FAQ: Team Revenue and Cash Levels

[jonnymo]

... I was wondering what determines the budget? And if most teams don't follow the budget, what good is it?

PB = R(P) - FS&M

where

PB = Payroll Budget
R(P) = Projected Revenue
FS&M = Farm, Scouting, and Medical Budget

You can see this at the beginning of each season, but it's not so obvious as the season goes on and budget numbers change. (For example, if I budget $6M for Scouting in April, then bump that up by $3M on May 1, my Scouting budget for the year will be $8.5M.)

Your second question may be rhetorical, but I'll give it a shot. PB is a simple benchmark to give you an idea of what you can spend. As the season goes on and you get a better idea of what your revenue/profit numbers will be, you can figure out what your expenses should be without this. Any team that spends well over its PB has to have the cash reserves to cover the difference. Make sense?

[henry296]

Thanks for the update.

I am in the offseason of 2014 and my payroll budget $29.9 million. However, my projected revenue is 71.6. I am currently spending 9 million on Farm, 9 million on Scouting and 6 million on Medical. Using the formula above my budget should be about 47.6 million instead of 29.9 million.

Todd

[forbes]

I agree the building stadiums option is broken. There should be a way to save money to build a stadium (ie put it in a savings account that can't be touched) or some other ability to pay over time. Having my attendance drop because of my cash level just seems dumb. If my team sucks and my cash level is high, i can understand. But if my team is great and my cash level is high, fans should still be coming to see my team. Additionally, free agents asking more because of my cash level is high (because I am saving for a new stadium) is also a problem.