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Retrocession - Salary tax

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301681.1
Date: 11/14/2019 4:32:48 AM
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IV.51
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13091309
Situation:

On Monday I will have the last economic update of the season 47
I have not played games in the last week, but I will pay salaries because I will play in the week of the start of season 48 (difficult to understand but it is so, right?)
I will be retrocessed and I decided to sell some bulky players to rebuild the team.
Will I be forced to pay the salary tax even if there will be a lower salary cap in the new series (where I will have the game's income)?
Because it doesn't have a shred of sense that I pay taxes related to a series if the proceeds I have will be in another .. it's totally unfair.
Does anyone know how to answer me?

This Post:
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301681.2 in reply to 301681.1
Date: 11/14/2019 6:52:49 AM
Overall Posts Rated:
14901490
difficult to understand but it is so, right?
not really difficult to understand and yes you are correct.

Will I be forced to pay the salary tax even if there will be a lower salary cap in the new series (where I will have the game's income)?
there is no salary cap. What you are probably referring to is your own personal economy being in the red and you forking out overextension tax on top. Overextension is charged as a percentage of that negative balance (after the balance has been reduced by the training exemption - I have had over 400k training exemption before and I'm sure homegrown teams have gone higher).

I believe overextension tax is not charged in the first week (maybe 2 if you don't have a home game?) of the season otherwise many promoting teams would pay it for no fault of their own. Demoting teams only benefit in this specific instance, as their TV money in the first week is based on the higher division amount.

Just make sure you pay salaries your gate receipts allow you to, while staying profitable and you'll have no problem.

This Post:
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301681.3 in reply to 301681.2
Date: 11/14/2019 7:11:51 AM
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IV.51
Overall Posts Rated:
13091309
there is no salary cap.


"Player Salaries Floor"

This, since I normally hold the Italian language I didn't know exactly the term .. but it seemed to me quite intuitable ..

I do not have accounts in red and that is not the case (although it would be interesting to understand how it would work in that case) ...

The speech you make on the TV contract is true .. shame that the TV revenue is a fixed gain, while salaries can vary and even by a lot (and then a tax was put on to avoid making teams too cheap ...)

The salaries have been linked to the spectators' receipts .. if you have no receipts from the spectators in the weeks of post season you do not pay salaries .. the last week has always been counted out of this rule for the future revenues of the following season .. but why do I have to pay a fine to get salaries below the threshold of a III when I get spectator revenue from IV ?!

This Post:
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301681.4 in reply to 301681.3
Date: 11/14/2019 11:34:39 AM
Overall Posts Rated:
14901490
Ok I see now.

Calculations will be made on the salary floor, but all the other numbers are also based on D3 (TV, Merch, etc). I'm not sure what the difference in floor between D3 and D4 is, but it shouldn't be that large. The difference between D2 and D1 (something like 260k in one case and 520k in the other) is the only one that is massive.

In any case there is no way to adjust this, since the economy update is done before the offseason calculations.

Last edited by Lemonshine at 11/14/2019 11:35:10 AM