Author Topic: Salary Cap Calculation questions  (Read 264 times)

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Offline tdtdtd

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Salary Cap Calculation questions
« on: January 09, 2022, 01:17:28 PM »
I have a couple questions/comments about the salary cap calculations still.

1. Is there any way to view my team's salary cap value for the previous year(s)? That seems needed to calculate the future caps, and I don't see any way of finding it.

2. In the example in the rulebook, shouldn't that calculation be for 2011 since it is 2 years out?

On an unrelated note, am I supposed to do something if I want my team page updated for 2021 results or does Flash just do all those and hasn't quite finished yet? I noticed the 2015-19 results are probably not right either. This isn't a big issue, but it would be nice if the information was correct if it is going to be there.
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Offline tdtdtd

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Re: Salary Cap Calculation questions
« Reply #1 on: January 09, 2022, 01:24:55 PM »
Also,

3) What is used for the payroll values? Spotrac?

4) Is the 20m not added to the stand anymore? It doesn't seem like it was in the example at the end of the rules.
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Offline Flash

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Re: Salary Cap Calculation questions
« Reply #2 on: January 09, 2022, 05:44:58 PM »
Also,

3) What is used for the payroll values? Spotrac?

4) Is the 20m not added to the stand anymore? It doesn't seem like it was in the example at the end of the rules.

When Franchise GM first began, real-life salaries were used, but we no longer use real-life salaries.  Instead, our salaries are based on the total yearend contracts of each team.  At the end of the season, all the rostered players who were not dropped prior to the end of the season, either by being Released under Contract or through a Contract Buyout, are ranked by position and placed on our Extension Values Scale.

Team salary caps are based on a three year scale to calculate the salary caps for the season immediately following the present season.  Those calculations are based on two factors:

1:  75% of a team?s present and two previous years, so for 2022, the years used were 2019, 2020, and 2021;

2:  25% comes from the team?s finish in the standings for the same years.  All the teams are ranked from highest to lowest and the 25% is based on where a team finishes (1-30).

Those 6 dollar amounts are added together and divided by 3.  The final amount of that equation becomes the salary cap for the season following the present one, in this case 2022.  Teams usually don?t have a big jump or big drop in cap.  Caps usually fluctuate single digit amounts.  We have a limitation of $20.0m, but in my years in the league I have never seen an increase or decrease coming close to that figure.

Our highest cap figure is $164.0m and the lowest is $75.5m.  As a league, we do not have playoff bonuses, and during the past six years, the highest cap amount decreased because the top team finished at the bottom of standings four successive years while the teams with the lowest caps finished higher in the standings.

There is no public record of salary caps other than our team rosters.
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Offline tdtdtd

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Re: Salary Cap Calculation questions
« Reply #3 on: January 09, 2022, 07:24:55 PM »
If you mean the 25% part would take use the 10th highest FGM salary cap for the team that placed 10th in the standings (as opposed to using 10th highest real payroll), then the rulebook should probably be revised. It says

"It is designed to take into account current market position, winning, and real life economic fluctuations.  This new system fixed two problems that exist in the previous structure: huge swings in cap year-to-year for mid-large market teams AND the lack of a tie to real life salaries over time."

It sounds like there is no longer any tie to real life salaries.

Also, if 2018-2020 salaries are used for 2021 (which contradicts the rules and would need updated*), doesn't that mean that the 2023 salary cap values are not set in stone yet since they depend on the 2021 final standings?

*"Therefore, the average returns between 2007 and 2009 would be used in calculating the 2011 cap."
and other places.

I realize that the salary cap changes are small enough that it doesn't matter much, but I also think it is a little annoying that the rules don't explain how it is calculated well. And also that the information needed to estimate future caps does not exist on the site.
« Last Edit: January 09, 2022, 07:47:17 PM by tdtdtd »
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Offline Flash

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Re: Salary Cap Calculation questions
« Reply #4 on: January 09, 2022, 09:02:35 PM »
If you mean the 25% part would take use the 10th highest FGM salary cap for the team that placed 10th in the standings (as opposed to using 10th highest real payroll), then the rulebook should probably be revised. It says

"It is designed to take into account current market position, winning, and real life economic fluctuations.  This new system fixed two problems that exist in the previous structure: huge swings in cap year-to-year for mid-large market teams AND the lack of a tie to real life salaries over time."

It sounds like there is no longer any tie to real life salaries.

Also, if 2018-2020 salaries are used for 2021 (which contradicts the rules and would need updated*), doesn't that mean that the 2023 salary cap values are not set in stone yet since they depend on the 2021 final standings?

*"Therefore, the average returns between 2007 and 2009 would be used in calculating the 2011 cap."
and other places.

I realize that the salary cap changes are small enough that it doesn't matter much, but I also think it is a little annoying that the rules don't explain how it is calculated well. And also that the information needed to estimate future caps does not exist on the site.

I really am sorry you?re annoyed, but prior to your entrance into the league it was conveyed to everyone who was a GM at the time, that our cap and extensions would be based on the salaries we give our players within the league?based on the concept of supply and demand.

As you have suggested, I will look over the existing rules and update them so there is no confusion. 

As far as 2023 is concerned, I misspoke earlier.  This is what I should have posted:
?75% of a team?s present and two previous years, so for 2022, the years used were 2018, 2019, and 2020.?  So for 2023, the cap calculations are based on 2019, 2020, and 2021. 

I will also update your team history in the near future.
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Offline tdtdtd

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Re: Salary Cap Calculation questions
« Reply #5 on: January 10, 2022, 08:22:02 AM »
Thanks for the clarifications.

Sorry for all the questions. I didn't mean to make a big deal out of it since it doesn't change much year to year.
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