There’s an issue that Nate and I would like to solicit league input on, the cash cap setting. When we started the league, Nate and I agreed that, at a minimum, we did not want a very restrictive cash cap. For whatever reason, now lost to the mists of history, we set the cash cap at $100 million. I don’t recall if we did that because we figured nobody would ever hit it, or what. But, that’s the current setting in the league.
Now, for the first time, we have teams actually approaching that level of cash. A couple teams could easily end 2008 with more than $100 million in cash, depending of course on moves made between now and then, free agent signings, etc. But, Nate and I thought this would be a good time to solicit input on what we should do with the cash cap.
Basics of how it works right now with our settings is that if a team ends the season with more than the $100 million maximum cash allowed, then the excess cash is removed from the team. Because we have revenue sharing turned off, the money is just lost. (If we had revenue sharing turned on, it would be distributed to other teams.) See the game manual here for an explanation.
So, what should the league do? We can do almost anything – keep the cap, raise it higher, lower it, turn on revenue sharing, etc.
One side effect of the cash cap that may or may not matter is that it affects salary demands. On some undefined level, the game uses the amount of funds available to sign free agents as a guidepost to determining what players’ demands are. So, the more cash that is available to sign players, the higher the demands are likely to be. And, available cash is one factor that can drive up the amount of funds available to sign free agents.
Now, taking my deputy commissioner’s hat off for a second, my basic thinking on the issue is that the purpose of the game is to win, not make a profit on baseball operations. (I’m sure there’s other games that one can play where the goal is to make profits.) One way to win is to save money when the team is struggling, set it aside, and then use it later to make the team better (resign young players before they walk in free agency, splurge on free agents, etc.). So, I think it’s good to have teams able to build up some cash. But, I’m not sure it’s good to allow teams to accrue cash without limit and I don’t know what the appropriate maximum cash level should be.
I’m sure Nate has his own thoughts on the issue, which are different than mine, and he’ll probably share them. But, we both are really interested in hearing other viewpoints on this issue because, at least to me, there’s no clearly right answer on what the “right” settings are.
Please add your thoughts on the issue as comments to this blog entry or, if you wish privacy, email them to Nate and me. Thanks.
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