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Business Management FAQ by economiester

Version: 1.21 | Updated: 06/05/05

MLB:2006
by 989 Studios

"Business Management" FAQ 
by Mr. Kim D. Rodieck
also known in the gamefaqs.com world as "economiester"

-------------------------------------------------------
Table of contents:
-version history
-introduction
-explanation of cost structure
-checking your financial health

-pre-season business management
FRANCHISE GOALS
RESTRUCTURING YOUR ROSTER
RELEASING PLAYERS
RESTRUCTURING PLAYER SALARIES
HIRING A STAFF
TRAINING AND REHABILITATION
TELEVISION CONTRACTS AND PRIMARY ADVERTISER       
BILLBOARD ADVERTISERS
LOANS AND BANKING
VENDORS AND FACILITIES
TRANSPORTATION

-in-season business management
PLAYER ADVERTISING       
TEAM ADVERTISING
TICKET PRICES
CONCESSION PRICES
PARKING PRICES
ADDING VENDORS
ADDING NEW SEATS

-end of the year business management
SHARED REVENUE TAX
RESIGNING PLAYERS
TRADING PLAYERS
SETTING NEW ROSTERS
AMATEUR DRAFT
LOOSE ENDS

-conclusions and final words
-reader's Q&A
-thanks
-contact info
-legal stuff


--------------------------------------------------------
Version History
--------------------------------------------------------
Versions:
v.1.00 - 3/15/05 - first version contains the basics of 
profit building

v.1.01 - 3/22/05 - corrected a few spelling and syntax 
errors

v.1.11 - 4/13/05 - added some observations about 
promotions, ticket prices, and parking prices.

v.1.21 - 6/5/05  - added some observations in several 
sections. added a few new sections

-------------------------------------------------------
Introduction
-------------------------------------------------------
Thank you for checking out my FAQ page for MLB 2006. I 
earned my BA in economics from the University of Washington 
in 2005, so I am naturally drawn to MLB 2006 because of the 
incredibly deep franchise mode that this game offers. I 
spent a lot of time playing MLB 2005 and figuring out the 
rules for how to make a profitable franchise, and I used 
that knowledge as a foundation for earning profits for MLB 
2006. 

Rather than making this FAQ simply about different business 
aspects of the game and presenting them in no particular 
order, I have decided to organize these aspects into 
different parts of the baseball season. This way, if you 
want to start a new franchise, you can follow the steps 
contained in the preseason sections. As your season 
progresses, you can check in on the in-season section, and 
then you can check out the end-of-the-season section to get 
your self ready for the next season.
 
Before reading this FAQ, let me just remind the reader that 
although this FAQ certainly will give you the tools 
necessary to maximize revenues, this is not necessarily a 
cost minimizing FAQ. There may be some areas in the game 
where you may want to spend significant money, and there is 
nothing wrong with that. Some teams, like the Yankees, have 
very high player salaries, and this will reduce your 
profits, but you can still be very profitable even with 
such costs. With regard to costs, this FAQ will teach you 
how to manage cost...not minimize it. 


--------------------------------------------------------
EXPLANATION OF COST STRUCTURES
--------------------------------------------------------
Understanding this section is very important to having a 
good understanding of how costs are paid.

First, almost all costs and revenues are tracked on a daily 
basis. In other words, you will have to pay out money for 
salaries, training, rehabilitation, and other things for 
every day of the season (including the playoffs if you are 
skilled enough to make it to the post season). For example, 
if you have a player who has a yearly salary of 
$10,000,000... then you will have to pay $55,555 per day to 
that player. This same rule applies for all players as well 
as coaches and scouts. Training and rehabilitation follow 
the same rule. If you decide, at the start of the season 
to, devote $30,000,000 to training, then that will cost you 
$166,667 per day.

The above principal is very important to making decisions 
about hiring new personnel(which is discussed later). Here 
is how to view costs with a simple example. Suppose that 
you have a hitting coach who is being paid $1,500,000 per 
year. You decide that you want to hire a new hitting coach 
who wants $2,000,000 per year. What is the cost of the new 
coach? The answer is $500,000 because that is how much more 
money you have to spend in order to upgrade your coach. But 
we want to view this upgrade in terms of daily costs. Since 
the cost of the upgrade is $500,000, that added amount 
spread out over the period of (approximately) 180 days is 
just $2,778 extra per day. 

Costs like those mentioned above have to be paid every 
single day of the season, no matter what. You will notice 
that your balance sheet will be in decline when you have a 
day off or if you are playing games on the road. That's 
because you are paying the cost of salaries and such during 
this time. 

When you are playing home games, you will be able to 
collect revenue from concessions, tickets and parking. This 
is when you earn your profits. You are still paying out the 
costs mentioned before, but you will also be earning 
revenue from which costs will be deducted. The difference 
between revenue and cost is your daily profit. Just 
remember that you can only earn profits when you are 
playing at home.  

The cost of things like new vendors, additional seats, 
training and rehab facilities are one-time costs, and you 
do not pay for these over a time period(aside from 
maintaining the facilities of course). 

Transportation is a cost that is paid in full at the start 
of every year. This will be discussed more later.


--------------------------------------------------------
Checking your Financial Health
--------------------------------------------------------
There are two ways to check the financial health of your 
franchise. The first way is by checking your balance sheet 
and the second way is to check your funds(which I refer to 
in this FAQ as cash-on-hand). Let me talk about the balance 
sheet first.

Your balance sheet has two major categories which are 
INCOME and EXPENSES. Your NET INCOME is income minus 
expenses. The balance sheet is just a year to date snapshot 
of your profits(or losses) for the year. The only real 
reason to be concerned with the balance sheet is that it 
can be used as a tool to determine how much money in 
profits you are earning per home game. The net income 
figure is only meaningful at the very end of the year since 
it shows how much money was added to your cash-on-hand, but 
let's break down the balance sheet so that you know where 
everything that you do in your franchise is logged.

INCOME
FACILITIES: money earned by selling concessions, tickets 
and parking.
LICENSING/AD SALES: money earned from TV, billboard and 
primary advertising contracts. 
SHARED REVENUE: this is the rebate that you get at the 
start of the year from the shared revenue tax.
LOANS: If you took out a loan, then the amount of that loan 
is logged here. 

EXPENSES
STAFF SALARIES: this is where the salaries of your coaches 
and scouts is logged.
TRAINING/REHAB: the amount of money that you spend on 
training and rehabilitation is logged here.
FACILITIES: When you spend money on new vendors, new seats, 
training facilities, rehab facilities, the cost will be 
logged here. The cost of transportation is also logged here 
at the start of every year.
MARKETING: Money spent on player advertising, team 
advertising and promotions.
BANKING: Money spent on repaying any loans that you have 
taken out.
SHARED REVENUE: At the start of every year(except the very 
first year), the amount of shared revenue tax paid is 
logged here. The shared revenue expense, for you, will 
almost always be higher than the shared rebate resulting in 
a large negative balance sheet at the start of the year.
PLAYER SALARIES: Money spent on player salaries.

Whenever you play a home game, you will notice that your 
net income is rising. That's the income that you earned for 
a home game minus the expenses paid. When you add a new 
facility, like a vendor or additional seats, your net 
income will fall because your added an immediate expense 
without adding any immediate income.

