On Sunday, I talked about how inflation affects off-season trading. Today, I'm going to review how inflation works on a league-wide basis. I'll once again use my American League as a guideline.
Last year, 116 players were frozen across 12 teams, leaving 160 players to be drafted. Those 116 players were frozen at a combined salary of $1373. According to my values, this frozen pool of players were worth $1790.
Therefore, in the auction, the league had $1747 to spend on $1330 worth of talent. This is your inflation (Money available/bid limits of available talent).
1747/1330 = 31.35% inflation.
To re-iterate, this means that a player with an uninflated $30 bid limit should now go for $39 at par. A $10 player should go for $13, and a $1 player stays at $1. What rounding doesn't take care of, real life does: that is to say, the league will spend almost all of its remaining cash on Auction Day.
How that money was distributed will be the subject of my next post. As anyone who has played in freeze leagues long enough knows, all freeze lists are not created equal. In carryover leagues, there is often one team stacked to the gills for the upcoming season. I'll take a look at that, and show you how to use inflation to project how your team stacks up in 2007.