OOTP Developments Forums - View Single Post - Looking for clarification on soft cap, luxury tax, cash max

hefalumps · 08-06-2008, 03:05 PM

Hi everyone,

I'm about to move into my first "offseason" in OOTP9 after converting a league from OOTP 2007/8. I converted my OOTP8 league after awards were given out the previous year (and so the offseason was already underway), and so I haven't used OOTP9's new financial model in determining budget for the next season.

Right now I have a luxury tax of 20% and a soft cap of 120%. From what I understand, that means if my payroll is greater than 120% of the league average, I have to pay a luxury tax of 20% of my current earnings into the revenue sharing pool. Assuming I understand that correctly, that makes plenty of sense.

However, I still have a cash max set, since OOTP 2007/8's revenue sharing model just took any cash over the max and dumped it into the revenue sharing pool. Do I still need a cash max anymore, or does the new soft cap/luxury tax setting take care of it all?

Here's my exact example. I have the highest payroll in the league, so I'll be paying the tax. Here are my numbers:

Payroll: $13,871,256
Average: $8,780,861
Soft Cap: $10,537,033 (120% * Average)
Amount over Soft Cap: $3,334,223 (Payroll - Soft Cap)

Okay - now when I look at my season profit/loss, I've made $4,948,459 this year added to my $1,178,300 cash balance from last year (which is my cash max) and I have a current balance of $6,126,759. So...

Balance: $6,126,759
Luxury Tax: $1,225,352 (20% * Balance)
Remaining Cash for Next Year: $4,901,407

Now, it's my understanding that the luxury tax gets paid into a revenue sharing pool. Is that correct? Or does it basically just "disappear" or get paid to the league?

And since I still have a cash max set, what's going to happen to the $3 million I have over my cash max? Does that get sent to revenue sharing as well, so I'll basically only carry over whatever my cash max is set to?

I'm just looking to get a better understanding of the system before I proceed. Do both Luxury Tax payments and Cash Max overages get put into revenue sharing? Can anyone help?

Thanks!

08-06-2008, 03:05 PM	#1 (permalink)
hefalumps Major Leagues Join Date: Mar 2003 Posts: 440	Looking for clarification on soft cap, luxury tax, cash max Hi everyone, I'm about to move into my first "offseason" in OOTP9 after converting a league from OOTP 2007/8. I converted my OOTP8 league after awards were given out the previous year (and so the offseason was already underway), and so I haven't used OOTP9's new financial model in determining budget for the next season. Right now I have a luxury tax of 20% and a soft cap of 120%. From what I understand, that means if my payroll is greater than 120% of the league average, I have to pay a luxury tax of 20% of my current earnings into the revenue sharing pool. Assuming I understand that correctly, that makes plenty of sense. However, I still have a cash max set, since OOTP 2007/8's revenue sharing model just took any cash over the max and dumped it into the revenue sharing pool. Do I still need a cash max anymore, or does the new soft cap/luxury tax setting take care of it all? Here's my exact example. I have the highest payroll in the league, so I'll be paying the tax. Here are my numbers: Payroll: $13,871,256 Average: $8,780,861 Soft Cap: $10,537,033 (120% * Average) Amount over Soft Cap: $3,334,223 (Payroll - Soft Cap) Okay - now when I look at my season profit/loss, I've made $4,948,459 this year added to my $1,178,300 cash balance from last year (which is my cash max) and I have a current balance of $6,126,759. So... Balance: $6,126,759 Luxury Tax: $1,225,352 (20% * Balance) Remaining Cash for Next Year: $4,901,407 Now, it's my understanding that the luxury tax gets paid into a revenue sharing pool. Is that correct? Or does it basically just "disappear" or get paid to the league? And since I still have a cash max set, what's going to happen to the $3 million I have over my cash max? Does that get sent to revenue sharing as well, so I'll basically only carry over whatever my cash max is set to? I'm just looking to get a better understanding of the system before I proceed. Do both Luxury Tax payments and Cash Max overages get put into revenue sharing? Can anyone help? Thanks!