Thursday, February 19, 2009

Budgeting 101

Player Payroll:
The amount in this area is used to pay the players salaries. Research is required to help figure out how much is needed. You will need to know how much is needed to resign your ML Free Agents you want to keep, Player Arbitration costs, current payroll and several other costs that are paid from this area. As a rule I use this formula: Current Payroll + Free Agent keepers + Long Term Arbitration keepers/1 year Arbitration keepers + $5M at a minimum. If I plan to dally in the open Free Agent market I add another $10M to $15M depending on how many ML players I may want to go after. The open Free Agent market can be a hit or miss proposition for ML players. You will need to resign minor league Free Agents and open market minor league Free Agents also. One thing to note is some of your minor league Free Agents may want a ML contract, for the most part they aren't worth it.

Prospect Payroll:
This area is used to pay signing bonuses for International Free Agents and Amateur Draft picks. Their salary comes from Player Payroll. Internationals can cost a fortune for a blue chip player and some draft picks also.

Coaches Payroll:
Coaches allow your players to get better at all levels. ML coaches are expensive to replace. You will need to find out which coaches want to return and their cost and how much it might cost to replace others. The Hitting Coach and Pitching Coach are the costliest to replace. Next is a Fielding Instructor. 1B, 3B and Bull Pen Coach are not as costly. Although most Bench Coaches are expensive, there function is minimal at the ML level and as a rule I don't pay a fortune for one unless I have a relatively young team or the previous one wants to stay. Most minor league coaches can be found for about the minimum cost.

Domestic College Scouting Dept:
How much money spent here determines how well and how many college players are scouted in the Amateur Draft.

Domestic High School Scouting Dept:
How much money spent here determines how well and how many High School players are scouted in the Amateur Draft.

International Scouting Dept.:
How much money spent here determines how well and how many International players are scouted.

Advance Scouting Dept.:
How much money spent here determines how well you see any player that is or has been on a roster. All players current ratings are seen by everyone the same. Their projected ratings however are not, the more spent here the truer the projections become. As a note, the difference between $18M and $20M is more fuzzy than one would think.

Training:
Money spent here helps prevent injuries as the guide says. But it is more than that also, think of it as bulking up in the weight room. Being physically prepared helps play on the field. With good training and coaches a players ratings improve. As a rule I increase this area to $20M.

Medical:
If a player gets injured, the more spent in this area lessens the injury and allows him to rehab better and faster. As a rule I spend $14M to $16M here and depends on health ratings and age at the ML level. If you have players who get hurt a lot, you want a lot of money in this area, so they can get back on the field quickly. If your players all have health ratings of 90+, then you can skimp in this area a little bit.

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