Extension Money - Use it or lose it each year?

[showbusiness77]

Hello,

Have a question about my extension budget.
I still have a small amount left - $2.8M and I'm in the middle of the playoffs. I have a couple players I want to resign to small extensions and I know I can get them to agree to a favorable amount.

If I don't use this $2.8M does it end up going to my offseason free agency budget?

Or is the budget once free agency starts totally new calculated value and won't include this money? Hence I will lose it?

If my free agency money isn't going to accrue by this exact amount then I want to go ahead and use it.

Thanks for any guidance or answers!

-D

[EZB]

Originally Posted by showbusiness77

Hello,

Have a question about my extension budget.
I still have a small amount left - $2.8M and I'm in the middle of the playoffs. I have a couple players I want to resign to small extensions and I know I can get them to agree to a favorable amount.

If I don't use this $2.8M does it end up going to my offseason free agency budget?

Or is the budget once free agency starts totally new calculated value and won't include this money? Hence I will lose it?

If my free agency money isn't going to accrue by this exact amount then I want to go ahead and use it.

Thanks for any guidance or answers!

-D

Your question doesn't have an specific answer, but I can explain how finances work. Some of this may be remedial, but its important to set level properly:


You have revenues and expenditures each year projected from some guesses. Your projected expenditures are very accurate, but some of maximums (e.g., draft budget), while others are known already and final. Then you have some cash you started with, which could have come from previous-year profit that the owner didn't take for himself. You could also have money given to you from the owner. Depending on settings, you may have access to all these sources of revenues or simply only the budget allowed by your owner.


Throughout the year, there are re-evaluation points where your current budget and projected-year budgets will be redone. So if you start selling tickets like mad, you may see your budget go up this year and really up next year. However, you could also have reductions in projected budgets and revenues if you fail to bring in fans.


Your money available for free agents is whatever money is left over in THIS YEAR'S budget. It could have been draft budget that went unused, or just excess revenues without expenses. Money available for extensions is in NEXT YEAR'S budget.