Current time: 07-18-2019, 12:47 AM

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yep; unless it's a flags fly forever thing but even then i'd wait till nearer the deadline if possible to see if any better pitching options were available
17 Jul 08:55
17 Jul 07:32
id keep the cheap albies
17 Jul 07:09
Should I trade $5 Albies for $2 (Domingo) German or $16 Hendricks? I'm debating German now that - with Nate Lowe up - the team has so many Infielders I have to put one equal or > than Ohtani or Lowe at U.
17 Jul 03:53
Question to the MLB crew (and those who know MLB fantasy enough), 6x6 keeper roto lg (w/ ops/holds added):
17 Jul 03:53
Totally kidding of course Smile
17 Jul 03:36
Same thing lol
17 Jul 03:35
I’m italian, not European ?
17 Jul 03:34
Ahhh, gotcha. That makes too much sense and makes me feel foolish, lol.
17 Jul 03:31
17 Jul 03:30
It’s European
17 Jul 03:29
Alright, I added the 14.2 anyway. The use of commas was just unclear.
17 Jul 03:24
17 Jul 03:24
Right. Is that 13.2M or 13,2-years? Still not clear?
17 Jul 03:20
It was 13,2.
17 Jul 03:18
*The poster
17 Jul 03:04
I can't tell if that Hood bid was 13.2 or 13, 2-years. Free poster used commas instead of periods, so I assume it's 13. If not, I'll edit it to 14.2.
17 Jul 03:04
General NFLC reminder to post your contracts within 48 hours or the player opens up. Being lenient on this first ones as they involve new league members. Have until tomorrow to post before I give second-place bidder the option.
17 Jul 01:47
on fantrax
17 Jul 00:12
in TMW
17 Jul 00:12

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Finance 101
Golden Rule

It is the salary cap and the extension costs which are the driver of parity in our league (as opposed to keeper limits or other constraints). If you imagine that the money is real in any trade you make you won't go too far wrong.

Current Season

There are 3 ways you can spend your $125m in cap.

(1) Signing Bonuses: For undrafted and released prospects. Each team gets a separate $3m pool; after this is used teams can give bonuses using their main cap. Saving a large amount (over $10m) past the initial wave of free agency probably isn't all that useful.

There is a 20% discount if starting a thread from April 1st onward; therefore PC+200k (500k total) nets you a 100k discount and every increment of 500k added (PC+700k, PC+1.2m etc.) saves you 100k more. Hence PC+600k is a pointless bid if you started the thread as PC+700K will have the same net cost (800k) but drives the price up more for opposing bids.

(2) Major League Salaries: Either signed in free agency (which should be used to supplement rather than build your team due to the higher costs) or taken on in trades. Free agents can be useful additions if a team proactively plans for the costs of releasing or buying out the deal due to injury and/or under-performance (more details below).

In trades it is common to pay money on a player in the current season so that the cap affect of the deal is even for both teams. 

Example: $10m starting pitcher ($5m paid) for $5m outfielder

If one team takes on salary in the current year then they are expected to benefit in some other way (receive the better player, or gain a commensurate prospect/draft pick).

(3) Buyouts: Paying off future years of a contract, see the releasing players thread for full details, more information is presented below also.

Tips for managing your cap in the current season

(1) If you release a major league contract then you will need cap room to replace that player on your roster. At least $2m is a sensible amount to hold back for in-season free agency to facilitate this as well as improving your team, though up to $5m may be needed by teams with more roster questions. Breakout players and former stars who are released will likely require larger outlays but availability is near impossible to predict.

(2) It is good practice to withhold some cap space should you need to buy-out any of your contracts. After the free agent deadline a 10m, 10m, 10m deal would require an additional $7.5m in cap space to wipe from your books. If you only had $6m then you could use this and then put $1.5m into the next season. Obviously every team is different with regard to the potential for 'underwater' contracts. 

(3) You may also seek out teams with cap space and incentivize them to take on a bad contract and buy it out on your behalf. $10m in dead money will cost a draft pick in the late first round to early second round range or a player/prospect equivalent.

If you wanted to buy-out a contract without future cap hits but didn't have quite enough money then you could clear some room by (a) sending an expiring deal to another team or (b) sending out your bad contract and taking back one with a smaller buyout cost in the same trade or from a third team.

Tips for managing your cap in the future seasons

(1) Team control is a very important aspect of this league. The salary cap necessitates that expensive veterans are supplemented on your roster by players still on their 600k PC deals or those extended under the prospect discount system. When acquiring a player via trade you should consider his future impact on your financial flexibility.

(2) You should actively plan for any upcoming extension costs of players you wish to retain as well as leaving buffer room whenever you sign a free agent contract or take on a player via trade. The earlier you perform prospect extensions the cheaper the deal is likely to be for top players; with the downside being less years at the low 600k salary. 

