Loans

Do you guys think teams should be able to take out loans? For example, if a team wants to make a bid on an IFA, and they dont have any money, do you think they should be able to take out a loan and go in debt to get this player. Or they could try to get a new stadium. Of course there will be a maximum amount of money you can take out. And its your team, if you want to go into to debt, you can go into debt.


What do you guys think?

Yes

I say yes, but as with any loan their should be more than just I want the money. The team should state to the league what they plan on spending the money on, the league should then decide if this is going to help this team, make it able to raise the additional revenue needed to rwepay the loan. For example, a loan for a new stadium is much more likely to get approved cause you will see new revenue their from the honeymoon period of a new stadium. Using it to bid on a free agent? Won't see as high of a loan their cause the player won't be able to sell as many tickets as a new stadium would.

Another thought on this, what about setting up a seperate "bank" that has X amount of funds in it. Teams may apply for loans and have to pay it back over X amount of years with interest. Say the bank currently has 1,000,000,000 in it. I wish to build a new stadium at 195 million city pays for 96 million, sponsor pays for 50.3 million my team needs to come up with 48 million. I go to the bank to get a loan since I cannot affoard to do it.

Now the bank offers me three options
A five year loan, a 10 year loan, a fifteen year loan. Each year equals 1 percent of interest.

So the five year loand would equal 48 million(initial) plus 2.4 million(interest)

ten year 48 million plus 4.8 million

15 year 48 million plus 7.2 million.

At the end of each season a payment must be made to the bank If yuour team can't make the full paymenht their will be penalties repayments would look somehting like this

5 year-10,080,000 per year
10 year-5,280,000 per year
15 year 3,680,000 per year

now this is just an example. We could do other things with it like a flucuating interest rate, so that teams paying attention will spot the best time to take out a loan etc, etc.

i ilke the bank. teams should be able to put money in and earn interest too. loans are fine too.

My major concern is the cost/benefit of adding such an option.
If the admins want to really spend their time calculating loans
with interest rates and all of that, more power to you. To me,
it sounds way more complicated and a lot less fun to play. I don't
want to sound like the naysayer, but there is some beauty in
simplicity. *shrug*

-Cinci'

I have to agree with cincy on that

This is also the kind of option that would be easily abused by short-sighted GMs. This is a plan that almost assuredly would result in a lot more Pittsburgh-esque teams.

OriolesGM wrote:

This is also the kind of option that would be easily abused by short-sighted GMs. This is a plan that almost assuredly would result in a lot more Pittsburgh-esque teams.

Agreed 100% with Baltimore here.

Yes, there should be loans.

Actually, it would not be very difficult to set up a loan amortization schedule as an excel spreadsheet that would easily identify the principle and interest payments. Just some cell referencing with a couple formulas, and a league template can be set up in about 10 minutes .

Ok, and that sounds like to me ur volunteering to run it

We should have a "credit rating" system or something... it wouldn't be an opinion or anything... just a score we can get from some financial statistic in the game...

tunit wrote:

We should have a "credit rating" system or something... it wouldn't be an opinion or anything... just a score we can get from some financial statistic in the game...

Well credit rating, as it would relate to this subject, could only be determined from analyzing how "well" a team paid off a prior loan (which the game wouldn't keep track of). I suppose a credit rating system could be implemented, but really wouldn't be effective for another 5 years or so (or whenever loan 1 is paid off).
I think it would be very tedious to try and set up a credit rating system that would cover every scenario. What could you really do? If Team A, makes a loan payment 2-4 months late then the interest rate on their next loan increases by X percent? If Team A defaults on a loan they lose draft rights or something? I suppose it would be something to consider, but certainly nothing to worry about at this point. Maybe implement a credit rating system after the league evaluates how the loan system is working.

At this moment, even with high scores in mathematics classes and all, have no clue how to set up a rating for this league... If its possible I'm all for it, but its probably the only way we can evaluate situations for loans...

What do you mean by setting up a rating to evaluate situations for loans?
What situations are you talking about? Applying for the loan? Making payments on the loan? Defaulting on the loan? Paying the loan off early?
Surely you don't mean all of the above, and more I haven't mentioned.

hoosier31 wrote:

What do you mean by setting up a rating to evaluate situations for loans?
What situations are you talking about? Applying for the loan? Making payments on the loan? Defaulting on the loan? Paying the loan off early?
Surely you don't mean all of the above, and more I haven't mentioned.

Good luck

If we do go more in depth with this I would be willing to help out on it. While not banking my major in college was business so i have a little knowledge on it.