the owner will not allow a GM to go over the budget in important areas like contracts. Which is where the problem comes in. It is a somewhat artificial restriction in that the target budget is only an estimate. Which also probably happens to mirror reality, especially when it comes to a stingy owner.

Last edited by jmknpk2; 11-30-2017 at 10:21 AM.
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Old 11-30-2017, 10:39 AM   #3
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being 30m over budget is something I'd want to avoid altogether. When a big injury happens, or somebody isn't performing well, you want that wiggle room to help you get the players you might need midseason.
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Old 11-30-2017, 10:39 AM   #4
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Quote:
Originally Posted by jmknpk2 View Post
If your team goes over budget, next season you will not have the ability to sign free agents or extensions for players already in your system. You will only be able to trade for players with lower salaries than you are trading away. You might not even be able to pick up inexpensive Rule 5 draftees because they would increase your payroll. It can become very restrictive regarding the future of your team.

If your payroll is above the league average payroll, you will also be paying the luxury tax.

For long term multiple season play, going over budget will lead to bad things.

Unless you are smarter than the owner who sets the budget. If you are able to make a profit while being over budget or have plenty cash reserves to cover the losses, you will probably be ok next season.

Budget is only a guess by the owner about how much he thinks you should be spending to have a profitable, competitive team.

For long term multiple season play, what really matters is Revenue minus Expenses. As long as the team makes more money than it spends, things will go well. The owner does not seem to take into consideration playoff money. If you are certain you will make the playoffs, that extra revenue may cover the amount you have gone over budget, after the season ends and the dust has settled.

But the owner will not allow a GM to go over the budget in important areas like contracts. Which is where the problem comes in. It is a somewhat artificial restriction in that the target budget is only an estimate. Which also probably happens to mirror reality, especially when it comes to a stingy owner.
Well said. I have always wanted there to be a hard cap penalty in OOTP. If a team goes over the cap they would have to release players or something. I always envisioned that would keep contracts in order as they can quickly get out of hand in re-play type scenarios. However, I would concede that I don't understand all of the in's and out's of the financial system in the game and that what I suggest may not be that easy.
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Old 11-30-2017, 11:10 AM   #5
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if you enter the season over-budget your scouting and development gets slashed to 1/2 of baseline.

OH, am i confusing this with being over a hard salary cap? well, leaving it just in case. worth a look at least.

depending on context, that could be a really big problem... if you have no kids in system worth caring about and the last pick in draft with few compensatory picks given out, you may not care much, but that's likely one of the less likely situations.

if you 'fix' it before you are locked into those budgets, all is fine. just double check they have not already been altered automatically by being over-budget. pretty sure it's the day they get locked, though.

if you end up making a profit, i am not sure if those stay slashed or not... you do avoid the repercussions related to a net loss. the ability to sign extensions / new rules on trading etc explained above.
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Old 11-30-2017, 10:04 PM   #6
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Thanks guys for the replies I appreciate it. I'm a ootp newbie so there are a ton of questions I have about the game. I'd prefer not to be able to go over budget at all. I don't like having an advantage over the AI. Would be nice if you could implement a salary cap of some kind. I thought I saw something similar in the settings somewhere but maybe that's just wishful thinking.
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Old 11-30-2017, 10:46 PM   #7
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There is a salary cap setting. Can't remember exactly where it is at the moment. I've never used it. I'm not so sure it is as much a hard cap (which can not be exceeded) as a soft cap (which only results in penalties).
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Old 12-01-2017, 03:39 AM   #8
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More than likely it's a soft cap which i'm not interested in. And a hard cap would probably mess the game up. Too many players would just linger in free agency and not get signed due to the fact teams couldn't afford them because of cap issues. I do like the cap system or at least the option to have a cap system assuming it works in game properly. Evens out the playing field abit. I have two teams right now in my custom league where one team has a payroll of just over 200 million and another team is under 50 million. Hard to compete when you have little money to spend.
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Old 12-05-2017, 04:07 PM   #9
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Quote:
Originally Posted by Hrycaj View Post
Well said. I have always wanted there to be a hard cap penalty in OOTP. If a team goes over the cap they would have to release players or something. I always envisioned that would keep contracts in order as they can quickly get out of hand in re-play type scenarios. However, I would concede that I don't understand all of the in's and out's of the financial system in the game and that what I suggest may not be that easy.
You can impose a hard cap in the game.
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Old 12-05-2017, 04:15 PM   #10
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There is a hard cap option. I've never played with it so can't speak to what it does to a league. I would guess that it's ok for starting a fictional league but would really mess up modern MLB if you were to suddenly switch to it.
The default cap is a soft cap with a luxury tax.

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