In my opinion, cash-on-hand is the best way to judge your 
financial health. This tells you how much money you have to 
add vendors and seats and such as well as your ability to 
absorb the hit from the shared revenue tax and 
transportation costs. The balance sheet simply tells you 
how much money was added to the amount of cash-on-hand that 
you started the season with.


--------------------------------------------------------
Preseason Business Management
--------------------------------------------------------
This is a very important section. Here, you will lay the 
foundation for a well run business that will affect the 
rest of the season and beyond.


FRANCHISE GOALS
Before you even play your first spring training game in 
franchise mode, you will be required to sign on to a list 
of goals that you must achieve within a span of 4-6 
seasons. When you start up a new franchise, a randomly 
generated set of goals will be created as well as the time 
frame in which these goals must be completed. Some goals 
may be reasonable, but some may not be reasonable. For 
example, the requirement that your stadium must host an 
All-Star game may be unreasonable to you since you do not 
have much control over which city is awarded the honor of 
hosting the game. Therefore, if the goals that you must 
accomplish seem unreasonable, then exit franchise mode 
without saving, and try, try again until you have a 
reasonable set of goals. Keep in mind too that the 
difficulty of your goals is linked to how well your team 
did during the 2004 season. This means that the Red Sox and 
Cardinals will generate more difficult franchise goals than 
will the Mariners and Diamondbacks.
One goal that you may have problems with is the possible 
goal "Draft and All-Star potential player". This is more 
appropriate for end of season business management, so I 
will discuss this issue in that section. This particular 
goal is not very unreasonable, and you should be able to 
accomplish it even if you have the last pick in the draft. 



RESTRUCTURING YOUR ROSTER
Baseball games tend to do a pretty good job of putting the 
game on the market with very up-to-date rosters. However, 
sometimes the game is released too early to catch some late 
deals. You can correct this very easily with an automatic 
roster update if your PS2 is online. If your PS2 is not 
connected, then take this opportunity to shuffle the 
rosters around a bit should you choose to do so.



RELEASING PLAYERS
Unlike MLB 2005, you cannot save money by simply releasing 
players that you do not want. In this version, if you 
release a player, you will have to pay the remainder of 
that player's salary. What a bummer! So keep in mind that 
releasing players is not a good way to save money. Instead, 
what you can do is just allow their contracts to expire as 
time moves on. In other words, don't resign bad or old 
players! They will retire or move on to another team.



RESTRUCTURING PLAYER SALARIES.
Before doing this, you should have restructured your 
roster(if you felt like doing so). At this point you should 
have the roster that you want to start the new franchise 
with. Now, what you need is a piece of paper and a pencil. 
Write down the name of your best players and hot prospects. 
Also make note of the length of their contracts and the 
payment schedules. SAVE YOUR GAME. Now release those 
players into the free agent pool and attempt to resign 
them. You should start by finding the contract length that 
each player is comfortable with and then find out the 
lowest possible salary that is acceptable to them. Write 
that number down and compare it to the contract that the 
player starts out with. If the contract is much more in 
your favor, then you will want to target that player. Now 
LOAD YOUR GAME and restructure the player's contract. This 
is crucial to saving money long term and here is an 
example. In my franchise with SEA, Adrian Beltre was in the 
last year of his contract(for those of you who are confused 
about contract length, it is expressed as a fraction such 
as 3/4 or 2/6 and such. A fraction such as 5/7 means that 
the player is in the fifth year of a seven year contract, 
and 2/9 means that the player is in the second year of a 
nine year contract). I was worried that at the end of the 
season, I would have to pay dearly to resign him. So I 
released him and tried to resign him. Fortunately Beltre 
accepted a 10 year contract at a grand total of about 
$15,000,000, meaning that his yearly salary fell from 
$11,000,000 to about $1,300,000. This particular example is 
actually rare for a player. Most players want a yearly 
salary close to their default salary, but you can find some 
players who will take massive pay cuts. You will also 
notice that as you keep doing this, the game imposes a 
limit on how many players salaries that you can 
restructure. You will notice that your payroll will keep 
increasing and is approaching the budget limit that the 
game imposes on you. The reason why this is happening is 
because when you release a player, you do not have to 
compensate him with any money right away, but when you 
resign him, the amount of money that the player will 
receive for the first year of the contract is added to the 
payroll. What this means is that you are limited in how 
many players you can release/resign. So make wise decisions 
and focus on only your best players who are in the last 
year of their contract. The other problem that arises from 
this is that since your available payroll room is limited, 
so is your ability to trade for players. If you have cap 
room of, say, $1,000,000, then you cannot trade for a 
player that has a salary of $1,200,000.

At the end of the season, the game grants you an increase 
in your payroll budget by x%. The increase is directly tied 
to your team's performance. After doing a simulation of the 
entire season, my Mariners made the playoffs, but they were 
defeated in the first round. That level of success granted 
me a 5% increase in my total payroll. However, when I 
played a full season, and won the World Series, I was 
granted a 14% increase. In the latter example, my players 
swept almost all of the major awards, and I am just simply 
unsure whether winning major awards has an effect on 
payroll increase, but I suppose it can't hurt. What I am 
sure of, is that winning the World Series will give you a 
bigger increase than you would earn if you were defeated 
earlier in the playoffs.

I would write a another FAQ listing optimal contracts for 
each player, but the game randomizes players contracts when 
you start a new franchise which makes it impossible for me 
to tell you whom to release and resign and for how much.  

**********************
****GLITCH WARNING****
**********************
I have run across a glitch that, for some reason, will wipe 
out your coaching staff, and it is connected to salary 
restructuring. When ever you release a player and resign 
him, he will be on the team but will not have a spot in the 
line up. In fact, if you release a starting player, that 
spot in the line up will be left blank. This happened to me 
when I released some minor leaguers and resigned them. This 
left my AAA club with an invalid line up and the game gave 
me the option of AUTO FIXing the problem, and that I think 
is what caused the problem because when I checked out my 
coaching staff(after hiring the best that I could get), I 
noticed that new managers were assigned to the Mariners and 
all of their stats were at or near zero. You can avoid this 
problem by manually setting the rotations and lineups of 
your AAA and AA clubs. Go to LINE-UP and toggle between 
your MLB, AAA and AA clubs with the right analog stick and 
make sure that each club has a valid rotation and line up. 
You should do this before you play your first game of the 
season. In fact, you should first restructure your players 
salaries, then set the line ups and rotation for your 
teams, and then hire coaches. This should prevent the 
glitch from happening. 



HIRING A STAFF
If you feel that personnel such as coaches and scouts are 
not important, then that is your choice. I happen to like 
having the best personnel that I can possibly get, so I 
don't mind spending a bit extra to get the best coaches 
possible. If you read my explanation of cost structure, 
then you will see why hiring the most expensive coach will 
not make a huge dent in your profit margin. I would mention 
that if you are planning to maximize your training budget, 
then having the best pitching, hitting and development 
coaches is critical to maximizing the effect of training. 
This will also keep fans happy to know that their favorite 
players are in good hands. Scouts, in my opinion, are FAR 
less important than coaches, so use your discretion when 
hiring scouts. 



