Question about finances/max cash/revenue sharing

PotatoPeeler · 12-09-2002, 05:21 PM

I just can't seem to get my head around this and was wondering if some of you guys could help. This is a league at the end of it's first year where each team was given $40,000,000 cash to start and a $25,000,000 cash max has been implemented.

Team A revenue: $33,000,000
Team A payroll: $54,000,000
Team A profit: -$21,000,000

Team B revenue: $28,000,000
Team B payroll: $7,000,000
Team B profit: $21,000,000

So, at the end of the year, Team A will have $19,000,000 in cash ($40M - $21M) and team B will have $61,000,000 in cash ($40M + $21M).

So, with a $25 million cash limit, Team B will throw $36,000,000 into the revenue sharing pool and Team A will throw in nothing. Further more, is it correct to assume that Team A will be eligible to receive money from the revenue sharing pool?

Am I figuring this all correctly? If not, please point out what I am doing wrong.

Thanks.

Mark_N_Ga · 12-09-2002, 09:47 PM

I think you're correct about team B putting 36 mill into revenue sharing, But I don't think team A will get anything. A team must have negative cash in order to get revenue sharing and from your figures, team A still has cash on hand.

PotatoPeeler · 12-09-2002, 10:00 PM

Thanks for the response. That clears some stuff up. Still, if Team A were to go out and spend $22 million or so to give them negative cash, they would get money from revenue sharing? Seems kind of stupid to reward a team for spending so much more money than they can make.

12-09-2002, 05:21 PM	#1
PotatoPeeler Hall Of Famer Join Date: Aug 2002 Location: Rapid City, SD Posts: 3,639	Question about finances/max cash/revenue sharing I just can't seem to get my head around this and was wondering if some of you guys could help. This is a league at the end of it's first year where each team was given $40,000,000 cash to start and a $25,000,000 cash max has been implemented. Team A revenue: $33,000,000 Team A payroll: $54,000,000 Team A profit: -$21,000,000 Team B revenue: $28,000,000 Team B payroll: $7,000,000 Team B profit: $21,000,000 So, at the end of the year, Team A will have $19,000,000 in cash ($40M - $21M) and team B will have $61,000,000 in cash ($40M + $21M). So, with a $25 million cash limit, Team B will throw $36,000,000 into the revenue sharing pool and Team A will throw in nothing. Further more, is it correct to assume that Team A will be eligible to receive money from the revenue sharing pool? Am I figuring this all correctly? If not, please point out what I am doing wrong. Thanks. __________________ 培傑西 I have never taken a lesson on how to talk on TV in my life. - Tim McCarver Guns have only two enemies; rust and liberals. The world is a comedy to those that think; a tragedy to those that feel.

12-09-2002, 10:00 PM	#3
PotatoPeeler Hall Of Famer Join Date: Aug 2002 Location: Rapid City, SD Posts: 3,639	Thanks for the response. That clears some stuff up. Still, if Team A were to go out and spend $22 million or so to give them negative cash, they would get money from revenue sharing? Seems kind of stupid to reward a team for spending so much more money than they can make. __________________ 培傑西 I have never taken a lesson on how to talk on TV in my life. - Tim McCarver Guns have only two enemies; rust and liberals. The world is a comedy to those that think; a tragedy to those that feel.

12-09-2002, 09:47 PM	#2
Mark_N_Ga Minors (Rookie Ball) Join Date: Mar 2002 Location: Atlanta GA Posts: 49	I think you're correct about team B putting 36 mill into revenue sharing, But I don't think team A will get anything. A team must have negative cash in order to get revenue sharing and from your figures, team A still has cash on hand.