Debt Relief - DRAFT and Discussion
Posted: 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.
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.