TRAINING AND REHABILITATION
Training your players to become better hitters, pitchers 
and fielders is something that I feel is very important in 
the long term. Good training can turn a young, average 
player into a superstar within a few years, and it can turn 
a superstar into a Hall of Fame caliber player. I like to 
maximize my training budget. This keeps the players very 
happy and you will start to notice that your young 
prospects are developing into great players. Training is 
very costly, but I think that it is worth it. Part of the 
reason is because your team may have some older players who 
will be retiring in a few years. It is a good idea to have 
an up and coming prospect(who's contract has been 
restructured heavily in your favor) training for a few 
years for the chance to fill that void. Perhaps you decide 
to keep costs down by setting all training levels at 50%, 
and that is fine. Having a maximized training budget is, 
just in my own opinion, a good thing, but it is very 
costly.

Rehabilitation, on the other hand, I like to set at zero. 
The reason why I do this is because player injuries 
relatively rare and if, may the Baseball Gods forbid, a big 
time player goes down with an injury, then you can either 
1.)reset and replay the game, or 2.) just replace that 
player in the line up with a prospect or bench player. 
Rehab is only useful, it seems, when injuries happen, but 
injuries are rare enough so that the cost of fully funding 
rehabilitation is not justified. You can also change the 
game settings to set injury frequency at zero if you like. 
However, even if you set injury frequency to zero, there is 
still a chance that your minor league players will be 
injured. Changing your "user game options" does not have 
any effect on a game, unless you are actually playing that 
game. This rule applies to major league games as well. 


TELEVISION CONTRACTS AND PRIMARY ADVERTISER
Television contracts and your primary advertiser are almost 
identical in the way that you should chose them. You should 
be primarily concerned with the length of the contract. The 
shorter the contract, the better, which is especially true 
for TV contracts. The reason why you should want a short TV 
contract is because as your team becomes a real winning 
dynasty, more options and better deals will become 
available. When better deals begin to pop up, you do not 
want to be stuck in a contract for several more years while 
a much better contract is waiting. Once you have all TV 
deal options open to you, go ahead and start choosing on 
the basis of yearly income rather than length of contract. 
Choosing a primary advertiser is a little different from 
choosing a TV deal because you want to optimize both length 
of contract as well as yearly income. Again, short deals 
are better because better deals may be offered in the 
future, but don't sacrifice too much income just for the 
sake of a slightly shorter contract. Keep in mind as well 
that with both TV deals and primary advertisers, they will 
put a requirement on the contract that you must fulfill in 
order to receive full payment. For example, some primary 
advertisers may require that provide a certain facility or 
score an average of X number of runs per game. Just make 
sure that you take note of the requirement before you sign.



BILLBOARD ADVERTISERS  
This one is pretty obvious. When you sell billboard 
advertising, a certain company will pay you to advertise in 
your stadium. Unlike in MLB 2005, where you just sold 
advertising space for a certain number of weeks at a fixed 
rate, MLB 2006 allows you to sign long term contracts at an 
annual, or semi-annual rate. Again, short deals are better 
because better deals may come along in the future. In 
general, the rate at which advertisers will pay you is 
directly a function of attendance. This means that it is a 
good idea to sign deals that expire in midseason. As 
attendance keeps rising, advertisers are willing to pay you 
more. Therefore, I think that the optimal length for a new 
franchise is to choose a deal that expires in the middle of 
2006. By that point(if you have been winning), your stadium 
should be 90-97% sold out each game and advertisers will be 
paying out a lot to advertise in your stadium. Once rates 
are high, then you can start locking in long term deals.



LOANS AND BANKING
This is one of the most crucial aspects of starting off 
your franchise on the right foot. There are several 
purchases that you will have to make at the start of the 
season. When choosing a loan, you want to do two things. 
First, choose a loan amount that fully covers the cost of 
all of the investments that you want to make. Secondly, now 
that you have figured out the appropriate amount for your 
loan, you need to choose a bank. The optimal choice is the 
bank that will loan you your desired amount and provides 
for the lowest monthly payment that you can get. There are 
two reasons for this. First, payments are made on the first 
day of each month. Since you are trying to keep your 
balance sheet high in the black as well as maximize your 
cash-on-hand, keeping this payment as low as possible is 
crucial. The second reason is that you will be paying off 
this loan during the off season. This means that in 
addition to being charged for transportation and the 
revenue sharing tax, you will also be charged for loan 
payments made over the months of the off season. The shared 
revenue tax is a real wallet buster, so you don't want to 
make the situation worse by having huge loan payments 
accumulate over the off season. Also, you can only take out 
two loans at a time. With this particular loan, you don't 
have to perpetually hold on to paying this loan. In fact, 
it is good to pay off the balance of the loan a season or 
two from now, but I will get to that later.



VENDORS AND FACILITIES
Now that you know the rules about taking out a loan, you 
have to use that loan to purchase some assets. You can 
purchase whatever you like, but here are my suggestions for 
what to get.

batting cage            2,000,000
face painting             100,000
playground              2,000,000
hot tub                 5,000,000
ice cream guy x20         200,000
soda man x20              200,000
peanut guy x20            200,000
aerobic room           10,000,000
auto pitcher            5,000,000
spa room                6,000,000
massage room            4,000,000
---------------------------------
TOTAL                  35,000,000

This should give you one unit of each asset, except for ice 
cream guy, soda man and peanut guy for which you should 
have a grand total of 30 units each. 

I know that I said that funding rehabilitation is not a 
good idea, so why would I recommend adding a spa room and 
massage room? It just keeps the players happy and from now 
on, you will only have to spend a small amount money at the 
end of every year to keep it upgraded. Anyways, it is my 
opinion that the optimal loan is a $36,000,000, ten year 
loan from Fin's Bank which produces a monthly payment of 
just $399,674


TRANSPORTATION
Read my lips! Do not EVER upgrade your transportation. This 
is the biggest waste of money in the game. You may be 
tempted to upgrade when you see your players whining and 
complaining that they have to ride on a cheap bus, but 
don't worry about it. Sure, riding on a bus is a negative 
for player morale, but you can more than make up for that 
by being a winning team. The rule here is that there is no 
substitute for victory. Your players will put up with 
having to ride on a bus just as long as your team is having 
a great year. There is another temptation that you should 
avoid. As the season progresses, you will notice that the 
cost of an upgrade keeps falling day by day. Don't be 
fooled. The reason why the cost of a transportation upgrade 
keeps falling is because transportation costs are 
automatically paid in full at the start of each year, and 
that billing pays for the entire year. Therefore, when you 
upgrade your transportation near the end of the season, you 
think that you are getting a great deal, but the cost is 
low because you are only leasing that mode of 
transportation for a few weeks, not a full season. The cut 
off date for transportation upgrades is about three weeks 
before the end of the regular season. By that point, you 
will be tempted by the very low cost of the upgrade. 
However, if you do it, then you will not be able to reverse 
it until the start of next season. When the off season ends 
and the regular season begins anew, you will be charged for 
that one year lease right off the bat. If you upgraded to a 
team jet just before the season ends, you will be hit with 
a bill of $200,000,000! You can get a refund by 
downgrading, but why bother? If your franchise has been 
wildly profitable, then you will certainly be hit with a 
massive shared revenue tax and you WILL start next season 
with a large negative balance sheet. I will get more into 
this later, but the tax has to be paid from your cash-on-
hand. The same rule applies to transportation costs. The 
amount of the transportation lease will be paid out of your 
cash-on-hand. If your cash-on-hand is not sufficient to 
cover your higher mode of transportation, then you will 
automatically be downgraded to a bus. 


