Operating Costs

1) Player salaries are typically the greatest expense for a professional sports franchise. Students use their revenue and cost projections to budget for player salaries. Each franchise will use their budget to assist with Selecting Players: The Free Agent Auction. The auction will occur outside of the EconFantasy.com site, and the commissioner will enter each franchise's total payroll for the season. The system will split the amount over the 13-period regular and post season and enter the amount into each franchise's financial statement. Each owner should realize that throughout the season, as franchises trade players, a franchise's payroll may change.

2) Team Administration is an expense that every franchise must pay to manage a front office. It is a fixed expense, and each team will pay the same administrative expense for the fantasy season. This is a fixed $500,000 per week per franchise. The commissioner can change this number at the start of the season.

3) Game-day expenses (vendors, concessions, and parking) is a fixed expense, and each team pays the same game day expenses for each home game during the season. This is a fixed $500,000 for each franchise when they are a home team. The commissioner can change this number at the start of the season.

4) Travel expenses is a fixed expense that a franchise pays to travel for an away game. Each team will pay the same travel expense for each away game during the season. This is a fixed $300,000 for each franchise when they are a visiting team. The commissioner can change this number at the start of the season.

5) Trades and Deals Costs should not be budgeted for, but it may be a cost for a franchise during the season. All franchises will have opportunity to trade players and include cash as a component of the deal.

6) League Fines - The commissioner can fine any franchise any time for any reason.

7) Interest Expense - A team that is losing money will have to pay the Commissioner's Bank and Trust 0.4% of the losses (losses * 0.004) in the next period. A line on the financial statement will be included that calculates this expense if the franchise's total profits were negative in the previous period.