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Div II economics

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This Post:
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264269.16 in reply to 264269.11
Date: 10/21/2014 6:28:14 AM
Overall Posts Rated:
14901490
The economics that we learned about in other Div II don't match

In my current Div2, the salary floor is 175k, TV contract is 125k and merch is 33k (17k running deficit before staff and gates).

If I understand correctly in Utopia Div 2, those values are 151k, 108k, 24k (19k running deficit before staff and gates).

Seems rather close to me.

Edit: it also looks a lot better than promoting to D2 with a 8.5k arena when the majority of the teams have a 20k arena...

Last edited by Lemonshine at 10/21/2014 6:56:49 AM

This Post:
00
264269.17 in reply to 264269.3
Date: 10/21/2014 6:41:41 AM
Overall Posts Rated:
14901490

So merchandising in div IV earns 17k at a team salary of 51k (33%)
Two divisions higher up, merchandising in div II earns 24k at avg. team salary of 240k (10%)
That is just crazy.

I think you're looking at things from the wrong perspective. Utopia's numbers are not dramatically different than another D2 without NT or U21 players. The real difference is in the size of the arenas. The 15k-20k deficit from TV+Merch-Minimum Salary is standard for a D2 and I guess you'd be close to a normal D2 economics if Utopian managers had an arena generating 200K+ gate income.

I think the implicit gate income increase from D3 to D2 (for a large arena) is substantially more than 30k. It is more like 120k-150k. Clearly Utopia D2 teams have much smaller arenas than your usual D2 therefore that increase is scaled down. The 500k promotion bonus should have given you an extra 30k running from the arena all things being equal though.

This Post:
00
264269.19 in reply to 264269.17
Date: 10/21/2014 7:51:04 AM
Brutus Buckeye
ASL
Overall Posts Rated:
206206
Second Team:
The Ironmen

I think the implicit gate income increase from D3 to D2 (for a large arena) is substantially more than 30k. It is more like 120k-150k. Clearly Utopia D2 teams have much smaller arenas than your usual D2 therefore that increase is scaled down. The 500k promotion bonus should have given you an extra 30k running from the arena all things being equal though.


If this were correct then everybody with their small arenas should be selling out, but it's not even close.

This Post:
00
264269.20 in reply to 264269.18
Date: 10/21/2014 8:06:17 AM
Overall Posts Rated:
14901490
It makes me wonder about Utopia season 30 Heaven.
I suppose it will be the same thing. The difference in revenues would probably be over 150k jumping from D2 to D1 with a large arena, but the Utopia teams will be nowhere near that and the deficit (without NT/U21 players) will also be larger. $1 million promotion bonus is a lot of cash though.

Ultimately it's a trade-off. Economically D2 in Utopia does not have the potential to generate profits as much as a D2 elsewhere compared to lower divisions. However you're still better off in D2 than you would be in D3 because for the same running deficit you can afford a much better roster (and this will impact also the money D2 teams will be able to make from the Cup).

A 151K salary is a lot better than most D3 playoff teams will have at least in the first half of the season.

This Post:
00
264269.22 in reply to 264269.21
Date: 10/21/2014 8:31:13 AM
Overall Posts Rated:
536536
Perhaps in an effort to make it to Div 2, many teams have taken the fast track strategy which involves investing in aging geriatrics rather than their arenas and the training of youngsters.

Im hopeful of breaking the 200K gate barrier in Div III before the end of the season and after one more purchase may yet be able to compete with some of the Div 2 teams when it comes to the cup

This Post:
00
264269.23 in reply to 264269.22
Date: 10/21/2014 8:53:02 AM
Headless Thompson Gunners
Naismith
Overall Posts Rated:
716716
Second Team:
Canada Purple Haze BC
Have tried to manage all 3
Aging vets, train 3 guys at least every week
tried to keep up on thr arena as well
was just hoping for a little more money

The comparison earlier on and saying their close is not really so
Even $17K more in tv and $9K for merchandise would be a big help

I think those hoping to be first ever Heaven residents would be ok just breaking even

This Post:
22
264269.24 in reply to 264269.23
Date: 10/21/2014 9:01:27 AM
white snake
II.1
Overall Posts Rated:
72997299
Second Team:
Black Forest Boars
$17K more in tv

The TV contract is bound to the salaries of the whole league. If you want more TV money, buy expensive players before the TV contract is generated and fire them after that.

This Post:
00
264269.25 in reply to 264269.24
Date: 10/21/2014 9:20:27 AM
Overall Posts Rated:
14901490
$17K more in tv

The TV contract is bound to the salaries of the whole league. If you want more TV money, buy expensive players before the TV contract is generated and fire them after that.

Exactly so. And the salary floor is tied to TV revenues too...so yeah, provided you invested in the arena you're gonna be better off going up. By going up you a) cash in the promotion bonus; b) you can afford a more expensive roster without spending significantly more (because higher TV ad merch will cover part of the increase in the salary floor)


Last edited by Lemonshine at 10/21/2014 9:24:43 AM

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