Money For Extensions

MrMoose · 04-08-2018, 10:33 PM

This is driving me nuts...I'm not understanding how the $$$ for extensions works. Example from my current season: On 7/2, prior to a multi-player trade I initiated, Front Office showed my $ for extensions at 377K. Made the trade, a 1-for-2 trade plus I got 750K in cash; players were roughly "contract equal." My extensions $ jumped to 1.78M! How? I have no idea!

Then on 7/11, a FA that I signed to a MiLB contract, promoted to my active roster to cover a player with a nagging DtD injury, sent a personal message re: an extension. Reasonable and figuring I have 1.78M available, why not explore now? Well, somehow my extensions $ is now magically NONE! Huh? How does it drop 1.78M with NO other actions taken between 7/2 & 7/11?

Can someone please explain how these calculations are actually being done so that I can better understand the ramifications of player moves I make? As it stands, it appears to me to be completely random...although my intuition says it's not...or is it?

Oh, and I should have mentioned that I've seen this same behavior in both games I'm currently playing.

Thanks in advance for any enlightenment anyone can provide!

South-Side · 07-06-2018, 02:52 AM

I'm having the same issue, at the beginning of the season I've had 5 mil for extensions, somehow by the end of April it got down 2.7 mil. I've made no extensions and only one small trade (same salary, contracts ending at the same time, in one year) in this period. Now I am at the end of May and it is down to 1.2 mil. How does this work, I'm only a few months into the season and the money for extensions is already almost gone..

Timofmars · 07-06-2018, 05:19 AM

My guess is that the extensions budget depends on something like the estimated profit/loss for the year the extension is for. So if revenue estimates had decreased compared to what they were originally, perhaps due to falling fan interest or a ticket price change, extensions budget may fall too. Try adjusting your ticket price to see if it results in a sudden boost in revenue estimates and thus extension budget.

Also, I don't think cash counts. I guess the idea is thst the owner is looking for a sustainable level of contract expenses, rather than allowing temporary cash on hand be used for long term expenses. So you may get a higher extensions budget if you trade a player away, even if you give away cash in the trade of the same amount as the player's yearly salary.

MrMoose · 07-08-2018, 05:09 PM

Thanks, TimOfMars, for your thoughts on what may be happening with extensions $$$. However, now that you mention cash, you hit another sore point with me!

Seems that the OOTP financial model violates basic Accounting 101 principles: Cash IS an asset and is typically acquired via revenue streams. As such, and being a liquid asset, it should be available for use against any expenses, current or future, as I so choose!

If I can only build up a cash "account" (via trading) and I can never spend it on anything, of what value is it to me? Absolutely none!!!

Orcin · 07-08-2018, 05:38 PM

Quote:

Originally Posted by MrMoose

Seems that the OOTP financial model violates basic Accounting 101 principles: Cash IS an asset and is typically acquired via revenue streams. As such, and being a liquid asset, it should be available for use against any expenses, current or future, as I so choose!

Accounting rules say nothing about how an asset is to be used. They define how an asset is to be classified on the balance sheet. The use is determined by management. In OOTP, management is the owner, not the General Manager.

Timofmars · 07-09-2018, 01:35 AM

You can use cash on anything except extensions. So if it's the offseason and the budgets for scouting and draft bonuss, etc. Haven't been locked in, you could actually set them lower and have more extension money temporarily.

Trauma One · 07-11-2018, 04:08 PM

Money for extensions pays attention to your +1 year salaries / payroll on the debit side and I'm not sure on the credit side if it's current budget or estimated revenues.

I haven't watched for this myself but my guess is that your arbitration estimate costs went up during that month. i.e. you had a player or players that are playing well and now their arbitration cost for next year is higher.

Also, when you add someone to the 40 man you add 535k to this year as well as subsequent year payroll.

