Tuesday, March 06, 2012

Calculating Inflation (2012)

I get this question every year:
i would like to know if it is correct to calculate inflation by doing the following: after rosters are frozen then add up all the money frozen, place a bid value on all players to be available to be drafted and then after adding these together subtract from the $3120 that can be spent at the auction, then divide the remainder by bid value of all player available to be drafted. ie. if x= $ frozen and y= $ allocated to available players at auction; inflation is then 3120-(x+y) divided by y"
I don't even take that many steps. The formula I use to calculate auction inflation is:

$ Left to Spend/$ Value of Players Available---

Last year in my American League, $1,315 in salary was frozen on players that I estimated were worth $1,707. This meant that there was $1,805 left to spend on $1,413 left of talent. So...

$1,805 Left to Spend/$1,413 $ Value of Players Available

equals 27.7% inflation rate.

That's the raw math. As far as theory goes, I've posted a lot of articles over the years with more of the nuance of inflation.

Adjusting for specific conditions in your auction.

Why pushing players to "inflation par" is a bad idea.

Pushing inflation dollars toward the top (inspired by Eugene Freedman).

Separate hitting/pitching inflation.

Projecting your team value using varying inflation rates.

Coping with super high inflation.

1 comment:

zucchiniboy said...

Thanks Mike. Forwarded it on to Gypsy Soul.

On a different note, can you post your formulas for calculating earnings again? Or does it stay the same from year to year?