2017 PEBA financial and performance-based adjustments

[John]

After the conclusion of the playoffs, a handful of adjustments are made to select teams' Fan Interest, Fan Loyalty and/or Market Size. These adjustments are related to a variety of factors, including profitability (or lack thereof), current-year vs. historical performance, and more. The time has come to announce the 2017 end-of-season adjustments. You will see these changes reflected after our next sim.

Fan Interest penalties
League rules require teams to make strides towards profitability. There are two circumstances which can trigger financial-related Fan Interest penalties:

1. Losses beyond -$25,000,000 are erased upon the end of a season, but there is a penalty to fan interest for every $5M below -$25M a team ends a season with.
2. The first time a team ends a season in the red, the team goes "on watch." Until the team finishes a season in the black, the team will suffer a fan interest penalty at the conclusion of every subsequent year in which it:
   1. Remains in the red, AND;
   2. Fails to make progress towards break-even cash on hand.

In 2017, the following teams met at least one of the above criteria and will be assessed a Fan Interest penalty that is reflected in our current league file:

• Aurora
• San Antonio

The following teams are "on watch" and must make progress towards break-even cash on hand in order to avoid Fan Interest penalties in subsequent years:

• Arlington
• Canton
• Charleston
• Connecticut
• Crystal Lake

Performance-based Adjustments
Teams are evaluated in a number of different areas related to on-the-field performance. All evaluative criteria are examined over a one, three and six-year period, with greatest weight placed on three-year performance. Team data is entered into a custom formula that generates a percent chance for Fan Loyalty and Market Size gain/loss for each team. While many teams will have only a chance to gain or lose ground, some teams may have a chance for both, while others may have no chance to change whatsoever.

Once the percentages are generated, a roll is made against the gain/loss chances for each team; one roll each for Fan Loyalty and Market Size. A "failed" roll is one that is within the percentage chance for loss, while a "passed" roll is one that is within the percentage chance for gain. Whenever a roll fails or passes, there will be a one-level adjustment down/up in the applicable area for that team. Because Fan Loyalty and Market Size each get their own roll, it is possible for a team to experience a drop in one area and a gain in another.

The system is designed to produce a modest number of changes per year (it may produce no changes in some years). There is also protection against rapid changes. A minimum of two seasons must pass between fan loyalty changes and a minimum of three seasons must pass between market size changes. Finally, winning the Planetary Extreme Championship grants you exemption from Fan Loyalty/Market Size drops for three seasons.

Performance-based adjustments are completely independent of OOTP adjustments. It is entirely possible for a team to receive a Fan Loyalty/Market Size increase/decrease from both OOTP and performance-based adjustments in the same season. OOTP-generated status changes do not preclude performance-based adjustments under any circumstances.

In 2017, the following teams experienced performance-based Fan Loyalty/Market Size adjustments that will be reflected in our next sim:

• Canton: Fan Loyalty DROPS to "Average"
• Fargo: Market Size INCREASES to "Big"
• Kalamazoo: Market Size DROPS to "Above Avg."
• New Jersey: Fan Loyalty INCREASES to "Great"
• New Jersey: Market Size INCREASES to "HUGE"
• Tempe: Market Size INCREASES to "Tiny"

[Hitmen]

In 2017, the following teams experienced performance-based Fan Loyalty/Market Size adjustments that will be reflected in our next sim:

• Canton: Fan Loyalty DROPS to "Average"
• Fargo: Market Size INCREASES to "Big"
• Kalamazoo: Market Size DROPS to "Above Avg."
• New Jersey: Fan Loyalty INCREASES to "Great"
• New Jersey: Market Size INCREASES to "HUGE"
• Tempe: Market Size INCREASES to "Tiny"

Mmmmm yes, yes. Good time to be a New Jersey fan. Yes indeed. Now if only we could deliver!

[Dinosaurs]

In 2017, the following teams experienced performance-based Fan Loyalty/Market Size adjustments that will be reflected in our next sim:

• Canton: Fan Loyalty DROPS to "Average"
• Fargo: Market Size INCREASES to "Big"
• Kalamazoo: Market Size DROPS to "Above Avg."
• New Jersey: Fan Loyalty INCREASES to "Great"
• New Jersey: Market Size INCREASES to "HUGE"
• Tempe: Market Size INCREASES to "Tiny"

Mmmmm yes, yes. Good time to be a New Jersey fan. Yes indeed. Now if only we could deliver!

The local economy must have been booming in Fargo over the past few years. It was a pretty mediocre market size when the league started....perhaps the abundance of manufacturing jobs in North Dakota has finally offset the "chilly" weather associated with the state.

[Matt]

• Tempe: Market Size INCREASES to "Tiny"

I see this one and I can only think of going to the paint store and trying to choose a shade of white.

[John]

The local economy must have been booming in Fargo over the past few years. It was a pretty mediocre market size when the league started....perhaps the abundance of manufacturing jobs in North Dakota has finally offset the "chilly" weather associated with the state.

Consider the role you have played in energizing the North Dakota economy, Cristian.

[Alan Ehlers]

• Tempe: Market Size INCREASES to "Tiny"

I see this one and I can only think of going to the paint store and trying to choose a shade of white.

Hey, that extra $500k in media revenue nets us another league minimum player. Watch out Sovereign League, we're ball'in now!

[John]

Hey, that extra $500k in media revenue nets us another league minimum player. Watch out Sovereign League, we're ball'in now!

In all seriousness, I let out a whoop of joy when I realized that the dice had come up winners for Tempe. What you've done in so short a time and with such scant resources is nothing less than remarkable, Alan. Chris Van Hauter is a fool if he sticks to the letter of his ultimatum.