--------------------------------------------------------
In-Season Business Management
--------------------------------------------------------
This section is the most vitally important part of 
maximizing your revenues throughout the season. Selling 
soda, beer, popcorn, caps,tickets, parking and such are 
going to be your main focus of making money. Some of the 
sections here are long, but they are thorough in helping 
you understand the revenue maximizing process.

PLAYER ADVERTISING
One way to get more fans to come to your stadium is to 
advertise your players to your fans in order to tickle 
their baseball bone. The benefit of advertising is that it 
slowly, but steadily increases the support and loyalty of 
your fans. This in turn has a positive effect on 
attendance. Of course, when it comes to increasing 
attendance, there is no substitute for victory. Winning is 
the best way to increase attendance, but advertising will 
give your franchise a little extra push. When it comes to 
advertising players, you cannot directly choose whom you 
will advertise. Instead, you will choose a marketing 
strategy based on marketing your team's All-Stars, 
sluggers, rotation, fielders or rookies. From there, the 
game will assign a player who fits that description. You 
should start by setting the budget for advertising. This is 
a yearly budget so, unlike MLB 2005, you will not have to 
constantly buy advertising time as the season moves along. 
Personally, I like to set the total budget to it's maximum 
level, which comes to a grand total of $13,200,000 per 
year. I think that it is worth it. Keep in mind as well 
that once you begin the season, you can always change this 
amount, as well as the marketing strategy. If you have 
committed to a maximized advertising budget, then you 
should probably stick with it, but you should never stick 
with the same marketing strategy. This can be changed 
independently of the budget, so you should be mixing this 
up as the season moves along with different strategies and 
different players.



TEAM ADVERTISING
You can treat this identically to player advertising, but 
there is a slightly more dynamic way in which you should 
approach team advertising. The maximized advertising budget 
is equal to that of player advertising, and you can change 
the marketing strategy independently of the budget. This is 
a major improvement over MLB 2005 because you can change 
your strategy on a single days notice. This means that if 
you have a winning streak going, you can use that as part 
of your marketing strategy as soon as possible and end your 
"Keep the Streak" ads as soon as your winning streak ends. 
Keep in mind though that since media rates are different, 
they also have different levels of effectiveness, so keep 
an eye on the marketing strategy and keep it updated 
according to your team's performance.



PROMOTIONS
The most useful way to think about promotional give-aways 
is to think of them as a type of advertising. My strategy 
is to continuously drop a cheap promotion in the middle of 
every home stand. The reason why I treat promotions as a 
type of advertising campaign is that promotions will raise 
the support of your fans in the same way that advertising 
does with creating continuous happiness. In my opinion, it 
is preferable to use several cheap promotions as a means of 
slowly and steadily increasing fan support rather than 
spending tons of money to give your team momentary bursts 
of fan support. By using this method, your fans will be 
constantly kept happy by looking forward to the next 
promotional event. So my goal is to constantly keep fans 
looking forward to an upcoming promotion. I would go about 
this by dumping one cheap promotion right in the middle of 
each home stand. How many units of each cheap promotional 
item is up to you, but I like to keep the quantity in the 
range of 5,000 - 10,000 units. For more expensive items, I 
would lower the range to 2,000 - 5,000. I must stress that 
the promotion should be scheduled IN THE MIDDLE of a home 
stand only. Do not schedule the promotion on the first or 
last day of a home stand. The reason for this is because it 
will distort the price optimizing technique that I will 
explain shortly.

One gamefaqs poster, theaub, reminded me that doing too 
many promotions is simply a bad idea. He's right. Some 
people may want to do a massive amount promotion by doing a 
promotion every day, and sometimes very expensive ones as a 
way of quickly building fan support and thus quickly 
increase attendance which leads to more money. That 
strategy is nonsense because maximized fan support does not 
necessarily mean that attendance will be maximized. 
Attendance is a mathematical function of several 
independent variables like spending on advertising, ticket 
prices, concession prices, variety in advertising and 
promotions, the time space between promotions, team winning 
percentage, total team wins, position in the standings, 
etc.......There are simply too many variables for 
promotions to be a huge factor in increasing attendance 
partly because all of these variables are weighted 
differently. In other words, nobody will care about having 
promotions every day if the ticket prices are too high.(On 
a side note, the only time where I personally was compelled 
to attend a Mariners game due to a promotion was during 
"Buhner Buzz Night" when the Mariners still played in the 
Kingdome and Jay Buhner was our star right fielder. Every 
fan who was willing to get his or her(and there were 
several women) head shaved in the parking lot got free 
tickets to the game.)

I have to make one very important note about free ticket 
give-away promotions. The game lists the cost of this 
promotion as zero. Do not be fooled! The cost of this 
promotion is very real and, as ticket prices begin to rise, 
this could end up being one of the most expensive 
promotions that you can do. Although the game says that the 
cost is zero, you are in fact paying a cost for this 
promotion since you are forfeiting the revenue that you 
otherwise might have gained. Let me illustrate with a 
simple example. Suppose that you have a lemonade stand. 
Each cup that you sell costs you $0.25 worth of lemons, 
sugar, and ice, not to mention the paper cup. You are also 
charging $1.00 per cup of lemonade. Therefore, your 
expected profit per cup is $0.75. Your best friend stops by 
and you offer him/her a free cup. Did your give away cost 
you nothing? No, since you obviously had to pay for the 
ingredients that went into making that cup of lemonade. 
Then you might say "So the cost of my give away was $0.25." 
Wrong again. The true cost of giving away that cup was in 
fact $0.75. Since each cup earns you a profit of $0.75, you 
just forfeited $0.75 worth of profits! That is what you 
truly lost by giving away a cup of lemonade. The same 
principal applies to a free ticket give away. The cost of 
giving away tickets is the money that you COULD have earned 
by selling them. The more tickets that you decide to give 
away, the more expensive this promotion will be. When 
tickets are given away, I am not sure which tickets are 
being given away. They could be cheap seats or very 
expensive ones. Even if the game distributes the free 
tickets strictly according to price(cheapest seats given 
away first), then the remaining tickets will then be given 
away for the second cheapest, and then third cheapest and 
so on. This would mean that the cost of the give away will 
rise in an exponential trend. Here is a hypothetical, 
totally made up chart to illustrate what I mean:

SEAT          # OF SEATS   PRICE  COST    TOTAL COST
bleacher          1,000      5    5,000   5,000
LF view           1,500      6    9,000   14,000
RF view           1,500      7    10,500  24,500
LF general        10,000     8    80,000  104,500
RF general        10,000     8    80,000  184,500
IF box            4,000      10   40,000  224,500
home plate        3,000      12   36,000  260,500

In this totally made up example, you can see how the true 
cost of this promotion can build up. By giving away 4,000 
tickets, you incurred a cost of $24,500 by giving away the 
tickets rather than selling them. The cost is then borne by 
you in the form of reduced profits when you forfeit the 
revenue from those tickets much in the same way when you 
forfeit cash-on-hand to spend money on buying baseballs to 
give away during a promotion. This whole example is a great 
illustration of the economics concept of "opportunity 
cost". The true cost of anything is the value of the 
alternatives that you forfeit. This applies to other give 
away promotions as well. If you give away 5,000 programs at 
a cost of $2 per unit, then you have to pay $10,000 out of 
pocket. However, the hidden cost, which is very real, is 
the profit that you forfeit by giving those programs away 
as opposed to selling them. So your true cost in that case 
is $10,000 plus the profits that you forfeit.      



