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Post by Commish_Ron on May 19, 2020 13:28:13 GMT -5
Currently PBL uses a luxury tax for revenue sharing which is directly tied to payroll. The proposal here is to switch to Income tax which is tied to revenue. Income tax would be implemented at 15%. This would approximately mirror the total league dollars distributed through revenue sharing as what we have today. Obviously individual teams would see various impacts but in aggregate the number of dollars moving around would be very similar.
For comparison, MLBs revenue sharing is currently set at 34%.
This is a rule change and requires 75% approval to pass. Proxy votes will bet set to Yes.
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Post by sansterre - Milwaukee Brewers on May 19, 2020 13:59:01 GMT -5
Everyone's welcome to their own opinion but this seems like a no-brainer. Whatever the rate ought be set at, it ought clearly be aimed at revenue and not a proxy for revenue.
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Post by Arizona_PBL on May 19, 2020 14:09:30 GMT -5
Can we get more clarification/example on how this would work exactly? For example will all teams pay the tax or just the top 15 teams?
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Post by Commish_Ron on May 19, 2020 14:16:08 GMT -5
Can we get more clarification/example on how this would work exactly? For example will all teams pay the tax or just the top 15 teams? Each team would contribute 15% of their revenue to a pool. Then that pool is divided by 32 and distributed evenly among all teams. So it all depends how top heavy the revenue is for how many teams contribute and how many benefit.
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Post by Arizona_PBL on May 19, 2020 14:21:11 GMT -5
Would there be a way to sandbox this and post the results to make sure that is what the game will do? The "turn off owner control" came back with some weird results. Want to make sure its acting as intended.
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Post by Commish_Ron on May 19, 2020 14:24:34 GMT -5
Would there be a way to sandbox this and post the results to make sure that is what the game will do? The "turn off owner control" came back with some weird results. Want to make sure its acting as intended. Excellent thought. The difference is that the OOTP manual has no information at all on the "turn off owner control" setting. Conversely the revenue sharing is spelled out very clearly here: manuals.ootpdevelopments.com/index.php?man=ootp20&page=financialsHere is the quote: Revenue Sharing Determines whether or not the league uses revenue sharing. There are three options: No revenue sharing - The league does not have revenue sharing Luxury Tax - The league sets a "Soft Cap" as a % of the league average payroll, and a "Tax above Soft Cap" as a %. On the first day of the offseason, OOTP totals the payroll expenses of all teams in the league and averages them. It multiplies this number by the Soft Cap % to determine a cap figure. Any team that spent over this cap pays the "Tax above Soft Cap" into a revenue sharing pool. This pool is split equally between the bottom spending teams. Set Percentage of Income - On the first day of the offseason, all teams pay a set % of their income into a pool of money. That pool of money is then divided equally between all teams in the league. (When this is selected, an additional field will become available to allow you to set the desired percentage.)
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Post by Tim_GiantsGM on May 19, 2020 14:37:31 GMT -5
Revenue and income have different meanings to me.
Revenue - cash received by the team via ticket sales (season and playoffs), merchandising, and the media contract.
Income - the net amount remaining after subtracting all team expenses (identified as season profit/loss on the accounting page).
Does this process use team revenue in the calculations?
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Post by Arizona_PBL on May 19, 2020 14:40:01 GMT -5
Would there be a way to sandbox this and post the results to make sure that is what the game will do? The "turn off owner control" came back with some weird results. Want to make sure its acting as intended. Set Percentage of Income - On the first day of the offseason, all teams pay a set % of their income into a pool of money. That pool of money is then divided equally between all teams in the league. (When this is selected, an additional field will become available to allow you to set the desired percentage.) So, is this based on projected income for the coming year or based on the total income from the previous season (before or after the owner takes his cut? Also would raising the money cap affect this?
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Post by Commish_Ron on May 19, 2020 14:41:48 GMT -5
Revenue and income have different meanings to me. Revenue - cash received by the team via ticket sales (season and playoffs), merchandising, and the media contract. Income - the net amount remaining after subtracting all team expenses (identified as season profit/loss on the accounting page). Does this process use team revenue in the calculations? Researching.....
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Post by Commish_Ron on May 19, 2020 14:43:12 GMT -5
Set Percentage of Income - On the first day of the offseason, all teams pay a set % of their income into a pool of money. That pool of money is then divided equally between all teams in the league. (When this is selected, an additional field will become available to allow you to set the desired percentage.) So, is this based on projected income for the coming year or based on the total income from the previous season (before or after the owner takes his cut? Also would raising the money cap affect this? It is based on last season's income. Raising max cash should have no affect. Max cash affects your opening balance but not the income earned through the season.
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Post by Commish_Ron on May 19, 2020 14:46:43 GMT -5
To Tim's question which I paraphrase to "What is OOTPs definition of income?" I am not seeing a clear definition. I will sandbox a rollover tonight and we should be able to determine the calculation based on the data.
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Post by Commish_Ron on May 19, 2020 17:54:08 GMT -5
Ran the sand box. It is a percentage of total revenue which includes, Gate Revenue, Season Tickets, Media revenue, Merchandise and Playoff revenue.
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Post by Commish_Ron on May 19, 2020 18:29:48 GMT -5
Attached is the team by team breakdown of the current system settings and the proposed ones for next season. Note, both of these were generated using the same final day before the off season. So the comparison is good but the final finances of the sandbox does not match what PBL will close out with. So next seasons numbers will be slightly different in either setting. Only 5 teams have a difference over $6 million with Braves, Rangers and Giants paying in more and Diamondbacks and Royals receiving more. 1/2 of the league see a difference of under $3 million.
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Post by Arizona_PBL on May 19, 2020 20:42:07 GMT -5
Thanks for running the numbers Ron, I greatly appreciate it.
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Post by craigWhiteSox on May 20, 2020 9:32:29 GMT -5
In theory, I could do a bad job managing my finances, with one of the higher payrolls and higher budgets I could not be in the green for revenue. But then GET revenue from smaller market teams, who did a good job managing finances? Even if it’s 6 mil. That’s 6 mil too much for me to be bailed out on bad choices.
It seems, in theory, that the well managed teams will just be covering losses for the non-well managed teams. Am I reading this wrong ?
Example would the Royals, who had a 202 mil budget and a 182 payroll be given money in the new setting, while the old one has them paying out 8 mil due to them being one of the highest payrolls and budgets. A difference of 10 mil is quite a lot
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