Questions About Understanding Finances

[Phillies1119]

I’m still pretty bad at the game and at managing contracts, so now I find myself with a projected balance of -25,000,000, worst in the league. Obviously this can’t be good, but I’m confused as to what it actually means. I’m looking at it in finances report and the balance under the Current Financial Review is at $113,000,000. Why is this balance so high yet my projected balance is so bad? What’s the difference?

Also, what are some ways I can get my balance back in the positives? I’m not very skilled at all in this area as you can probably tell so any tips or tricks for managing the financial aspects of the game would be greatly appreciated. I’m eager to learn them.

[hfield007]

I'll star with I can be completely wrong cause I am forgetful lol.

your current balance i think is just your budget the owner set for the year, ie. how much money youre allowed, and current balance will be that minus all of your expenditures.

Your projected balance with your current seasons money youre making i believe will impact next year's budget.

But even if i'm wrong there, is your owner tight fisted? Check how your owner is he might not be willing to spend on the team and just eat the profits himself.

[Phillies1119]

Originally Posted by hfield007

I'll star with I can be completely wrong cause I am forgetful lol.

your current balance i think is just your budget the owner set for the year, ie. how much money youre allowed, and current balance will be that minus all of your expenditures.

Your projected balance with your current seasons money youre making i believe will impact next year's budget.

But even if i'm wrong there, is your owner tight fisted? Check how your owner is he might not be willing to spend on the team and just eat the profits himself.

Thank you for the response. I don’t believe it has anything to do with the owner because his fiscal personality is generous.

I think it more has to do with me signing two big contracts in the offseason, but I’m just at a loss as to what any of the financial numbers mean. I know I have to wait for some guys to come off the books to get money freed up, but am unsure as to any other effective ways of positively influencing my budget. It’s mainly because I’m inexperienced haha

[pgjocki]

Can you screenshot your finances page? What are you paying for scouting and player development? What's your budget for the draft?

Be careful of guys hitting arbitration because they will go from very cheap to expensive and catch you off guard.

Sent from my SM-G950U using Tapatalk

[Matt Arnold]

Current balance early on is often very positive, because some revenues are paid "up front", namely season tickets and media revenues.

But as you play out the season, you pay more in salaries than you bring in from remaining ticket sales and merchandising, so that number will fall over time, often to around what the projected value ends up being.

Now, it won't always. For example, if you sell more tickets than expected, that can gain money. Or if you make the playoffs, that can be another big chunk of revenue too.

If you don't want to rely on that, then you can cut expenses. Trading away high cost players is one, or sometimes you can reduce your scouting, development, or drafting budgets too.

Or don't, and hope your generous owner covers the shortfalls and doesn't get mad

[Phillies1119]

Originally Posted by pgjocki

Can you screenshot your finances page? What are you paying for scouting and player development? What's your budget for the draft?

Be careful of guys hitting arbitration because they will go from very cheap to expensive and catch you off guard.

Sent from my SM-G950U using Tapatalk

Once I get off from work tonight I will take a screen shot. I do believe my scouting and player development budgets might be maxed so that is certainly something that I should address.

[Phillies1119]

Originally Posted by Matt Arnold

Current balance early on is often very positive, because some revenues are paid "up front", namely season tickets and media revenues.

But as you play out the season, you pay more in salaries than you bring in from remaining ticket sales and merchandising, so that number will fall over time, often to around what the projected value ends up being.

Now, it won't always. For example, if you sell more tickets than expected, that can gain money. Or if you make the playoffs, that can be another big chunk of revenue too.

If you don't want to rely on that, then you can cut expenses. Trading away high cost players is one, or sometimes you can reduce your scouting, development, or drafting budgets too.

Or don't, and hope your generous owner covers the shortfalls and doesn't get mad

Huh, so it’s that simple. Thanks a lot, this really helped.

[TheEquinox]

Doesn't the projected balance also factor in the salaries for next season? Like if you signed big names who will earn a lot more in the following season according to their contracts, that could also be an issue.