With the end of the Cecil Cup (congrats, Eric) and the start of the offseason, the game has given everyone new budgets and, for those whose media contracts expired, new media contracts.
I know we're going to be discussing the league finances. Here is some raw data I put together this morning that may help us discuss the finances issue:
The columns are largely self-explanatory. The last two are some comparisons. The first column compares the 2016 budget given by the game with the club's 2015 revenue. Negative numbers mean the 2016 budget is higher by that amount than the 2015 revenue. The last column "corrects" that figure by taking into account any changes (all increases) in the club's media revenue between 2015 and 2016.
Interesting data. Nice that my media revenue went up $15m. It helped decide whether to exercise my option on Jeffrey Shuttleworth's contract for next season.
ReplyDeleteI'll throw out my unsolicited opinion that there isn't anything significantly wrong with the league's current financial model, at least not after the media contract tweaks we inserted last year and the game taking those changes into account this season. The media revenues range from a low of $46M to a high of $70M and the team budgets are in a range from approximately $70M to approximately $125M. This seems reasonable to me.
ReplyDeleteI think a couple of small tweaks are in order, to really balance things out. There are two teams that have budgets more than $10M below their expected income. I'd recommend increasing their budgets to bring them closer to the expected revenue. This would mean giving Cleveland a $1 million increase in budget and Maui a $7 million increase in budget.
I'd also decrease the budgets of the teams whose budgets are outstripping their expected revenues. I'd recommend dropping them to no higher than a projected $5 million deficit. That would mean reducing LA's budget by $4 million and NY's budget by $3 million. Especially in the case of LA and the oddities resulting from the conversion from OOTP6.5 to OOTP9 , I think the era of red ink on the balance sheet needs to come to an end. (Nothing personal Paul and Michael.)
Just my two cents. I don't feel overwhelming strongly about the issues above or the $10M and $5M numbers I picked out of the air, but they just feel fair to me.
OK Zev, I am just wondering what we are supposed to do with this information...I agree with Mack that I don't really see an issue here even though my team is getting screwed in the media contracts most of the teams are making it work. I think the issue that most leagues have with the finances is that they use such a small amount of sample years at the beginning before everything can even out. If there is something that we should do about finances then lets get it out there and vote on it.
ReplyDeleteJeremy, note that I put the information up, not Zev. I presumed that since we seem to have resolved the injury and schedule issues, we'd tackle the financial issues next so we could get moving on the offseason. I just wanted to put this data out there for consideration.
ReplyDeleteThat is why I started off my comment with 'OK Zev' directing the comments at him. I was just seconding your observation about how there is not much of an issue here. Don't really have much of a comment on the adjustments if needed.
ReplyDeleteNor I. Though I'd like to see some sort of motion forward on the off season. What's the story?
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