Pro/Rel Financial Analysis - Page 3

Matt Uk · 03-29-2017, 10:55 AM

Lots to chew on with this Pro/Rel and how best to do it.

Some thoughts...

I think a league wide salary cap may help, perhaps no cap in the top league and then a reducing one as you go down.

I think reserve rosters (with a limit - 25?) has to be the way to go rather than them having minor league teams.

Luxury Tax - best to turn it off, ie No revenue sharing?

No draft (just my opinion)

Allow trades with other major leagues

National Media Contract - I think this has to be shared per team rather than market size to allow those teams getting promoted who might be small market to still get their share of the media money and give them more chance of competing.

Play offs - Off. Unless you want to set something up for the top league to decided a champion other than the team finishing first.

International Free Agents - not sure, I'm leaning towards off.

League Level - I think setting all leagues to Major Leagues and just decrese the reputation as you go down.

I think I'm going to set up a test one like that and see how it plays out.

Rain King · 03-29-2017, 11:56 AM

I agree with pretty much all of that.

ripitback · 03-29-2017, 12:16 PM

Quote:

Originally Posted by Matt Uk

Lots to chew on with this Pro/Rel and how best to do it.

Some thoughts...

I think a league wide salary cap may help, perhaps no cap in the top league and then a reducing one as you go down.

I think reserve rosters (with a limit - 25?) has to be the way to go rather than them having minor league teams.

Luxury Tax - best to turn it off, ie No revenue sharing?

No draft (just my opinion)

Allow trades with other major leagues

National Media Contract - I think this has to be shared per team rather than market size to allow those teams getting promoted who might be small market to still get their share of the media money and give them more chance of competing.

Play offs - Off. Unless you want to set something up for the top league to decided a champion other than the team finishing first.

International Free Agents - not sure, I'm leaning towards off.

League Level - I think setting all leagues to Major Leagues and just decrese the reputation as you go down.

I think I'm going to set up a test one like that and see how it plays out.

My only concern would be on the salary cap. If a team with a high payroll was relegated and now they are over the cap in the league they are relegated too.

Rain King · 03-29-2017, 12:29 PM

Quote:

Originally Posted by ripitback

My only concern would be on the salary cap. If a team with a high payroll was relegated and now they are over the cap in the league they are relegated too.

Good point, I guess I missed that one. I do not like the salary cap for pro/reg.

Tyke · 03-29-2017, 04:52 PM

Would it mean that a relegated team would need to dump salary, forcing them to release more expensive players? If so, that would be realistic. And didn't I read somewhere that there might be a contract clause that would give players the option to file as free agents if the team was relegated?

Jakeydude18 · 03-29-2017, 07:22 PM

Quote:

Originally Posted by Tyke

Would it mean that a relegated team would need to dump salary, forcing them to release more expensive players? If so, that would be realistic. And didn't I read somewhere that there might be a contract clause that would give players the option to file as free agents if the team was relegated?

In theory they would have to release players if a team gets relagated. But, in most open league systems (where P/R is a thing) there isn't a salary cap. Usually the decrease in revenue and ticket sales equates to teams having to release players in order to maintain profit.

In baseball, and in the code of game (I think), contracts are guaranteed so releasing players would give teams a huge loss in a very short amount of time. Plus the added bonus of not generating the same revenue as the year prior seems to be a double whammy in my opinion.

Bahnzo · 03-29-2017, 11:10 PM

Quote:

Originally Posted by Jakeydude18

In theory they would have to release players if a team gets relagated. But, in most open league systems (where P/R is a thing) there isn't a salary cap. Usually the decrease in revenue and ticket sales equates to teams having to release players in order to maintain profit.

In baseball, and in the code of game (I think), contracts are guaranteed so releasing players would give teams a huge loss in a very short amount of time. Plus the added bonus of not generating the same revenue as the year prior seems to be a double whammy in my opinion.

Yeah, the guaranteed contracts and not being able to sell players kind of handcuffs this a bit. Plus a lot of players have a release clause in their contracts if a club gets demoted so they are gone on a free transfer.