TICKET PRICES
It is very important that you find the optimal ticket 
prices before you find optimal concession prices. The 
reason for this is that the number of sodas, hot dogs, 
pretzels, etc. that you sell are a function of two factors: 
the price of the good and the number of fans in 
attendance(which is a function of ticket prices). By 
optimizing prices of concessions before optimizing ticket 
prices, you may end up distorting the profit maximizing 
equilibrium. Now, let's optimize ticket prices. The way 
that we will do this is with the save-test-load method. 
When you begin your franchise for the very first time, SAVE 
your game right before your first home game. Now, on a 
sheet of paper, write down each seating section along with 
the given ticket price for that section. Now, simulate your 
first home game and take a look at how much revenue that 
section generated. Write those numbers down for each 
section. Remember that there will be a bit of variability 
in the revenue generated for each section, but not too 
much. LOAD your game so that you are still facing your 
first home game. In order to find out what the optimal 
ticket price is for each section, play around with the 
prices a bit. Try lowering some prices and raising others. 
Then, write down the change in income that the price change 
caused. LOAD your game again and keep playing with the 
prices until you find the revenue optimizing price for each 
section. Once you find out the optimal prices, load your 
game again and set your prices accordingly and SAVE your 
game. You should still have NOT played your first home game 
because you now have to move on to testing concession 
prices. Before we do do that, I have to go into how to 
continuously keep ticket prices optimized.

The above method should be used ONLY when you begin a brand 
new franchise. This should not be used during the season or 
at the first home game of your second season, or third, and 
so on. There is a very distinct method that you should use 
when optimizing prices from now on.

The save-test-load method will still be used, and the best 
time to do this is on the day before the first game of a 
home stand. The difference is that rather than maximizing 
revenue, the objective from now on will be to raise ticket 
prices as high as possible without having a major drop off 
in attendance. Remember, as your team becomes a winner, you 
will attract more and more loyal fans. These loyal fans 
will not care if the ticket price goes up by one dollar. 
They are willing to pay that little bit extra. What we are 
testing is how much fans are willing to pay before they 
start deciding that the price is just not worth it. That is 
when you start to see a drop off in attendance, and we do 
not want to do that because those fans are also buying all 
sorts of other stuff in your stadium.

Now, SAVE before the first game of a home stand. Before 
simulating the next game for the test, make a note of total 
attendance to-date for that section as well as the price of 
tickets for that section. Now simulate the next game. Make 
a note of the change in attendance. Now LOAD your game and 
raise each ticket by one dollar. Simulate the game and 
check to see if there was any significant drop off in 
attendance. There will probably be some, but we do not want 
any significant drop off. If the drop of is very small, 
then you should raise the price because the raise in price 
will off set the drop in attendance. Therefore, just keep 
raising the price as high as possible up to the point where 
price increases have  a minimal effect on attendance. 

**** important note ****
Remember in the section about promotions when I said that 
promotions should be scheduled for the middle of a home 
stand rather than on the first or last day of a home stand? 
The reason why I recommended that was because when you are 
doing the save-test-load method to test ticket prices, as 
well as concession prices, those promotions might end up 
distorting the true effect of price changes if a promotion 
is scheduled for that same day. In other words, when doing 
this test, we want to do it under controlled circumstances 
in order to find the effect of changing the value of a 
single variable. When a promotion is scheduled on the day 
that you are doing the price test, you will be, in effect, 
testing the impact of two variables: price and promotion. 
We just want to measure the impact of price only. This is 
why I stressed that optimizing ticket prices should be done 
before optimizing concession prices because the amount of 
concessions sold is a function of concession price and 
attendance. By optimizing ticket prices first, then the 
variable of attendance will be held relatively constant 
which means that you should be able to then test for just 
one variable, i.e. concession prices.

For those of you who have an understanding of mathematical 
notation, let me put it this way:

concession profits = f(A,Pc) where A is attendance and Pc 
is concession price. A = f(Pt,D,Pr,X,Y,Z) where Pt is 
ticket price, D is money spent on marketing, Pr is 
promotions, X, Y and Z are other minor variables. To solve 
the problem f(A, Pc), A has to be solved for first. To do 
this D, Pr, X, Y and Z should be held constant so that they 
are considered constants. With Pt being the only unsolved 
variable, Pt can be solved for subject to the constraint 
that Pt*A= ticket revenue is maximized. At that point, A is 
solved for and becomes a constant in f(A,Pc). Since A is 
constant, Pc becomes the only variable and thus concession 
prices are easily solved for.


 



CONCESSION PRICES
Once again, the save-test-load method will be used to test 
what prices will be optimal for all of the different 
concessions. When attempting to optimize ticket prices, we 
were most concerned with tracking the number of tickets 
sold. With concession prices, we can ignore quantity sold 
and just focus on revenue generated. The method to finding 
optimal concession prices is almost identical to finding 
optimal ticket prices. First, SAVE your game on the day 
before the first game of a home stand. On a piece of paper 
with several columns, write down each concession item in 
column one. In column two, write down the current price of 
the concessions. In column three, write down the revenue 
earned to date for each concession. Now simulate the next 
game. In column four, write down the new revenue figures 
that the home game generated. What you want to take note of 
is how much the cumulative revenue increased by. Now LOAD 
your game. Now you have a chance to play with the prices a 
little bit. Of course you should try raising prices prices 
first, so try raising each price by one dollar. Now 
simulate the next game and write down the new revenue 
earned to date figure in column five. LOAD the game and 
compare column four and column five. If column five 
increased significantly over column four, then the price 
increase was justified, and you should run another test by 
adding two dollars to the original price. If there is 
little or no difference between column four and five, then 
THE PRICE IS OPTIMIZED AT THE NEW PRICE. If, however, the 
number in column four is greater than the number in column 
five, then OLD PRICE WAS THE OPTIMAL PRICE. Now that you 
loaded your game and you are back where you initially 
started, go ahead and set and set the optimal prices for 
the appropriate goods. Now SAVE your game so that you don't 
have to keep adjusting those prices. They are optimized and 
you do not have to mess with them for a while. Now go ahead 
and used the save-test-load method to find out the optimal 
price for the rest of the concessions. I should note that 
some of the very expensive items like jerseys, signed bats, 
signed balls, and thing like that(the goods that are sold 
at Jerseys n' Junk) are not very sensitive to price 
changes. Instead of using one dollar intervals when testing 
these goods, use five or ten dollar intervals until you can 
narrow down the range in which the optimal price will be. 
Hot tub tickets seem to have a strange pattern and do not 
follow the trend of other high priced goods. You will just 
have to do a bunch of testing for this one.

