

***TARGET DATE FOR RULE CHANGES: 2005 season (w/4 new expansion teams)

ATTENDANCE:

- A large majority of a team's financial success is based on attendance.
- The on-field performance of each team will directly affect their attendance.
- Because the stadium capacities vary (from 33,990 at Fenway Park to 66,307 at Qualcomm Stadium), the way in which 
team performance will result in attendance is in terms of percentage of capacity. 
- The maximum percentage of capacity is 100%.
- Performance to attendance will correlate based on the following scale:

	Win Threshold		Percentage of Capacity
	=============		======================
	60 or less		60%	
	61 - 80			70%
	81 - 90			80%
	91 - 100		85%
	100 or more		90%

- As well, bonus percentages exist where a team that falls under certain circumstances may earn bonus percentage points. 
These circumstances are as follows:

	- NABL Championship: + 7.5%
	- League Championship: + 6.5%
	- Division Championship: + 5%
	- Wildcard: + 4%
	- Expansion Team: 25% for first year, 15% for second year, 10% for third year.
	- New stadium: 25% for first year, 15% for second year, 10% for third year.
	- All-Star host: 15% for the year of the All-Star game.

- Due to small capacity, the following stadiums will automatically receive bonus percentages: 
	- Fenway Park (20% bonus)
	- Pro Players Stadium (15% bonus)
	- PNC Park & Wrigley Field (10% bonus)

- Teams can also lose percentage points based on their average ticket prices. See the next section for more information on
ticket prices and their affect on attendance.


AVERAGE TICKET PRICES:

- The average ticket price for the NABL will start at $ 18.50.
- Teams may adjust their average ticket prices each year as they see fit; however, there are consequences to raising and
lowering ticket prices.

- RAISING TICKET PRICES:
	- Teams may increase their average ticket price over $ 18.50 by $ 1.00 each year without any drop in attendance.
	- For every 50 cents the ticket price is raised after the first dollar, attendance will drop 5%.
	- Teams in the small capacity stadiums (Fenway, Pro Players, Wrigley & PNC) listed above can increase their average
	ticket price by $ 2.00 before losing any percentage points.

- LOWERING TICKET PRICES:
	- For every 50 cents the ticket price is lowered below $ 18.50, team attendance will increase by 5%.


STADIUM FUNDING:

- The government will give funds to the team for any new stadium. The amount of funds is dependent on the city, as each
city will give different amounts.

- One can fund the remainder of the stadium with one of two ways:
  a) Private Funding - Funds that come from the ownership (from savings or loans).
  b) Public Funding - Funds that come from the state and local government. 
     Public funding is broken down as such - teams can receive up to:
     i) triple the media dollar/local capita amount (based on one team) from the local government; 
     ii) from the state government the team will receive $ 4.00/capita (state). 
     *all population totals are based on the 2000 Census*

- If a team chooses public funding, regardless of the amount, the local government will own the equivalent share 
  of the stadium.
- If the private funds are a loan, the loan must be repaid over a maximum ten-year period at an interest rate of 6.0%
- While the owner still owes a balance to the state, they will continue to collect their share of money from stadium 
  revenues**
- Unlike with a public loan, if a team chooses a private loan, they do not have to split their stadium revenues. 


FRANCHISE VALUE:

- Determind by assets, debts, market size, stadium ownership, profits/losses and performance. 
- Factors into loans (see Loans sections)



REVENUES:
=========

GAME RECEIPTS:

- Based on the formula of: TA (total attendance) x ATP (average ticket price)

LOCAL MEDIA REVENUES:

- Will vary from team to team, city to city, state to state, market to market.
- Each city and state will be assigned a media dollar amount per capita that the local media revenues will be based on.
- If there is more than one team in one market, the media dollar amount for each team will be lower and will fluctuate
from year to year based solely on the performance of the team (i.e.-two teams in New York City; if team A wins 90 games 
one season and team B wins 70 games the same season, team A's media revenues will be marginally higher than team B's).
- Per capita amounts will be based on real-life amounts, but may not be exactly the same.

POST-SEASON:

- Money earned as a result of the post-season based on their success in the post-season.
- Will be as follows:
- each Divisional Series home game: $ 1 million 
- each League Championship home game: $ 1.5 million
- each NABL Championship home game: $ 2.5 million

CONCESSIONS:

- 30% of the total game receipts.

LUXURY SUITES:

- 20% of the total game receipts.

CLUB SEATS:

- 10% of the total game receipts.

MERCHANDISING:

- Each team will receive $ 5 million in merchandising, plus $ 100,000 for each win over 60.

NAMING RIGHTS:

- Can be to a maximum of 1.25% of either a) the stadium value or
b) if the stadium is worth less than the franchise value, the
halfway point between the stadium value and the franchise value,
per year.
- If heritage stadiums (Fenway, Yankee, Wrigley) choose to have
corporate naming rights, the concession revenues will decrease by 5%.
- Company must fall within one of the following two categories: 
  a) Fortune 500 company. (see http://www.fortune.com/lists/F500/index.html)
  b) Company already sponsoring a professional sports stadium or
     arena.
- The maximum length of a naming rights contract is 25 years. 
- If the contract is paid in full up front by the company, it will be
  done at the rate of 1.15% of the total stadium value.
- Naming rights are PERMANENT through the duration of the contract and can only be transferred if a) the company files
for bankruptcy protection (i.e.-Enron), b) is purchased by another company who already has naming rights on a NABL stadium
or c) falls off the Fortune 500 list for a minimum of five consecutive years.


