2012 PEBA financial and performance-based adjustments

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John
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2012 PEBA financial and performance-based adjustments

#1 Post by John »

Each year, shortly after the conclusion of the playoffs, a handful of adjustments will be made to select teams' Fan Interest, Fan Loyalty and/or Market Size. These adjustments are related either to a sustained lack of profitability (for Fan Interest) or to teams' performance in a variety of sectors over a range of time (for Fan Loyalty and Market Size). The time has come to announce the 2012 end-of-season adjustments. You will see these adjustments reflected after our next sim. We'll begin with Fan Interest penalties for sustained unprofitability.

Sustained Unprofitability 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 $2.5M 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 2012, the following teams met one or both of the above criteria and will be assessed Fan Interest penalties:
  • Kalamazoo
  • Palm Springs
  • 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:
  • Canton
  • Connecticut
  • Duluth
  • New Jersey
  • New Orleans
  • Tempe
Performance-based Adjustments
Teams are evaluated in a number of different areas related to on-the-field performance, including (but not limited to) won-lost record, attendance, revenue and expenses. 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 relatively small number of changes per year (in fact, it may produce no changes in some years). There is also protection built-in against rapid changes. A minimum of two years must pass between fan loyalty changes, and a minimum of three years must pass between market size changes. Finally, winning the Planetary Extreme Championship grants you exemption from Fan Loyalty/Market Size drops for the next three years.

In 2012, the following teams experienced performance-based Fan Loyalty/Market Size adjustments:
  • Bakersfield: Market Size INCREASES to "ASTRONOMICAL"
  • New Jersey: Fan Loyalty DROPS to "Very Good"
  • New Jersey: Market Size INCREASES to "Very Big"
  • Yuma: Fan Loyalty DROPS to "Above Average"
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Re: 2012 PEBA financial and performance-based adjustments

#2 Post by Hitmen »

Looks like I had the most changes :lol: :eek: Not sure whether to be happy or sad. A bigger market should help me in the long run make more money. But sucks to lose some loyalty since I am not "winning" yet my attendance will be more chaotic I guess now.
OOTP Manual wrote:Fan Loyalty = Describes how loyal your fans are. Loyal fans mean better and more consistent attendance, even when your team isn't performing well.
At least I avoided the fan interest penalties this year which hammered me massively at the end of last year ;-D

Speaking of which, the manual doesn't really state much at all about the effects of the market size, anyone want to help me out here with what I can expect?
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Re: 2012 PEBA financial and performance-based adjustments

#3 Post by John »

Market size has an impact on a team's leverage when it comes time to negotiate a new media contract with local broadcasters. Bigger market teams can expect to extract larger broadcast rights fees. Given New Jersey's unlikely gain/loss, it would seem that ratings for Hitmen broadcasts are up, but fans aren't so eager to turn out at Mercer County Waterfront Park until they see a winner. Front-runners. %-6
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Re: 2012 PEBA financial and performance-based adjustments

#4 Post by klewis »

Market size judges the team's value in able to draw in television ratings and the such. Think of baseball teams like TV networks such as CBS, NBC, FOX, ABC, and the WB. The WB probably has a smaller market share but its fan loyalty is quite high.
Last edited by klewis on Wed Sep 15, 2010 11:18 pm, edited 1 time in total.
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Re: 2012 PEBA financial and performance-based adjustments

#5 Post by John »

Featherheads wrote:Market size = size of media contract. Rather big will net you $29 million as opposed to your existing $26 million.
Way to go and take all the mystique out of it! You need to go to the "Rodriguez School of Creative Non-answers", Kevin. :P
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Re: 2012 PEBA financial and performance-based adjustments

#6 Post by Hitmen »

PEBA Commissioner wrote:
Featherheads wrote:Market size = size of media contract. Rather big will net you $29 million as opposed to your existing $26 million.
Way to go and take all the mystique out of it! You need to go to the "Rodriguez School of Creative Non-answers", Kevin. :P
Lol, that's my fault. I was bugging him on instant messenger to explain it to me. :oops:
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Re: 2012 PEBA financial and performance-based adjustments

#7 Post by klewis »

PEBA Commissioner wrote:
Featherheads wrote:Market size = size of media contract. Rather big will net you $29 million as opposed to your existing $26 million.
Way to go and take all the mystique out of it! You need to go to the "Rodriguez School of Creative Non-answers", Kevin. :P
Haha, sorry. I'll be more ambiguous next time.
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Re: 2012 PEBA financial and performance-based adjustments

#8 Post by Lions »

Bumper sticker on a car at work:
Give me ambiguity, or give me something else.
Sounds like I'll be off the "on watch" list if I turn a profit this coming season, eh? Shouldn't be too hard to do that. To do that and win some games might take a little more effort...
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Re: 2012 PEBA financial and performance-based adjustments

#9 Post by John »

Nutmeggers wrote:Sounds like I'll be off the "on watch" list if I turn a profit this coming season, eh? Shouldn't be too hard to do that. To do that and win some games might take a little more effort...
My experience is that the winning part tends to follow pretty closely behind the getting the financial house in order part. :grin:
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Re: 2012 PEBA financial and performance-based adjustments

#10 Post by Matt »

I don't really know where you could have gone with my fan interest. It was 1. That's pretty much akin to "What, their still here?"

By all rights, I probably should have been spanked in the Loyalty department, and there would have been no complaint here. Last year was an unmitigated disaster.
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Re: 2012 PEBA financial and performance-based adjustments

#11 Post by klewis »

Calzones wrote:I don't really know where you could have gone with my fan interest. It was 1. That's pretty much akin to "What, their still here?"

By all rights, I probably should have been spanked in the Loyalty department, and there would have been no complaint here. Last year was an unmitigated disaster.
Hey, I'm sure SA has loyal supporters. They're always interested to see what their GM does next. I know I am.

I'm gonna break the ambiguity here again but fan interest can go below 1. You just can't see it... same as fan interest being able to go above 100 (John is not online so I can say what I want)!
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Re: 2012 PEBA financial and performance-based adjustments

#12 Post by Borealis »

Hitmen wrote:
PEBA Commissioner wrote:
Featherheads wrote:Market size = size of media contract. Rather big will net you $29 million as opposed to your existing $26 million.
Way to go and take all the mystique out of it! You need to go to the "Rodriguez School of Creative Non-answers", Kevin. :P
Lol, that's my fault. I was bugging him on instant messenger to explain it to me. :oops:
So what does Bakersfield's Astronomical rating net them? A trillion?

So how does the Market size-media contract breakdown? When do you see the change in the media contract figures?
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Re: 2012 PEBA financial and performance-based adjustments

#13 Post by Matt »

Well, my market size went down a notch in the game, and the media contract immediately fell 3 mil.

As for how fast those adjustments happen with the out of game adjustments, I guess we will see tonight.
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Re: 2012 PEBA financial and performance-based adjustments

#14 Post by John »

Featherheads wrote:I'm gonna break the ambiguity here...
No more breaking ambiguity! I'm no fan of ever discussing the nuts and bolts of OOTP. Don't expose the gears behind the machine; allow for suspension of disbelief! :shake:
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Re: 2012 PEBA financial and performance-based adjustments

#15 Post by Matt »

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