Keep in mind also that fans may complain about the prices 
which will be indicated by a red arrow and an angry comment 
about the prices. Do not worry. If the prices that you find 
are the revenue maximizing prices, then stick with that. 
Sure, this may hinder fan support a little bit, but 
remember that there is no substitute for victory. Keep your 
team winning and your fans will forgive high prices. Also, 
as time goes on, the arrow next to that concession will 
turn from red to green. By the end of your first year, 
almost all prices will be maxed out and the arrow will be 
green. In fact, I was able to max out the price on about 
half of my concessions after one month. After about two 
months, I was able to max out the price on about three 
quarters of the total concessions which makes testing much 
faster. By the All Star game, I had maxed out prices for 
every concession except for beer.



PARKING PRICES
This is a tough one. The reason why it is so tough is 
because the revenue data that you get for different prices 
is so volatile that it is almost impossible to nail down an 
optimal price. Therefore, my advice is to set the highest 
"green level" price. The green level price refers to the 
little arrows that appear next to the price of concessions 
and such. A red arrow means that the price is too high for 
most consumers, and a blue arrow means that the price is a 
real bargain. A green arrow means that the price is in the 
normal range. As the season moves on, the top green level 
price will increase, so just check in once in a while to 
see if the top green price has been raised.

Finding optimal parking prices is very difficult because 
the revenue as a function of price varies tremendously. For 
those of you who are familiar with statistical lingo, there 
is very high variability around the mean. Keep in mind that 
at the start of the season, you are not going to be selling 
out the stadium. This means that the parking lots will be 
only partially full. However, once your stadium begins to 
fill up to capacity, then the parking lot will also begin 
to fill up as well to capacity as well. Once your stadium 
begins to consistently sell out, then the variability will 
decrease as well.



ADDING VENDORS
As more and more fans come to your park, the lines at food 
and drink stands will get longer. The longer people have to 
wait, the less concessions you are actually selling. In 
other words, you are not supplying enough to meet demand. 
This is an important concept because if the price of some 
concessions is maxed out, then price increases can no 
longer increase revenue for that section. You have to 
increase the quantity sold. The way to do this is to add 
more vendors at strategic times. First, let me explain how 
vendors earn more money for you. Each vendor that you will 
add will act like a perpetuity. A perpetuity is a type of 
investment(sold mostly in Great Britain) whereby a borrower 
will pay you a fixed amount of cash every year for an 
infinite number of years. The value of a perpetuity is PV = 
C/r, where PV is the present value, C is the annual cash 
flow and r is the interest rate. To illustrate, suppose 
that the market interest rate is 10% and you put $100 into 
a bank account. Every year, the bank will pay you $10. If 
you withdraw that money and wait another year, the bank 
will pay you another ten dollars. If you do this year after 
year, the bank will pay you $10 year after year. This game 
treats the addition of new vendors in almost exactly the 
same way. However, instead of a 10% interest rate, the 
interest rate in this game is about 1%. This rate, however, 
is not a yearly rate, it is a daily rate. When you add a 
new vendor at just the right time, You will notice that 
your cash flow will increase by an amount equal to 
approximately 1% of the total cost of the vendor. In other 
words, if you add a new vendor at a cost of $1,000,000, 
then your cash flow will increase by $10,000 for every home 
game. 

As I was mentioning, the addition of a new vendor has to be 
strategically timed. So how will you test whether the time 
is optimal? That's right, it's the old save-test-load 
method. THIS IS THE LAST TIME YOU WILL USE THE SAVE-TEST-
LOAD METHOD. Whew! The best time to save is the day before 
a home stand. The reason for this is because if it really 
is the right time to add a vendor, then you want to capture 
as much of that new cash flow as possible. You should have 
first tested for optimal ticket prices and concession 
prices, in that order. SAVE your game on the day before a 
new home stand. On a piece of paper, draw several columns. 
In column one, write down the name of the vendor along with 
the number of existing vendors. In column two, write down 
the revenue earned to date for that particular vendor (By 
the way, test one vendor at a time. Also, vendors have 
their own set of financial data, so this information is not 
coming from concession data). Now simulate the home game. 
Check out the new revenue earned to date figure and write 
that down in column three. LOAD the game. Now add one 
additional vendor. Pick any one of them that you want to 
test. Now simulate the home game again and write the 
revenue earned to date figure in column four. If there is 
no significant difference between column four and column 
three, then you should not add that vendor. This is 
indicating that demand has not increased, so you do not 
need to meet it with additional supply. If, however, the 
revenue earned by that set of vendors increased by one 
percent (or more) of the cost of the vendor, then you 
should add the vendor. This is an indication that demand 
for certain concessions has increased or is not being met 
by current supply, so the new vendor is filling the excess 
demand. Just keep doing this for different vendors and see 
how many you can add within reason so that you are 
supplying any excess demand. Some vendors are relatively 
cheap, and it may be difficult to spot increases in cash 
flow to that vendor. For instance, a vendor that costs 
$100,000 should yield, approximately, an extra $1,000 per 
home game. 

The obvious question is "Should I save up for the really 
expensive vendors to add a lot of cash flow or should I 
slowly build?" My answer is that the choice is up to you. 
You will have to make that choice based on your current 
financial situation, but you should always keep an eye on 
your cash-on-hand figure. One good way to go about this is 
to take out an additional loan to finance the purchase of 
the most expensive vendors. This is advantageous if you are 
just starting out your franchise. You should have taken out 
a loan to finance some purchases when you just started your 
franchise, which means that you have room for an additional 
loan. If you notice that adding a Jerseys n' Junk will 
increase your cash flow early in the first year of your 
franchise, then take out a new loan (while following the 
rules of banking explained earlier), and buy that vendor. 
This will barely disrupt your cash-on-hand, and you have 
just increased cash flow. I do not recommend doing this 
after your first or second season. The reason is that you 
will have built up sufficient cash-on-hand to comfortably 
finance the addition of any new vendor and you will not 
need to bother with extra loan payments. Ultimately, the 
rule is that you should add vendors whenever possible, just 
make sure that your financial situation can handle it.

Let me also note that the best time to add the most 
expensive vendors is as close to the start of the season as 
possible. The reason for this is because of the interest 
rate. As I noted, the return on your investment should be 
about 1% per home game. This also means that the annual 
return is 82%! This means that when you add a Jerseys n' 
Junk that costs $10,000,000 at the start of the year, your 
investment will have returned $8,200,000 at the end of the 
year! Add the most expensive vendors when you can, but the 
absolute best time to do it is right at the start of the 
second, third or fourth season and beyond. This way, you 
can capture all of that return.