04-08-2018, 10:33 PM	#1
MrMoose Bat Boy Join Date: Mar 2018 Posts: 13 Thanks: 4 Thanked 0x in 0 posts	Money For Extensions This is driving me nuts...I'm not understanding how the $$$ for extensions works. Example from my current season: On 7/2, prior to a multi-player trade I initiated, Front Office showed my $ for extensions at 377K. Made the trade, a 1-for-2 trade plus I got 750K in cash; players were roughly "contract equal." My extensions $ jumped to 1.78M! How? I have no idea! Then on 7/11, a FA that I signed to a MiLB contract, promoted to my active roster to cover a player with a nagging DtD injury, sent a personal message re: an extension. Reasonable and figuring I have 1.78M available, why not explore now? Well, somehow my extensions $ is now magically NONE! Huh? How does it drop 1.78M with NO other actions taken between 7/2 & 7/11? Can someone please explain how these calculations are actually being done so that I can better understand the ramifications of player moves I make? As it stands, it appears to me to be completely random...although my intuition says it's not...or is it? Oh, and I should have mentioned that I've seen this same behavior in both games I'm currently playing. Thanks in advance for any enlightenment anyone can provide! Last edited by MrMoose; 04-08-2018 at 10:34 PM.

07-08-2018, 05:09 PM	#4
MrMoose Bat Boy Join Date: Mar 2018 Posts: 13 Thanks: 4 Thanked 0x in 0 posts	Now That You Mention Cash... Thanks, TimOfMars, for your thoughts on what may be happening with extensions $$$. However, now that you mention cash, you hit another sore point with me! Seems that the OOTP financial model violates basic Accounting 101 principles: Cash IS an asset and is typically acquired via revenue streams. As such, and being a liquid asset, it should be available for use against any expenses, current or future, as I so choose! If I can only build up a cash "account" (via trading) and I can never spend it on anything, of what value is it to me? Absolutely none!!!

07-06-2018, 02:52 AM	#2
South-Side Bat Boy Join Date: May 2018 Posts: 12 Thanks: 5 Thanked 1x in 1 post	I'm having the same issue, at the beginning of the season I've had 5 mil for extensions, somehow by the end of April it got down 2.7 mil. I've made no extensions and only one small trade (same salary, contracts ending at the same time, in one year) in this period. Now I am at the end of May and it is down to 1.2 mil. How does this work, I'm only a few months into the season and the money for extensions is already almost gone..

07-06-2018, 05:19 AM	#3
Timofmars Minors (Double A) Join Date: Feb 2018 Posts: 170 Thanks: 64 Thanked 56x in 40 posts	My guess is that the extensions budget depends on something like the estimated profit/loss for the year the extension is for. So if revenue estimates had decreased compared to what they were originally, perhaps due to falling fan interest or a ticket price change, extensions budget may fall too. Try adjusting your ticket price to see if it results in a sudden boost in revenue estimates and thus extension budget. Also, I don't think cash counts. I guess the idea is thst the owner is looking for a sustainable level of contract expenses, rather than allowing temporary cash on hand be used for long term expenses. So you may get a higher extensions budget if you trade a player away, even if you give away cash in the trade of the same amount as the player's yearly salary.

07-09-2018, 01:35 AM	#6
Timofmars Minors (Double A) Join Date: Feb 2018 Posts: 170 Thanks: 64 Thanked 56x in 40 posts	You can use cash on anything except extensions. So if it's the offseason and the budgets for scouting and draft bonuss, etc. Haven't been locked in, you could actually set them lower and have more extension money temporarily.

07-11-2018, 04:08 PM	#7
Trauma One Minors (Rookie Ball) Join Date: Apr 2018 Posts: 30 Thanks: 47 Thanked 11x in 7 posts	Money for extensions pays attention to your +1 year salaries / payroll on the debit side and I'm not sure on the credit side if it's current budget or estimated revenues. I haven't watched for this myself but my guess is that your arbitration estimate costs went up during that month. i.e. you had a player or players that are playing well and now their arbitration cost for next year is higher. Also, when you add someone to the 40 man you add 535k to this year as well as subsequent year payroll.