Financials not adding up

[Baconi]

I made a separate post about this in the general discussions, but basically I noticed that I couldn't find any way to make the financial numbers work in my save for "budget space", "total money available", or "money for free agents". I don't believe it's a bug with the sign of the starting balance like one user mentioned, because I checked on other teams, and their finances could not be explained in the same way. Here is the post in question: https://forums.ootpdevelopments.com/...d.php?t=348818

[Lukas Berger]

We'll have a hotfix for the latest patch very soon to fix up some of this.

[Sweed]

nm.

[Lukas Berger]

The new public beta patch has some fixes for this. Please test this out and let us know if things look better!

https://forums.ootpdevelopments.com/...d.php?t=348853

[snepp]

I'm going to drop this here so that it gets eyes on before the beta goes official if possible, a small team budgeting error.

https://forums.ootpdevelopments.com/...90#post5030990

[Poonox24]

Originally Posted by Lukas Berger

The new public beta patch has some fixes for this. Please test this out and let us know if things look better!

https://forums.ootpdevelopments.com/...d.php?t=348853

So I downloaded the beta. My team had $32 MIL in budget space. The game had already accounted for that.

After the next SIM, I had NEGATIVE $3 Million. Nothing has changed. What is going on?

Any thoughts??

[Poonox24]

Originally Posted by Lukas Berger

The new public beta patch has some fixes for this. Please test this out and let us know if things look better!

https://forums.ootpdevelopments.com/...d.php?t=348853

Looks like a new setting was added called SHARED PERCENTAGE OF INCOME for revenue sharing. It defaulted in my league to 40%

This obviously incorrect.

[Sweed]

Originally Posted by Poonox24

Looks like a new setting was added called SHARED PERCENTAGE OF INCOME for revenue sharing. It defaulted in my league to 40%

This obviously incorrect.

This is what google showed me, 48%. Blurb is dated Dec. 2021, no idea if that has changed since then.

So how does revenue sharing work? Teams presently contribute 48 percent of all local revenues, including gate receipts, local TV revenue, concessions, parking, sponsorships, etc, and the funds are then divided equally among all 30 teams.Dec 16, 2021

It's been in the game since at least v22, the oldest version I still have on my pc. No idea what the default is or was. My game has been imported from version to version since v4. Whenever I enabled it I set it to 20%.

I do note that in v22 and v23 one had to make a choice between revenue sharing or luxury tax, it was menu driven in one line. In v24 you can have both enabled as they each have their own separate line item in the settings. Maybe that's why you didn't see it in an older version?

[snepp]

It's not really a new setting, it has been there a long time. They just split the revenue sharing and luxury tax settings into two separate options instead of them being one or the other (a great change).

The default revenue sharing in a new save is 48% to simulate real life MLB.

I'm assuming you used the luxury tax option in the league you imported, or no revenue sharing at all. The import function probably shouldn't be enabling the full sharing if it wasn't enabled in the old save. It's a PITA, but at least it's correctable with a few minutes of editing.

[Le Grande Orange]

Originally Posted by Sweed

This is what google showed me, 48%. Blurb is dated Dec. 2021, no idea if that has changed since then.

That 48% figure is a misunderstanding of how MLB revenue sharing works.

The 48% value is used only to determine how much in total will be transferred from paying teams to receiving teams (the 'Net Transfer Value'). The actual amount teams share is lower, and varies due to the use of a weighted three-year average of local revenue to determine the transfer percentage for each club, which is then applied to the Net Transfer Value to calculate the exact amount a club pays or receives. This system has been in use since 2017. (There is also the added complication of certain teams being excluded from receiving revenue sharing due to defined market size. In this case the unused revenue sharing is refunded to paying teams, with the exception that some or all of such refunds might be forfeited if the team was a luxury tax payor.)

The details of the revenue sharing plans are in each CBA. Reading them as written does make them sound complicated, but once you start plugging in revenue numbers and run the calculations in a spreadsheet app, they become more understandable.

[Sweed]

Originally Posted by Le Grande Orange

That 48% figure is a misunderstanding of how MLB revenue sharing works.

The 48% value is used only to determine how much in total will be transferred from paying teams to receiving teams (the 'Net Transfer Value'). The actual amount teams share is lower, and varies due to the use of a weighted three-year average of local revenue to determine the transfer percentage for each club, which is then applied to the Net Transfer Value to calculate the exact amount a club pays or receives. This system has been in use since 2017. (There is also the added complication of certain teams being excluded from receiving revenue sharing due to defined market size. In this case the unused revenue sharing is refunded to paying teams, with the exception that some or all of such refunds might be forfeited if the team was a luxury tax payor.)

The details of the revenue sharing plans are in each CBA. Reading them as written does make them sound complicated, but once you start plugging in revenue numbers and run the calculations in a spreadsheet app, they become more understandable.

The post I quoted said that 40% was obviously incorrect. I just tried to give some real world information, as I found it. Like almost any game, going from OOTP to real world finances requires some simplification of the numbers to make it work in the scope of the game's economy.

So does OOTP's default 40% (taking the word of the OP as to default) closely mimic real life after all is said and done? Then again, with OOTP's economy being done in the abstract way it is, along with the ability to set it to whatever we want, maybe it doesn't matter?

[Le Grande Orange]

Originally Posted by Sweed

So does OOTP's default 40% (taking the word of the OP as to default) closely mimic real life after all is said and done? Then again, with OOTP's economy being done in the abstract way it is, along with the ability to set it to whatever we want, maybe it doesn't matter?

Rechecking the files I have, it seems I was looking at the wrong columns. The difference between the results of a 48% straight pool plan versus the final outcomes using a weighted three-year average are likely small. The total amount transferred from paying teams to receiving teams is that of a 48% tax rate based on the prior year's local revenue.

Earlier plans used a tax rate of 31% or 34%, although there was also a Central Fund component which was added on top of that.

Ultimately, of course, the user can choose whatever rate they feel is best for their league.

[Sweed]

Originally Posted by Le Grande Orange

Rechecking the files I have, it seems I was looking at the wrong columns. The difference between the results of a 48% straight pool plan versus the final outcomes using a weighted three-year average are likely small. The total amount transferred from paying teams to receiving teams is that of a 48% tax rate based on the prior year's local revenue.

Earlier plans used a tax rate of 31% or 34%, although there was also a Central Fund component which was added on top of that.

Ultimately, of course, the user can choose whatever rate they feel is best for their league.

Thanks for the info.

[snepp]

So local revenue would be gate, merchandise, and local media.

OOTP for simplicity taxes the total revenue stream, all the above plus playoff and national media, the full "revenue subtotal" line.

40% off all revenue might end up being pretty close to "mimicking" the RL figure of 48% local. I'd dump my financials in a spreadsheet to see how close it actually works, but I don't think I'm curious enough to bother.

[Le Grande Orange]

Originally Posted by snepp

So local revenue would be gate, merchandise, and local media.

In real life it's everything baseball related which is not national revenue, so ticket sales, luxury suites, merchandise, concessions, local media, advertising, and so forth. Note that stadium expenses are deducted from local revenue, with the result being the value used in revenue sharing calculations.

Originally Posted by snepp

OOTP for simplicity taxes the total revenue stream, all the above plus playoff and national media, the full "revenue subtotal" line.

In real life national revenue is not included in revenue sharing calculations, nor is post-season revenue.

Originally Posted by snepp

I'd dump my financials in a spreadsheet to see how close it actually works, but I don't think I'm curious enough to bother.

Post up three years' worth of club financial figures and I'll run some tests of various revenue sharing plans.