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Long term arena building and revenue

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272768.63 in reply to 272768.62
Date: 8/24/2015 1:07:15 PM
Overall Posts Rated:
621621
This whole discussion in pretty pointless, but I'll get to that later.

Now, bottom line:

1. Building your arena is a safest path, your team is steadily improving.

2. Strengthening your team instead, can be a faster path, because you improve results\promote and could earn more money even with a smaller arena, which will then bring you cash to improve arena as well.

But option 2 is also riskier, because if you don't know what you're doing, your team may stagnate.

I said before that this discussion is pointless anyway, that's because it's really not hard to build your arena.

This Post:
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272768.64 in reply to 272768.62
Date: 8/24/2015 4:07:59 PM
Overall Posts Rated:
370370
...save until you have enough money to win the b3 IMO...
A lofty and honorable goal indeed. And not relevant to any mid- level or lower-level team.

THere is nothing lost by building seats.
This completely false assertion can be repeated only by someone with no clue of what opportunity cost is. This may help:
"DEFINITION of 'Opportunity Cost'
1. The cost of an alternative that must be forgone in order to pursue a certain action. Put another way, the benefits you could have received by taking an alternative action."

You may google "opportunity cost" if you still don't understand how it applies to the money lost building empty seats versus how it could have been put to an alternative action, for example buying players or a better trainer. Only when there is absolutely nothing else to do with your money is the opportunity cost zero, although I would suppose that even then some would argue that options lost is an opportunity cost, too.

This Post:
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272768.65 in reply to 272768.61
Date: 8/24/2015 4:27:27 PM
Overall Posts Rated:
117117
 That could mean enough arena to promote plus enough cash on hand to make your arena worthy of the next level.
That way, if you don't promote as planned you have the cash to put to better use if the opportunity arises. 


If you have an arena built already you don't need to stockpile cash to build later. It is already creating you revenue while giving you the freedom to invest the savings you have on building a sustainable roster. Once you pay for the seats they're a valuable commodity that will (within reason) always generate profit. That is where the "build as much as you can as fast as you can" logic makes perfect sense.

Spending millions on players and not promoting sets you back 2-3 seasons in most cases. Add another couple if you still need to invest in infrastructure.

Last edited by Perriwinkle Blue at 8/24/2015 4:29:22 PM

This Post:
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272768.68 in reply to 272768.67
Date: 8/24/2015 5:15:50 PM
Overall Posts Rated:
621621
The first team to win Utopia didn't have that much arena seats. He was basically investing money into veterans, won games, hence filled small(ish) arena with big prices.

Of course, he knew what he was doing. A not so skilled manager would not profit from such a tactic, and should build arena instead.

What I'm saying, let's say you have a hypothetical league. If 8 teams go arena, 8 teams go full force, 1 team will win a promotion, but other 7 teams will be in a weaker position than those 8 who prepared for the future.

Basically, if you want to be a tough guy, you better be the toughest guy, or you're screwed :)

This Post:
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272768.70 in reply to 272768.65
Date: 8/24/2015 11:16:18 PM
Overall Posts Rated:
370370
Once you pay for the seats they're a valuable commodity that will (within reason) always generate profit.
Unless they're empty, of course, in which case they return nothing.

I honestly didn't expect opportunity cost to be such a difficult concept for everyone to understand, but I guess it is.

This Post:
00
272768.72 in reply to 272768.71
Date: 8/25/2015 8:52:21 AM
Overall Posts Rated:
370370
I didn't think you would suddenly get it, but that's okay. carry on.

This Post:
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272768.73 in reply to 272768.72
Date: 8/25/2015 11:26:22 AM
Overall Posts Rated:
654654
Mike your big assumption is that building a large arena in say DIV with empty seats is like burning money which is just not true. The managers that truly understand how the BB economy works, knows that you need to do two things before you promote to the next division: 1) Have your arena up to standards the higher division and 2) create a core of players needed to not only promote but be able to keep you from relegating.

While it may seem counter-intuitive to build an arena in DIV that may not sell seats but it is an economically sound decision. If you promote to DIII with a small arena, your opportunity cost is giving up all of the money that you could have been making once you promoted to DIII with the bigger arena. Basically, you do not maximize the promotion attendance bonus if you don't have a big arena when you promote. You will never be able to recoup the lost money, you could have been earning. In DIII, you can sellout a 20k arena so it makes sense to build a 20k arena in DIV.

As wolph stated above, this game does not reward you for almost winning. Building an arena makes a lot of sense before buying the players you need to promote. The opportunity cost of buying a player on the TL, is that you lose the cash you could have been making every week on their salary.

The only exception I would have would be to spend money on a trainees before building the arena. Arena building time is a terrific opportunity to train while you are not really focused on promoting. But unless you are spending money on top tier trainees, you aren't really going to spend more than a couple 100k on trainees. With proper planning, you finish arena building, get your trainees to the point that they can compete in the higher division, and have the cash to buy the players you need on the TL all around the same time.






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