Post by yankeesgm on Dec 20, 2007 0:05:01 GMT -5
Don't mean to call someone specifically out, but how are the financial rules upheld in this league? In my league...We strongly discourage negative cash flow so long as it's minimal or manageable at best and temporary.
For example, in this league, the Braves have a $116M payroll, which is fine, and had about $84M in revenues last season. This season is looking at a 15% less attendance revenues and roughly the same for merchandising as they had from last season. Thus, the expected revenue should be $71M + the increased TV deal, which brings in another $2.5M, bringing it up to $73.5M in revenues for 2005.
$73.5M - $116M = a loss of $42.5M. With $36M available in cash means the Braves, if nothing happens, will have a DEBT of $6.5M...
If left alone until 2006, this means, in order to break even, the payroll needs to drop down to $67M---cutting nearly $50M in salary, before Opening Day.
This season is about 23.5% complete...meaning with a payroll of $116M, a little more than $27M should have been spent---which is correct according to the financial page. So for the remaining 76.5% of the season, in order to just break even and lose all of the available cash (all 36M of it) at the end of this season, the team needs to spend $82M for the rest of the season, which is equivalent to a payroll of $107.2M. That means $9M of payroll has to be removed NOW, just to break even this season. The deeper into the season payroll changes aren't made, the bigger the changes need to be in order to realize any money for 2006.
How will this be addressed for future purposes??
For example, in this league, the Braves have a $116M payroll, which is fine, and had about $84M in revenues last season. This season is looking at a 15% less attendance revenues and roughly the same for merchandising as they had from last season. Thus, the expected revenue should be $71M + the increased TV deal, which brings in another $2.5M, bringing it up to $73.5M in revenues for 2005.
$73.5M - $116M = a loss of $42.5M. With $36M available in cash means the Braves, if nothing happens, will have a DEBT of $6.5M...
If left alone until 2006, this means, in order to break even, the payroll needs to drop down to $67M---cutting nearly $50M in salary, before Opening Day.
This season is about 23.5% complete...meaning with a payroll of $116M, a little more than $27M should have been spent---which is correct according to the financial page. So for the remaining 76.5% of the season, in order to just break even and lose all of the available cash (all 36M of it) at the end of this season, the team needs to spend $82M for the rest of the season, which is equivalent to a payroll of $107.2M. That means $9M of payroll has to be removed NOW, just to break even this season. The deeper into the season payroll changes aren't made, the bigger the changes need to be in order to realize any money for 2006.
How will this be addressed for future purposes??