(3) One year deals at 600k or above usually only make sense in the case of veterans you are planning to flip at a later date. A 1m, 1m contract is $1.5m to buy-out at the end of the season should you not wish to keep the player and only $1.7m if you cut him in-season. The penalties are $2m and $1.8m respectively under a one year deal at $2m and keeping the player for a second season will be more expensive (significantly so if he has a good year).

(4) Releasing players can be used to gain additional cap space although obviously some money will remain on your books (you can of course perform a buy out to erase or lessen future cap penalties). It is smart to look ahead and plan for when a player may decline and no longer be worth his contract.

(5) Frontloading deals will cost you more total money if you end up releasing or buying out the player early due to the de-escalating cap hits although the penalties in the later years will obviously be less.

8m, 8m, 4m, 4m released at the end of the first season is $14m to buyout (8m, 4m, 1m, 1m)

4m, 4m, 8m, 8m would be $10m (4m, 2m, 2m, 2m)

However you gain future flexibility due to the lower cost of keeping the player in future seasons as well the minimum amount for extending him now being lower (50% of previous salary). The player will also have greater trade value in the later years should you wish to move him. One strategy is to sign free agents before your team has peaked and frontload the contract so that their cheaper seasons coincide with your contention window opening.

(6) The reverse is true of backloaded deals although they can be useful for teams currently short on cap space. They are most advisable when you have some expiring contracts you aren't planning to extend because if money in future seasons is also tight then you risk ending up with a bad contract that you can't afford to buy-out and would have to significantly incentivize to move via trade.

(7) Teams should be very careful about paying money in future seasons because that money is then gone forever. One situation where it can make sense is the swapping of franchise level players with different salaries so that the cap is even for both teams. 

When in a deep rebuild it is generally ok to pay down the following year on contracts (assuming you are being compensated for doing so). Large payments further in the future should be made with extreme caution, plus there is often no need to pay more than 50% in the 3rd year and 25% in the 4th/5th (the cap hits for releasing the player at the end of the 2nd season). As your prospects graduate and you transition into contention having cap space will allow you to frontload your extensions and potentially acquire good players with large salaries from teams needing to trim salary.

Taking on a player who you plan to release/buy out

Even though receiving any asset for your cap room may seem preferable teams are mandated to receive a protected minimum return. This is to ensure the following:
  • That contracts contain risk
  • Maintaining financial flexibility while competing is rewarded
  • The trading of bad contracts increases rather than decreases parity
To address the final point specifically: A four year flat deal at $10m per season would cost $10m (5m, 2.5m, 2.5m) for the future seasons to be bought out after the free agent deadline (an additional $10m if the current season is sent without any payment). 

This would clear $30m in bad money that could be redirected into player extensions or future free agent signings by the team moving that contract. Any money gained in the current season would have the dual utility of funding any further buyouts and/or signing free agents. 

Having to incentivize sufficiently creates a cost to this reward and transfers valuable assets to a team that is likely undergoing a rebuild. Because i can't compel teams with bad contracts to seek out those with cap space and vice-versa then supply and demand can't be used to set the price. If teams neglect to jettison bad contracts then how much do rebuilders actually lose by missing out on the marginal prospects that may have been offered without a set floor?

One simple way of looking at it is this: Everyone pays the same entry fee and receives $125m to spend. Why should a team gain extra cap space for no material additional outlay? Ultimately why bother with the complexity of a salary based system if the cap isn't an effective equalizer.

As mentioned above, $10m in buyout costs is expected to net at least a late first round/late second round draft pick or a reasonable alternative. $40m would require a top 5 draft pick or a player/prospect equivalent. This is based on a conservative estimate of what these assets would fetch in free agency.

Guideline for TC votes (Buyout cost = Expected compensation)

$40m = Top 5 pick-Top 40 prospect
$20m = Mid 1st round pick-Top 100 prospect
$10m = Late 1st/Early 2nd round pick-Top 180 prospect
$5m = Mid/Late 2nd round pick-Top 300 prospect

Additional Notes

Prospect value = Your determination of a player's consensus rank
Player value = The level of prospect his contract would fetch (free agency prices not used because the deals aren't fully guaranteed)
X% chance buyout not required due to rebound/improvement = X% less return required

Potential benefit in current season to the receiving team of any player likely to be bought out should also be taken into consideration. For example a contending team with cap space may take on a decent player with outsize future cap hits and plan to use them for the remainder of the campaign.

Teams can still acquire prospects that they are personally high on in addition to other assets. Receiving multiple pieces should see an increased return due to roster size limitations.

It is kindly requested that GMs post on the trade block if they are looking to perform buyouts for other teams. Posts on groupme won't be seen by all and in any case can often be missed.
BTL-Twins, BTN-Cards, NP-Rockies

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