Financial Parity

[assamarra]

I have a 12 team league that I am looking to apply some financial parity.

I have started to level out the ballpark capacities in a phased approach so each team will have the same ballpark capacities in a couple of seasons, I have done it this way so not to penalise the teams who are losing capacity.
Additionally the ticket prices are set at a price, teams are not allowed to change the ticket prices and the gate is shared 50/50.

Below the Financial Settings for the league......

Financial Summary & Projections

Avg Team Revenue - 56.3m
Approx Revenue Range - 46.9m - 62.1m
Avg Budget - 50.7m
Avg Player Payroll - 28.65m
Avg Team Expenses - 10.65m
Avg Profit - 17.0m

Attendance Settings

Att baseline per game - 30,000
Ticket price baseline - 19.00 (fixed)
Visiting team's gate share - 50%

Financial and FA Settings

Yearly inflation - 0% to 1%

Team Revenue Settings

National Media Contract Baseline - 6m (fixed, same for every team)
Local Media Contract baseline - 2.5m
Merchandising Revenue Baseline - 2.5m
Team Owner control budgets - no, entire revenue available
Revenue Sharing - Luxury Tax
Soft Cap (% of average payroll) - 110
Tax above Soft Cap - 25
Cash Maximum - 10.0m

Team Expenses & Salary Settings

Player dev budget baseline - 2.5m
Scouting Budget baseline - 2.0m
Coach Salary Baseline - 100k
SuperStar typical salary - 4.0m
Star typical salary - 3.5m
Good typical salary - 2.5m
Above Avg typical salary - 2.0m
Average typical salary - 1.375m
Below average typical salary - 875k
Fair quality typical salary - 500k
Poor quality typical salary - 200k
Minimum Player salary - 150k
Contract Years Maximum - 3 years
Contract Extensions - Allowed
Team Salary Cap - 0

Ideally I have a figure in mind I would like each team to have as a budget.

Is there any settings I can change to achieve that and then maintain and amend when I want to.

I am also aware of the teams who currently have a budget above the figure in mind will need to come down and I would do that incremently so to lessen the impact.

Any advice welcomed, thanks in advance

[Pelican]

Yours is a comprehensive scheme. The values are substantially reduced - at varying rates - from 2023 MLB. While attendance is close to the current average, the superstar annual salary is 10% of today (Aaron Judge). The average ticket is 25% of IRL (thank you for that!). It seems like your teams should have sufficient revenue to fund the operations you have laid out.

I applaud you for taking firm measures to promote parity, up to sharing ticket revenue on a 50/50 basis. Teams starting from a comparable base of funds will vary based on the expertise of management, not the deep pockets of an owner. At least, that’s the hope. Over time, I wonder if your better teams will draw more fans, create more revenue, and enjoy continued success as a result? It is hard to forestall “the rich get richer”.

As Commissioner, you can set identical starting budgets for the teams. Remember to check cash on hand as well. But, once your sim starts, there will be variations in revenue. And some teams may simply fail to spend money they have.

You haven’t said how you are handling arbitration and free agency. If you use the current MLB system, you’ll have those players heading to salary arbitration and then to free agency. That is bound to drive up your average annual salary from the modest figures you have chosen to start. As in MLB, there is no easy way to restrain team spending, once free agency is allowed. You may wish for the reserve clause.

[assamarra]

Originally Posted by Pelican

Yours is a comprehensive scheme. The values are substantially reduced - at varying rates - from 2023 MLB. While attendance is close to the current average, the superstar annual salary is 10% of today (Aaron Judge). The average ticket is 25% of IRL (thank you for that!). It seems like your teams should have sufficient revenue to fund the operations you have laid out.

I applaud you for taking firm measures to promote parity, up to sharing ticket revenue on a 50/50 basis. Teams starting from a comparable base of funds will vary based on the expertise of management, not the deep pockets of an owner. At least, that’s the hope. Over time, I wonder if your better teams will draw more fans, create more revenue, and enjoy continued success as a result? It is hard to forestall “the rich get richer”.

As Commissioner, you can set identical starting budgets for the teams. Remember to check cash on hand as well. But, once your sim starts, there will be variations in revenue. And some teams may simply fail to spend money they have.

You haven’t said how you are handling arbitration and free agency. If you use the current MLB system, you’ll have those players heading to salary arbitration and then to free agency. That is bound to drive up your average annual salary from the modest figures you have chosen to start. As in MLB, there is no easy way to restrain team spending, once free agency is allowed. You may wish for the reserve clause.

Yours is a comprehensive scheme. The values are substantially reduced - at varying rates - from 2023 MLB.

Should have mentioned it is a *** league created in 2021.

As Commissioner, you can set identical starting budgets for the teams. Remember to check cash on hand as well. But, once your sim starts, there will be variations in revenue. And some teams may simply fail to spend money they have.



I am considering changing to a revenue sharing scheme but unsure at what % the sharing should be set at, will be running seasons to see how that impacts and closes the gap between the rich and not so rich.

Thanks for the feedback, much appreciated.