Wednesday, December 17, 2008

Revenue Sharing and You: A system to be placed

Yet another bit from the commish. This time on revenue sharing.

OOTP9 allows for revenue sharing per a simple flag in the setup. Well and good. Should we implement it? Mack and I have been over this a bit addresses concerns of fairness, implementation, current salary sets and other factors. While we both seem to like the idea of revenue sharing we're leery about it as well.

Here is what we arrived at:

Barring some huge outcry from our constituency (you guys) we will implement revenue sharing following the 2007 season at our discretion.

The delay is for a few reasons:

1. We're facing a new financial system, one that undoubtedly has landmines in it. We'd like to avoid adding revenue sharing to that while the initial transition is underway.

2. Mack and I are still acclimating ourselves to the new software and want to minimize the things with which we have to cope.

3. Players have set salaries and contracts and we wanted to give current owners enough time to adjust strategy and make preparations for revenue sharing's implementation.

I'd like to see some discussion on this, obviously, but I think it makes sense.

Questions? Concerns? Address them in the comments, please.

7 comments:

Jeremy Goldman said...

Can you explain a bit more about how revenue sharing works in OOTP 9?

Jeremy Goldman said...

Nate posted this as a comment in the other thread...though I would put it here:

It's pretty understated. Here's the definition from the manual:

"Determines whether or not the league uses revenue sharing. Either there is no revenue sharing, or any cash in
a team's treasury above the Cash Maximum (see below) is shared between all teams. The revenue sharing
calculation takes place on the first day of the offseason.
Revenue sharing works as follows: At the end of the season, all profits that would put any team above the
Cash Maximum are put into a pool. This pool is then divided evenly among all teams that had a financial
loss."

Given that system and the high cash maximum we're putting in place it shouldn't bite often but in a few years it could.

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I think this would be a good addition with that said and we might want to change the cash max to something like $150M or $100M.

Mack Shultz said...

As an owner, I'm ambivalent about revenue sharing. But, if we do implement it, the cash cap should come down. I just didn't want to take away any of Cairo's hard fought wealth while we decided what to do. :)

Nate Wooley said...

It'd be easy enough to change the initial cash cap to $100MM.

For that matter Mack and I have discussed my proposals in the other league for park changes and team marketing. If that's something people are interested in we should discuss it as well.

Matt Macario said...

I think we should wait to see how finances work in 9.0 before making a decision on this. I do like Nate's suggestions in the other league and would support their implementation here as well.

Nate Wooley said...

Well, that's why I set it to kick in after season #3 of the new system. I want to plan for that event but leave enough wiggle room to change our minds, just in case.

Matt Macario said...

Yup, I meant to add a sentence acknowledging that but forgot. You guys have the right approach.