Thursday, February 18, 2010

Inflation and Money on the Table

In one of my last posts, I wrote a lot about inflation but didn't really address Gypsy Soul's question.
I also was asking how the anticipated money to be left on the table after the auction factors into ones calculations of inflation prior to the auction.
The point I was trying to make was that if you take care of everything else in terms of your valuation and your spending that this shouldn't be a problem.

In most leagues I've been in, worrying about money that will be left on the table shouldn't be a big problem. Most experienced owners will spend all of their money or - at worst - leave $2-3 on the table. Five or 10 dollars left on the table by the entire league won't have a significant impact.

If, on the other hand, your league consistently leaves $30 or more on the table, you might want to make an adjustment to your auction.

My advice would be to calculate your auction values to equal the amount of money left to spend in your league and then built this additional spending latitude into your auction as you go along. Instead of trying to bid par or one dollar under par, you should be able to bid $2-3 under par per player depending upon how much money is typically left on the table in your auction.

I'd also try to build a balanced team and avoid any kind of Stars and Scrubs approach. If there are two or more owners sitting in the endgame with a pile of money, you're not going to have your pick of the $1 players you want. This holds particularly true on offense. Try to buy as many everyday players as you can.

Of course, if teams aren't spending their money, it might very well mean that they're skimping on the stars in your auction as well. You want to be more conservative with the stars you're buying, but you don't want to let too many deep bargains fly off the board early. If you do, you might very well be one of the owners with money left on the table in the end.

4 comments:

Gypsy Soul said...

Many thanks, Mike.

Anonymous said...

I really like when people are expressing their opinion and thought. So I like the way you are writing

TMU said...

I think the comment that people are cheating the stars is well-taken. We're a 4x4 league, and the money has (slightly) flowed out of the stoppers the last few years, and it's certainly not going to the stars, so where's it going? To the middle class, it seems to me. Everybody thinks they'll get a guy for $14; he goes for $17.

When you're putting your bids together, and you look at a given bid for a given player, and EVERY team in the league would gladly pay that price, that price is too low.

Anonymous said...

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And according to this article, I totally agree with your opinion, but only this time! :)