As the season moves on, and you check up on your franchise 
progress, you may notice that your fans are complaining 
about long lines to buy concessions. If they are saying 
this in the middle of a home stand, or near the end, then 
just wait until the start of the next home stand to run 
another test. If your financial situation allows you to do 
so, then you should be testing vendors at the start of 
every home stand, regardless of what the fans say. If your 
tests show that adding another vendor does not add more 
revenue right away, then don't add it. If an additional 
vendor is profitable, then add it if you can. My advice on 
dealing with fans is that you should not be reactionary to 
the comments of fans. If an investment in an additional 
vendor is profitable, then do it. If it is not profitable, 
then don't do it. Keep in mind also that the absolute 
maximum number of a particular type of vendor that you can 
have is 30. That's why you can't add any more ice cream, 
soda and peanut guys to roam the stadium, but there should 
be plenty of room to add more food stands, Jerseys N' Junk, 
etc. 

You may also notice that even when you add an additional 
vendor, your balance sheet may not show the revenue 
increase that you expect to see. For example, if adding an 
extra Jerseys N' Junk shows that you can earn an extra 
$100,000 per home game, that extra revenue may not be 
reflected in the net revenue change that you get from 
playing a home game that same day. I am not sure why this 
is, but my theory is that it may take a few weeks for "the 
market to clear." It may take some time for the new supply 
to equal demand, but trust me, you will see those profits 
by the end of the year  



ADDING SEATS
In MLB 2005, I found it impossible to totally sell out any 
seating section when prices were maxed out. In my 
experience, after building fan loyalty and becoming a 
winning franchise over a few seasons, the highest that I 
could get prices to go (if I wanted to sell out any 
section) was the maximum price minus one or two dollars. I 
do not know yet if this is the case for MLB 2006, but I 
will find out and I will post that result. Anyways let's 
just work from MLB 2005 rules for now. Once I did find the 
highest optimal price, I was able to sell out every seating 
section in Safeco Field. This is the optimal moment to 
begin adding new seats. At this point, the stadium is 
filled to capacity and you can no longer generate 
additional ticket revenue by raising prices. Also, the 
increase in demand for concessions will start becoming 
stagnant which means that your rising cash flow will start 
to level off. Stagnant demand means that you will find less 
opportunities to add vendors. First of all, you do not 
necessarily need to sell out EVERY section. However, the 
price should be maxed out or nearly maxed out, and that 
section should be consistently selling out. Now start 
adding new seats. The amount to new seats is up to you. You 
can add the maximum number of seats for that section or you 
can do it 50 seats at a time. I prefer to add 100-200 seats 
at a time so that I can check to see if that section is 
still selling out after the new seats are added. If the 
section is not quite selling out after adding the new 
seats, then I can wait a few weeks until the section is 
selling out again. As you keep adding new seats, the price 
may simply be too high to sell out a section where seats 
have been added. The case may be that at a price of X, only 
Y% of the seats can be sold. At that point, it may pay off 
to drop the price by one dollar to try and pack a few more 
fans in. 




--------------------------------------------------------
End of the Season Business Management
--------------------------------------------------------
By now, you should be on the way to being a successful 
franchise owner. Once the playoffs are over, or just about 
over, there are a few things that you should know about and 
take care of.


SHARED REVENUE TAX
The biggest expense in the game is the cost of the shared 
revenue tax. Here is how it works. Every team will have a 
percentage of it's profits taxed by the league. All of the 
taxes will then go into a giant pool where the league 
divides that money equally among every team by giving 
everyone an equal rebate. Teams that were very unprofitable 
will get a net gain from the shared revenue tax because the 
rebate will be higher than than their tax. However, the 
most profitable teams (i.e. yours) will be hit HARD by this 
tax because the tax that you have to pay will be higher 
than the rebate. This means that you will start out the 
next season deep in the red since the money is paid on the 
first day of next season. Keep in mind too that the money 
will come out of your cash-on-hand. This means that you 
should avoid spending a lot of money in the last month of 
the regular season so that you will have plenty of cash-on-
hand to pay the tax. You may need quite a bit since the tax 
may end up putting you tens of millions of dollars in the 
red to start next season. This is where your primary 
advertising and TV deals come into effect because the 
income from the contract is paid to you at this time, and 
this income can soften the blow from the tax.

It's usually quite shocking to see yourself so deep in the 
red to start the season, but that's just because you are 
looking at the balance sheet for the season. A balance 
sheet is just a snapshot of your cumulative profits for the 
year. Well, on the first day of the season, you have not 
earned any profits for the year. It does not matter how 
much your balance sheet shows at the end of the year 
because once the calendar flips to 2006, 2007 and so on, 
your balance sheet will be reset to zero. The size of your 
ending balance sheet will not soften the blow from the tax. 
Don't worry. Just keep at it and your profits per home game 
will put you in the black some time before the all star 
break. By the end of the season, you should be even MORE 
profitable than you were last season. Also, the hit that 
you take from future shared revenue taxes will be lessened 
just by the fact that other teams are becoming more 
profitable as well. This means that the total amount of tax 
revenue that the league collects will keep growing, and 
thus the rebate that you get will rise as well.



RESIGNING PLAYERS
This section is absolutely distinct from the RESTRUCTURING 
PLAYER SALARIES section. The reason is because once the off 
season begins, you have the opportunity to resign players 
without releasing them first. You can just offer a player a 
new contract and he will either accept or reject. This is 
great because unlike the release-resign method that shrinks 
your available payroll, tendering new offers to your 
players here can INCREASE your available payroll. This is 
because you are not releasing your players, and therefore, 
you will not be obligated to pay the player's remaining 
salary on top of his new salary. Previously, I recommended 
that you use the release-resign method only for your best 
players who are at the end of their contracts. Now, I 
recommend that you resign all of the players that you want. 
All of my best players were signed to long term contracts 
and I did not have to worry about them anymore. At the same 
time, my available payroll was increasing because players 
were accepting lower salaries in the immediate future in 
exchange for higher salaries in the future. By that point, 
a franchise will be so profitable that those higher 
salaries can be easily absorbed. Also, the increase in 
available payroll allowed me to make some key trades that 
solidified my team as truly elite.

**********************
****Glitch Warning****
**********************
Two very odd glitches happen in the off season that I 
cannot figure out how to fix. They are minor, but you 
should be warned about them. 

The first glitch is one that makes any type of trade 
impossible. When you attempt to trade players, the other 
team's interest will be set at zero, no matter what trade 
you offer. This is a glitch because almost all trade offers 
will garner some interest, even if it is low. If any trade 
that you offer garners no interest, then there is a glitch. 
Exit without saving, and start the off season again. Then, 
try to make the same trade offer(s) again. If there is some 
interest, then you have overcome that particular glitch.

The second glitch involves player contracts for other 
teams. In the game, you can work player options, club 
options, or mutual options into player contracts. In my 
personal example, at the end of the 2005 season, I wanted 
to get two more starting pitchers. I had my eye on 
Dontrelle Willis of FLA and Ben Sheets of MIL. Both players 
were at the end of their contracts, and they were in 
negotiations with their respective teams, so I had to wait 
until their negotiations were over. After the amateur 
draft, Willis was resigned to a two year deal and I was 
able to trade for him. Sheets, however, was not signed and 
remained unsigned. In fact, Sheets remained unsigned even a 
week into the season but was nonetheless still playing. 
This is significant because you are not allowed to trade 
for a player that is not officially signed to a contract. 
This happened with several players who were unsigned, and 
yet they were not free agents. Therefore, I decided to pass 
on trading for Sheets and I went for Roy Halladay from TOR, 
who is very similar to Sheets in terms of stats. I do not 
know why this happens, but just keep in mind that this may 
happen.



