Debt Relief - DRAFT and Discussion

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commish
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Debt Relief - DRAFT and Discussion

Post by commish » Wed Sep 07, 2016 2:06 am

The original rules of the GLBL has a stipulation that puts in place a 'Debt Relief' program, with a TBD status.

Given the sad state of the TC Bears franchise it might be time to determine the program. As a reference I've copied and pasted Mike's program that was rather easily approved by the GM's in his SBC league. It is at the bottom of this document. Some ideas for our own version will be listed below.

-DRAFT - DRAFT - DRAFT

- Franchise must have had three consecutive seasons of a negative cash balance
- Must have shown, and can demonstrate, attempts to reduce debt over the past two seasons (including the current season)
- Payroll must be less than 50% of the league's highest payroll (or 50% of the salary cap in event of a salary cap)
- Franchises must not be spending more than 120% of the scouting and player development baseline (i.e. no more than $240k on a $200k baseline) for the season debt relief is applied in

-New GM's assuming teams that meet the above criteria will have the first stipulation waived.
-GM's can only invoke the Debt Relief Program 1x in their career


SBC PROGRAM
Debt relief will:
- Wipe ALL debt from the club to a cash balance of $0
- Be actioned a day before Spring Training to allow cash to be distributed to allow budgets to be adjusted for scouting and player development

Qualifying criteria:
- Must have a budget <60% of the league's highest budget team the year debt relief is applied for
- The GM must not have ever received debt relief at this, or any other, SBC franchise
- Franchise must have been in the league for 5 years
- Franchise must have had three consecutive seasons of a negative cash balance
- Payroll must be less than 50% of the league's highest payroll (or 50% of the salary cap in event of a salary cap)
- Franchises must not be spending more than 120% of the scouting and player development baseline (i.e. no more than $240k on a $200k baseline) for the season debt relief is applied in
- Must have shown, and can demonstrate, attempts to reduce debt over the past two seasons (including the current season)
- Must be applied for BEFORE the end of the final Grand Final series game to be accepted for the following season

Owner responsibilities:
- Debt relief will only be considered if the GM keeps records (documented in this thread) of the negative cash balance at the end of each season and the attempts made to reduce debt. If any information is deemed confidential it can be emailed to the commish instead, but MUST be referenced here with the date and subject line of the email to ensure it is easy to find

Overall I hope to not have to dish this out too often as GMs are expected to work within the constraints given to them, however the league desires healthy competition across the board to help the league achieve its overall goals.
GLBL Commish

bearsroyce
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Re: Debt Relief - DRAFT and Discussion

Post by bearsroyce » Wed Sep 07, 2016 4:30 pm

While the debt is not insurmountable, this would greatly improve my ability to turn a profit in the following season and speed up my competitiveness.

Detroit_Eddie
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Re: Debt Relief - DRAFT and Discussion

Post by Detroit_Eddie » Wed Sep 07, 2016 4:54 pm

Honestly it does stink that his team is so in the hole. However, i’m not for debt relief because had we some infusion of cash after the first year I would have been able to sign all the guys I drafted and ended up having to lose after the first season.

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omniart
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Re: Debt Relief - DRAFT and Discussion

Post by omniart » Wed Sep 07, 2016 7:49 pm

Rules can sometimes be counterproductive, and I think that this is a good example of that. These rules would allow a cynical GM to attempt to game the system by blowing the budget on free agents one year. Imagine a team that's near the end of its championship window—with key players about to go into decline—and soon to be undergoing rebuilding anyway. Why not bet the farm on a championship this year?

Though it's messy, I prefer tackling things on a case-by-case basis. This is more realistic, if you think about it. In real life, if one team is in severe financial difficulty, it is a threat to the stability of the league as a whole.

I'd just say we put it to a league vote, and if the vote is in favor of helping a team, then the money for helping that team comes from the other 11 teams. That is, let's say we vote that Traverse City needs help: each of the 11 other teams then donates about $2 or $3 million to Traverse City, for about $22 or $33 million total.

This seems to me to be much better than a magic cash drop.

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Al B
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Re: Debt Relief - DRAFT and Discussion

Post by Al B » Thu Sep 08, 2016 2:02 pm

Maybe debt relief should only be allowed for new GMs? That way no existing GM could attempt to game the system as Martin suggests.

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commish
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Re: Debt Relief - DRAFT and Discussion

Post by commish » Thu Sep 08, 2016 6:39 pm

Again, thanks to all who have made observations and suggestions.

I'm taking my time with issues like this one because of the complexity it poses and the precedent it sets. Nathan has already agreed to 'buck up' with the cash poor Bears (gracious of him to say the least as he was not aware of the $ picture when he joined, and either was I at the moment I invited him). I learned from his observation.

So, more on this later. It may evolve into a voting issue at some point.
GLBL Commish

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