PARKING:

- Parking revenues will consist of $ 4.50 per paying fan over the course of the season. 


NATIONAL TELEVISION:

- In the 2005 season, the national television contract will be worth $ 600,000,000.
- Each year, the television contract will increase by 5%
- The revenues will be split equally amongst all NABL teams.


REVENUE SHARING:

- ALL teams will participate in revenue sharing as follows:
	- The top 12 teams in revenue will disburse funds to the bottom 12 teams in revenue.
	- The amount will be determined as follows:
	- The 1st team in revenue will disburse money to the 24th team; 24% of their difference in revenue will be 
	  given to the 24th ranked team from the 1st ranked team (i.e.-if the 24th team generates $ 75 million in revenue
	  and the 1st ranked team generates $ 175 million, the 1st team will give $ 24 million (24% of the $ 100 million
	  difference) to the 24th team). The 2nd ranked team will give 23% of the difference to the 23rd ranked team, 3rd 
	  ranked will give 22% to the 22nd rank team, and so on...the 12th ranked team will give 13% to the 13th ranked team.

CASH AWARDS:

- Awarded by the league for a variety of different reasons.
- Examples: helping with league activities; incentives, etc...
- Beginning in 2005, there will no longer be any cash awards to the teams for individual player awards (i.e.-MVP); however,
there will still be some cash awards given out to the winners of the following awards/distinctions:
	- Best record in each league: $ 1,000,000
	- Best record in NABL: $ 2,000,000
	- A.L./N.L. Owner of the Year: $ 5,000,000
	- All-Star host: $ 5,000,000
	
INTEREST:

- At the beginning of each off-season, teams will receive 7% interest on all the money they currently have in their team
savings account.


EXPENSES:
=========

PLAYER SALARIES:

- The total salaries of all players under Major League Contract.


MANAGER SALARIES:

- The total salaries of the team's current manager as well as any liability on contracts of previous contracts who were
fired by the team.
- Manager salaries are determined by the following:

Base Salary: $ 500,000
PLUS: 
- $ 100,000 for each world series title
- $ 75,000 each consecutive winning season
- $ 50,000 each winning season
- $ 50,000 for each: manager of the year award, division title and
  league championship (all in MLB)
- If a team chooses to re-sign a manager or extend his contract,
  they may do so at a flat renewal rate of 150% and for up to three
  years. 


MINOR LEAGUE SIGNING BONUSES:

- Players drafted in the Minor League Draft will receive signing bonuses based on their draft position as follows:

ROUND 1
	Pick 1 - $ 5,000,000
	Pick 2 - $ 4,500,000
	Pick 3 - $ 4,000,000
	Pick 4 - $ 3,500,000
	Pick 5 - $ 3,000,000
	Picks 6 - 10 - $ 2,500,000
	Picks 11 - 24 - $ 2,000,000

ROUND 2
	Picks 1 - 5 - $ 1,500,000
	Picks 6 - 10 - $ 1,000,000
	Picks 11 - 24 - $ 900,000                        

- Players will not have a salary that counts against the team payroll until they are activated on the 40-man roster;
however, each player on the minor league roster without a Major League salary at the beginning of each regular season 
will be paid $ 50,000. This figure will not be found on the team's Player Salaries, nor will it show on the team's 
financial sheets, but the total amount will be included with the team's Farm Expenses. 


COACH SALARIES:

- Total salaries of all the team's current coaches (each team must have 6 coaches)
- Base of $ 200,000
- Increases due to bidding (similar to player FA)
- Coaches are given two year contracts.


SCOUTING SALARIES:

- Scouting salaries will be 200% of the total minor league signing bonuses.
- For each international player (defined as any player not born in the United States) on the team's minor league roster, 
scouting salaries will increase $ 100,000 overall.


FARM EXPENSES:

- Will consist of the total amount of minor league player salaries (as detailed above under MINOR LEAGUE SIGNING BONUSES,
last point) as well as the total money paid to minor league teams (as detailed below).
- Each team will have one A, AA and AAA team in the North American location of their choice.
- The expenses will be as follows: 
	A team: $ 2,000,000
	AA team: $ 3,000,000
	AAA team: $ 5,000,000
	=====================
	TOTAL: $ 10,000,000

STADIUM PAYMENTS:

- The amount of money paid annually towards paying off the loan used to purchase the stadium (if one was taken).
- See the section on Stadium Financing for information on the amounts to be paid off.


STADIUM EXPENSES:

- The stadium expenses per home game will vary depending on stadium.
- The newer the stadium, the more the stadium expenses.
- This covers things such as stadium-related salaries, etc...


ADMINISTRATIVE PAYROLL:
 
- For all teams, this will represent 10% of their team's payroll.


LEAGUE FINES:

- The total of all league fines accumulated throughout the previous season.


REVENUE SHARING:

- See the Revenue Sharing section under REVENUES.


LUXURY TAX:

- Teams who exceed a certain payroll amount will be subjected to luxury tax.
- The payroll amount will start at $ 55,000,000, but will increase as salaries do.
- All teams who exceed $ 55,000,000 in payroll must pay a luxury tax of 25% of their total payroll.


LOAN PAYMENTS:

- All loans taken out will be subjected to 5% interest and must be paid off over five years.
- This means that the minimum loan payments will be 20% principal + 5% interest each year (or 25% of the total outstanding
balance).
- Loans can only be taken out once per year.
- The first loan cannot exceed 10% of the team's value.
- Subsequent loans cannot exceed 5% of the team's value until the initial loan (of 10% of the team's value) is paid off
in full.
- A team can only have three outstanding loans at one time.
