Tuesday, August 5, 2008

Money don't grow on trees

At the dawn of each new season, franchise budgets are the first thing decided upon by general managers. If calculated incorrectly, budget decisions can have a major affect on a franchise -- whether that means having the cap space to add an extra piece through trade or free agency, having the means and proper scouting to draft the right players or sign internationals, keep the team healthy or hire the right coaches depends on the team and the circumstances around it. Every season, one of the most important decisions a GM will make is the very first one -- budget numbers.

I stumbled upon some free time and began comparing budget numbers from season 2 to season 3 and found a few interesting things.

Last season saw 17 franchises (slightly more than half the league) transfer money from one portion of their budget to another. Certainly not every team was forced to make the transfers due to bad budgeting. Some were able to unload salary and thus transferred the freed-up cash to the prospect or coaching pool. Whatever the reason, teams were losing half of whatever they transferred. So if 17 teams all made some sort of payroll transfer last season, exactly how much money was thrown away and who were the teams that wasted the most dough?

Roughly $76 million. That's how much teams lost in budget transfers in season 2. The biggest money waster in that pool? The Atlanta Bandits, who transferred about $34 million from payroll to prospect, costing them $17 million in the process. The Bandits weren't the only double-digit money wasters in season 2 as New York and Vancouver threw away $14 million and $12 million in transfers respectively. Chicago wasted $9 million in transfers and Ottawa flushed $5 million down the drain to round out the top five.

Now certainly some teams plan to spend more than the $20 million they're allowed to budget for in the prospect pool, so that's one reason for the enormous transfer amounts. But there were also plenty of teams transferring money into their player payroll due to miscalculations.

Another interesting find when comparing budget numbers from last season to this season is that of the 32 teams in The Bigs, 20 budgeted for payrolls of at least $80 million last season. This season? Only 15 teams have budgeted for $80 million payrolls or higher. A sign of GM's getting better at setting their budgets? Well unless we know the direction of each franchise and the intentions of every GM, we can't be sure.

We do know that only six teams have budgeted to spend $90 million or more on player payroll this season, with the highest being Nashville at $107. Last season, only four teams budgeted for that kind of player payroll, though Salem would eventually jump into the $90 million-plus pool via transfers. We've also already seen six teams transfer funds in season 3 and we haven't even begun spring training yet.

So what does all of this mean? Well, I don't know. I was just bored and found it interesting. Do with this information what you will.

1 comment:

Anonymous said...

There is a time for everything,
a season for every activity
under heaven. A time to be
born and a time to die. A
time to plant and a time to
harvest. A time to kill and
a time to heal. A time to
tear down and a time to
rebuild. A time to cry and
a time to laugh. A time to
grieve and a time to dance.
A time to scatter stones
and a time to gather stones.
A time to embrace and a
time to turn away. A time to
search and a time to lose.
A time to keep and a time to
throw away. A time to tear
and a time to mend. A time
to be quiet and a time to
speak up. A time to love
and a time to hate. A time
for war and a time for peace.

Best wishes for continued ascendancy,
Dr. Howdy

P.S. Here's some blogs & videos
that I found of interest as
I negotiated my way through

Video With Above Poem
Every Student
My Thoughts
My Blog Video
Religion Comparison
Avoid This Place
Danish Cartoons
Arabic Cartoons
Muhammad or Jesus???
Answering Islam
Is Jesus God?
A Short Look At Six World Religions
God's Word in different languages...
How to become a Christian
Who Is Jesus?
See The Word
Watch The Jesus Movie
Spanish Cartoons
Islam Watch
Former Muslims
German Cartoons
Chinese Cartoons
The Trinity
Italian Cartoons
Greek Cartoons
Japanese Cartoons
Portuguese Cartoons
Many Languages
Around the Well
French Cartoons
Hindi Cartoons
Russian Cartoons
Little Girl
Get Saved?
Mysterious Disappearance
Evolution Video
The Departure
You Need To See This
'Thought & Humor'

Wist u dat de God van u houdt?
Avez-vous su que Dieu vous aime ?
Wußten Sie, daß Gott Sie liebt?
Avete saputo che il dio li ama?
Você soube que o deus o ama?
¿Usted sabía que el dios le ama?

Click Here

Tell me sometime what your
thoughts are about all this:O)