Chapter 16: Finances

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Chapter 16: Finances

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CHAPTER 16: FINANCES

16.1. General Information
One of your goals as GM of an OTHL franchise is to make sure the franchise remains financially sound. All teams started out with $45,000,000. In the event of League Expansion new franchises would be awarded $45,000,000 start up funds. Franchises gain money by selling tickets and they must sell enough tickets to pay for their expenses. Team expenses include but are not limited to pro and farm payrolls, coach salary, prospect fees and more.

16.2. SALARY CAP & SALARY FLOOR
The salary cap in the OTHL is the same as the NHL salary cap, and adjusts year to year. Salary cap expense is pro salaries only. During the off-season there is no salary cap in the OTHL. The OTHL cap is then activated at the first day of the OTHL regular season. If a team fails to meet the salary cap requirement at the start of the season, there are penalties. The OTHL also have a salary floor which all teams must be over after the regular season. The salary cap and the salary floor are both announced in time for the start of the regular season. If the caps are not announced at the time of the regular season, then the league will hand out no fines. (the Sim software will not run if a team is over or under the cap, thus the severe penalty structure.)


16.2.3 Exceeding Salary Cap Penalty
Cap Penalty, Start of Regular Season
If a team is over the cap at the first day of the OTHL regular season then the following penalties apply:
1. Team is fined $10,000,000
2. Highest paid player released (continues until team is under cap)

Cap Penalty, During the Season
If a team goes over the cap after the start of the regular season but before the end of the playoffs:
Day 1 – Team is fined $2,000,000
Day 2 – Team is fined $3,000,000
Day 3 – Team is fined $5,000,000
Day 4 – Highest paid player released (continues until team is under cap)

16.2.4 Falling Below Salary Floor Penalty
Floor Penalty, Start of Regular Season
If a team is under the floor at the first day of the OTHL regular season then the following penalties apply:
1. Team is fined $10,000,000
2. Loss of 1st Round Draft Pick
3. If issue is not solved within a reasonable amount of time the GM is subject to dismissal.

Floor Penalty, During the Season
If a team is under the salary cap floor after the last day of the regular season the team is fined $10,000,000. Currently, the league allows teams to be under the floor during the season because the sim software automatically subtracts injured players from the salary cap calculation.

16.3. Generating Revenue
Teams will earn revenue by selling tickets to their games. The amount a team earns depends on the arena size, attendance, and ticket prices. Ticket prices can be changed any time during the regular season. Attendance will be based on whether a team is playing well and if the team has any star players for the fans to watch play.

16.4. Teams in Financial Distress
A team in financial distress is one that may be in danger of becoming bankrupt. The BOD will be keeping a close eye on finances and if they see a GM who is not handling their money wisely they will be warned to correct the problem. If the problem is not getting corrected or starts to get worse then the GM at fault may be subject to dismissal.
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