TRADING PLAYERS
Here is a great opportunity for you to get the player that 
you really want in order to round out your team. I decided 
to list this section after the RESIGNING PLAYERS section so 
that you can loosen up your payroll restriction and, thus, 
give you more room to get the players that you want. The 
only thing that I have to say about trades is that you can 
make trade rather easily. In my franchise, I was able to 
trade a minor league SS for Nomar Garciapara, Randy Winn 
for Dontrelle Willis, a minor league catcher for Joe Mauer, 
and two minor league pitchers for Roy Halladay. At the 
first chance you get, resign them to long term deals and 
congratulate yourself.



SETTING NEW ROSTERS
This is not really a business aspect of the game, but I 
would like to address it. Since you have been making 
trades, signing free agents and such, you will have to put 
together three legitimate rosters, and each roster must 
have 25 players. If you do not have the correct amount of 
position players and pitchers, the game will not allow you 
to proceed. To deal with this situation you should 
determine how many players you will need at each position. 
Let me give you my suggestion for what players to have:

POSITION    #    # for entire organization
C           2       6
1B          2       6
2B          2       6
3B          2       6
SS          2       6
OF          4       12
SP          5       15 
RP          5       15
CP          1       3

TOTAL       25      75

This will ensure that your MLB, AAA, and AA clubs will all 
have valid line-ups, starting rotations, relief squads and 
the proper number of pitchers and position players. Keep in 
mind that you will have to set the line-ups manually. Also, 
if you have too many players at a single position(and by 
implication, you will not have enough players at another 
position), then release a few of them and then then sign 
some cheap young players to fill out your minor league 
rosters. I think that this is very important for your MLB 
team because you probably noticed how your players energy 
falls if they play a lot. It's just a good idea to have 
back up players at every position in order to give your 
guys a break once in a while. You will also notice that(If 
your team is an American League team), that DH's tend to 
keep their day-to-day energy levels high. One little trick 
that I like to do is to have my two first basemen split 
time between DH and 1B. For the Mariners, I play Sexon at 
1B and Bucky Jacobsen at DH when I hit against right handed 
pitchers. Against left handed starters, Sexon gets to play 
at DH and Jabobsen plays at 1B, since Jacobsen is a first 
baseman to begin with. This keeps them quite fresh relative 
to the other players.  


AMATEUR DRAFT
The only reason why I added this section is because you may 
have a franchise goal that orders you to draft an All-Star 
potential player. Well, here is the time to do it. Some 
people may make the mistake of thinking that choosing the 
player with the highest overall skill rating is the way to 
get such a player. WRONG! If you want to nab an All Star 
potential player you have to look at the player's potential 
rating. The way that you do this is to move the cursor over 
any individual player and check out the player's stats. You 
will not be able to see a scouting report on the player, 
but you will be able to see several ratings. Players are 
given a letter grade for many of their skills like power, 
contact, speed, and other such things. Each skill is given 
a letter grade from A to F, with A being the best and F 
being the worst. There is a category for all players called 
"potential". An All-Star potential player will have a 
potential A or B. An A will almost certainly yield such a 
player, an a B will give you a very high chance of getting 
such a player. 


LOOSE ENDS
There are some things that you may want to take care of. 
For instance, the end of your second season would be a good 
time to pay off the balance of that big loan that you took 
out at the very start of your first season. By this time, 
you should have a hefty amount of cash-on-hand to 
comfortably absorb the shared revenue tax, pay off your 
loan and plenty of money left over. The main reason why you 
should do this at the end of the second season is because 
this is one way to soften the blow from the shared revenue 
tax. Paying off the loan softens the blow because you will 
not be making loan payments during the off-season. 

Also, things like training facilities, rehab facilities, 
and the quality of the field deteriorate over time. I like 
to spend a few bucks to refurbish these things both now and 
on the first day of the season. Doing so at both points is 
a relatively low cost improvement, and it keeps everyone 
happy. This is just my preference, but it is up to you.




--------------------------------------------------------
Conclusions and Final Words
--------------------------------------------------------
After days and many hours of testing, testing, and more 
testing, I hope that this FAQ is worthy. I am still trying 
to find out some of the dynamics of certain aspects of the 
game as well as trying to note the significant differences 
between MLB 2006 and 2005. A lot of the conclusions that I 
reached were based on my knowledge and memory of MLB 2005, 
so I spent a lot of time testing to see if past rules still 
held up. This is by no means the final version of this FAQ, 
and I hope to keep it up to date as I (and all of you) 
begin to notice certain dynamics that were missed in order 
to put forward the best information possible.

Just one last thing about putting these techniques into 
action. Don't expect to be swimming in a pool of money 
right off the bat. These are all techniques that will help 
you increase your cash flow over time. If you make sound 
preseason management decisions, then your absolute per game 
cost should be relatively constant over the course of time, 
even for several years. I started out earning approximately 
$800,000 for my first home game(this figure will certainly 
be different for you), but I was earning approximately 
$1,350,000 by the end of April. At that point, I had done 
only one price test by that point. At the end of my first 
full franchise season, I was earning approximately 
$2,800,000 per home game and I finished that season with 
$94,000,000 in cash-on-hand. 

The goal of this FAQ was to give you the tools to help you 
keep your revenue rising above your relatively constant 
costs, so you will notice great profits in time. At first 
your revenue will be low. Just be diligent and patient. 
Profits will come.



--------------------------------------------------------
Reader's Q&A
--------------------------------------------------------
If you have a particular question or problem with my profit 
making strategies, then e-mail me and I may post your 
question here along with the answer.

Q: How do you know which sections are selling out and when 
they are.  I wasn't able to find anything about daily 
attendance levels...
A: To find attendance data, go to Business Management
-> Facilities -> Stadium Updates -> and then use R1 to 
toggle to the Seating information. The data on that screen 
has stats that show Season Section Attendance.

Q: Can I change teams during franchise mode?
A: No. Once you choose a team, you are stuck with that 
team. This game is not like the NCAA Football games where 
great success allows you to consider offers from other 
teams. You are in it for the long haul.


--------------------------------------------------------
Credits and Thanks
--------------------------------------------------------
If you have given me a tip or helpful suggestion that makes 
this FAQ better, then I will give you your credit here:

-first and foremost to 989 studios for making a great game 
as well as to gamefaqs.com for posting this FAQ.

-theaub for reminding me to include the dangers of too many 
promotional giveaways as well as reminding me to stress 
diversity and variety in promotions and advertising.



--------------------------------------------------------
Contact Information
-------------------------------------------------------
If there is an aspect of profit building that I have 
ignored, or if you have a question, suggestion, correction, 
a tip, or an alternative strategy, then e-mail me at:

kim@rodieck.com


--------------------------------------------------------
Legal Stuff
--------------------------------------------------------
This may be not be reproduced under any circumstances 
except for personal, private use. It may not be placed on 
any web site or otherwise distributed publicly without 
advance written permission. Use of this guide on any other 
web site or as a part of any public display is strictly 
prohibited, and a violation of copyright. 

Copyright 2005 Mr. Kim Dalton Rodieck.

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