Luxury Tax Calculation Incorrect?

Mantush · 08-19-2021, 05:29 AM

It's 2024 in my league. Game is set to have luxury tax revenue sharing with a 25% tax on a soft cap of 170% league average.

League Average Payroll is $136,200,000.
170% Above Average (Soft Cap): $231,540,000.

Dodgers Payroll = $314,075,000.
Dodgers Amount Over Soft Cap = $82,535,000

OOTP Dodgers Revenue Share = $28
What I think revenue share should be: (82,535,000 * .25) = -$20,633,750.

Am I missing something? I don't understand how the Dodgers are receiving revenue sharing money. This has downstream impacts where Rangers and Tigers (29th and 30th ranked payrolls) both only received $650,000 in revenue sharing.

Mantush · 08-20-2021, 11:01 AM

Can anyone help with this? Is there a setting I need to change to have revenue share work like I’m describing? Or am I off-base with that being how it works in the game / life?

Matt Arnold · 08-20-2021, 11:51 AM

These numbers were all taken after the season? The luxury tax payout and redistribution only happens when the games moves to the off-season.

If you have the league file, ideally from before it went to the off-season, that would be helpful for us to see what the exact distribution in your league is. Otherwise we can certainly have a look to see if there may be any issues around with it.

Baconi · 08-20-2021, 12:14 PM

I kinda wish there was a dedicated luxury tax page so we could see the calculations, right now I think you can only find the net change from the tax in accounting.

NoOne · 08-20-2021, 02:30 PM

Quote:

Originally Posted by Baconi

I kinda wish there was a dedicated luxury tax page so we could see the calculations, right now I think you can only find the net change from the tax in accounting.

financials report has info on it per team in a list at bottom.

accounting page, like you said..

timing is key... only useful if after a completed season and for that previous season. you'd have to take note of that previous year's average team salary when calculating soft cap. minor differences, likely.

it's virtually no deterent for a human. may slightly impact budget calculation? few bucks handed out per team i don't even think they consider it in budget calculations in a direct way, so will only increase chance of carryover cash.

if you intend to use this to redistribute money, it is a poor tool. i've raised it to 250% for a 150% soft cap and it doesn't change spending much. doesn't help poor teams much. if you want it more even, i suggest editing the revenue streams to reduce range of difference between market sizes. or divy more of the pool into revenue streams that aren't based on market size and reduce those by similar amounts to maintain original avg income.

lately i like bumping up merchandise revenue because it is based on results and reducing my local media baseline to even it out. I don't want 'stock car' financials, this kinda blends a little less stratification with more results-rewarded income. i never share gate revenue (also an option for results-orientated rev, if so)! i do the 150/250 soft/penalty for grins, but as i type it out here i need to stop doing that.

still get the rise and fall of a few good teams at any one time, but with greater variety of teams over time. larger markets still correlate to higher win pcts, but not as strongly.

Mantush · 08-20-2021, 05:52 PM

Quote:

Originally Posted by Matt Arnold

These numbers were all taken after the season? The luxury tax payout and redistribution only happens when the games moves to the off-season.

If you have the league file, ideally from before it went to the off-season, that would be helpful for us to see what the exact distribution in your league is. Otherwise we can certainly have a look to see if there may be any issues around with it.

We are in the off-season. It began on November 8 and its November 19th now in-game. The last auto-save was November 1 (I don't know if that helps).

Where would I upload my league files if they would help for you to look at?

Matt Arnold · 08-20-2021, 05:56 PM

https://support.ootpdevelopments.com...p-developments

Torse6294 · 10-24-2022, 06:26 PM

I think the manual is written poorly here. I've labored over this too for many months trying to get the math to work. The calculation is NOT done on the first day of the off-season as written but I think rather it may be done the day before (can't be sure). What I am sure of though, and this ties out, is that when the year flips and the team's accounting screen moves to the current year you can tally up the previous years' spend on players and staff. The soft cap analysis is then accurately calculated off of these figures. It also appears that only the lower half of teams receive the pay-out while the teams that do not trip the tax but are in the upper 50% receive some varying small amounts. More research is needed but I'm nearly there. The manual should be clarified on this point.

08-19-2021, 05:29 AM	#1
Mantush Minors (Double A) Join Date: Oct 2012 Posts: 147	Luxury Tax Calculation Incorrect? It's 2024 in my league. Game is set to have luxury tax revenue sharing with a 25% tax on a soft cap of 170% league average. League Average Payroll is $136,200,000. 170% Above Average (Soft Cap): $231,540,000. Dodgers Payroll = $314,075,000. Dodgers Amount Over Soft Cap = $82,535,000 OOTP Dodgers Revenue Share = $28 What I think revenue share should be: (82,535,000 * .25) = -$20,633,750. Am I missing something? I don't understand how the Dodgers are receiving revenue sharing money. This has downstream impacts where Rangers and Tigers (29th and 30th ranked payrolls) both only received $650,000 in revenue sharing.

08-20-2021, 11:01 AM	#2
Mantush Minors (Double A) Join Date: Oct 2012 Posts: 147	Can anyone help with this? Is there a setting I need to change to have revenue share work like I’m describing? Or am I off-base with that being how it works in the game / life?

08-20-2021, 11:51 AM	#3
Matt Arnold OOTP Developer Join Date: Jun 2009 Location: Here and there Posts: 15,674	These numbers were all taken after the season? The luxury tax payout and redistribution only happens when the games moves to the off-season. If you have the league file, ideally from before it went to the off-season, that would be helpful for us to see what the exact distribution in your league is. Otherwise we can certainly have a look to see if there may be any issues around with it.

08-20-2021, 12:14 PM	#4
Baconi Minors (Triple A) Join Date: Oct 2017 Location: Pittsburgh, PA Posts: 206	I kinda wish there was a dedicated luxury tax page so we could see the calculations, right now I think you can only find the net change from the tax in accounting.

08-20-2021, 05:56 PM	#7
Matt Arnold OOTP Developer Join Date: Jun 2009 Location: Here and there Posts: 15,674	https://support.ootpdevelopments.com...p-developments

10-24-2022, 06:26 PM	#8
Torse6294 Bat Boy Join Date: Oct 2018 Posts: 10	I think the manual is written poorly here. I've labored over this too for many months trying to get the math to work. The calculation is NOT done on the first day of the off-season as written but I think rather it may be done the day before (can't be sure). What I am sure of though, and this ties out, is that when the year flips and the team's accounting screen moves to the current year you can tally up the previous years' spend on players and staff. The soft cap analysis is then accurately calculated off of these figures. It also appears that only the lower half of teams receive the pay-out while the teams that do not trip the tax but are in the upper 50% receive some varying small amounts. More research is needed but I'm nearly there. The manual should be clarified on this point.