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 Finances: New system in 2013-14

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PostSubject: Finances: New system in 2013-14   Sun Feb 24, 2013 1:56 pm

We are working on a system where GMs will get paid for their participation in the league (starting in 2013-14). You would get a salary for sending lines, voting for different events, being present at the drafts, etc. I don't know if you check the teams' finances carefully, but we are all heading in a wall within the next 2-3 years. This is a phenomenon observed in several leagues like us, revenues generated are not high enough to keep teams with average/high payroll out of bankruptcy, even teams flirting with the floor cap would be in trouble after a few years if they don't make the playoffs. We have changed the league's settings so the Sim would generate a maximum of revenues and we're still short.

For example, my team... i'll lose $23 million this year (before playoffs) lets say i make 2 playoff rounds i might lose approximately 13$ millions this year. Next year, same scenario, 2 playoffs rounds... 3rd year, Bankruptcy! even if i fill up my arena at a rate of 94% and participating to 2 playoffs rounds every year (remember, only 4 teams can go over 2 playoff rounds).

So basically, i would need to win the cup every year to keep a payroll near the maximum allowed and this just to break even.

Different situation now, let's say the Sharks. Payroll of $48.9 Million this year, filling up their arena at an excellent rate (93%), will lose 10$ millions this year, no playoffs this year in San Jose. 2 more years, bankruptcy... of course he might participate to the playoffs in the following years and make more money... as he'll also have to sign his star players and UFAs to get better and will raise his expenses.

And these examples are not the worst cases in the league, several team will fill for bankruptcy following the 2013-14 season even in they drop their payroll to the minimum allowed. Like i mentioned it earlier, this problem is present in several other leagues like this one.

By giving you a salary for your participation, we are achieving 2 things; keep out of bankruptcy teams that are well managed and get more participation from the GMs. It's already clearly stated in the rules, bankruptcy means you lose your team, it was only based on bad decisions you would make, now it'll based on bad decisions and not being an active GM.
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