Matt Uk · 03-31-2017, 12:16 PM

Maybe that's something that might be handy to add from Pro/rel games then, an option to release a player with no cost involved.

Bill Veeck · 04-01-2017, 04:24 PM

This is great stuff guys. Trying to replicate how promotion and relegation works financially in the Premier League and below is tricky and would be tricky if applied to the majors. You sometimes have big teams relegated in England (although it is rare) and they have larger stadia generally - one right now averaging over 50,000 per match despite having been relegated. The big difference is media rights and that would probably be largely the same here. A second division would have a hard time generating media dollars in the US compared to a first division. That's where you have to make your difference.

And this is largely proven because even large relegated clubs over there often have a hard time getting back up even with what are called "parachute payments" designed to give them a soft landing when going from 100m to 10m or less. Once the huge media dollars go...

hoffspur · 11-27-2018, 03:23 PM

Setting up a Pro/Rel league and this has been a fantastic resource.

I'm very curious how the 4th sim turned out with the slight inflation, though.

03-29-2017, 04:52 PM	#45
Tyke All Star Reserve Join Date: Apr 2002 Location: Brighouse, West Yorkshire, U.K. Posts: 844 Thanks: 1,639 Thanked 260x in 220 posts	Would it mean that a relegated team would need to dump salary, forcing them to release more expensive players? If so, that would be realistic. And didn't I read somewhere that there might be a contract clause that would give players the option to file as free agents if the team was relegated? Last edited by Tyke; 03-29-2017 at 04:56 PM.

03-29-2017, 10:55 AM	#41
Matt Uk Major Leagues Join Date: Jul 2002 Location: UK Posts: 449 Thanks: 467 Thanked 270x in 150 posts	Lots to chew on with this Pro/Rel and how best to do it. Some thoughts... I think a league wide salary cap may help, perhaps no cap in the top league and then a reducing one as you go down. I think reserve rosters (with a limit - 25?) has to be the way to go rather than them having minor league teams. Luxury Tax - best to turn it off, ie No revenue sharing? No draft (just my opinion) Allow trades with other major leagues National Media Contract - I think this has to be shared per team rather than market size to allow those teams getting promoted who might be small market to still get their share of the media money and give them more chance of competing. Play offs - Off. Unless you want to set something up for the top league to decided a champion other than the team finishing first. International Free Agents - not sure, I'm leaning towards off. League Level - I think setting all leagues to Major Leagues and just decrese the reputation as you go down. I think I'm going to set up a test one like that and see how it plays out.

03-29-2017, 11:56 AM	#42
Rain King All Star Reserve Join Date: Nov 2005 Posts: 608 Thanks: 392 Thanked 315x in 206 posts	I agree with pretty much all of that.

03-31-2017, 12:16 PM	#48
Matt Uk Major Leagues Join Date: Jul 2002 Location: UK Posts: 449 Thanks: 467 Thanked 270x in 150 posts	Maybe that's something that might be handy to add from Pro/rel games then, an option to release a player with no cost involved.

04-01-2017, 04:24 PM	#49
Bill Veeck Minors (Rookie Ball) Join Date: Aug 2014 Posts: 27 Thanks: 54 Thanked 14x in 10 posts	This is great stuff guys. Trying to replicate how promotion and relegation works financially in the Premier League and below is tricky and would be tricky if applied to the majors. You sometimes have big teams relegated in England (although it is rare) and they have larger stadia generally - one right now averaging over 50,000 per match despite having been relegated. The big difference is media rights and that would probably be largely the same here. A second division would have a hard time generating media dollars in the US compared to a first division. That's where you have to make your difference. And this is largely proven because even large relegated clubs over there often have a hard time getting back up even with what are called "parachute payments" designed to give them a soft landing when going from 100m to 10m or less. Once the huge media dollars go...

11-27-2018, 03:23 PM	#50
hoffspur Minors (Single A) Join Date: Mar 2018 Posts: 91 Thanks: 67 Thanked 12x in 9 posts	Setting up a Pro/Rel league and this has been a fantastic resource. I'm very curious how the 4th sim turned out with the slight inflation, though.