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Slug5373
Joined: 12/23/2014
Posts: 376

Inactive

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What exactly are franchise fees? I didn't have any last season, and now I have compiled $500,000 in the first economic update.
Yuri84
Joined: 10/14/2014
Posts: 639

Apple Valley Raccoons
IV.4

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I think you pay them once you get promoted to the higher division.
PrivateSnowflake
Joined: 01/06/2015
Posts: 1167

Bloomington Thunder
Legends

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The franchise fee takes effect in division 4 and up. It is another way to keep cash availability in check, to help keep the playing field in check. Otherwise all the (expensive) talent would end up horded in upper leagues, leaving a team promoted from a lower division virtually no chance to move up or maintain, as such team would be playing powerful clubs lowering morale and thus fan attendance and merchandise sales for the weaker team. Sending that club back down to lower tv, radio money, and attendance totals, while a club already in higher league would continue to widen the gap in terms of cash earned, making money available to sign or keep the best players. In theory, a rich club could let players develop in the lower divisions then just sign them when the lower division club could not afford such a player anymore. You could even stock there minor league team with 2 mil players.

Boy that seemed long winded. I hope it made sense.
Yuri84
Joined: 10/14/2014
Posts: 639

Apple Valley Raccoons
IV.4

Broken Bat Baseball
I've paid 5 million of franchise fees in 2020, being in tier 5 league, so it certainly doesn't attribute to tier 4 leagues and higher. And in 2021 I didn't pay any still being in tier 5.
newtman
Joined: 11/02/2013
Posts: 3343

Inactive

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@Yuri, that is because Steve tweaked them so that LL 5 hasn't had to pay them starting in 2021. When they were originally put in, you are correct the LL 5 fees existed at 500k per week or 5 mil for the season. That is irrelevant info now following the change.
Slug5373
Joined: 12/23/2014
Posts: 376

Inactive

Broken Bat Baseball
@Yuri84

I was literally in the exact same situation. I paid $5 million in fees two seasons ago and none last year. Now that I moved up, I didn't know what the difference was.

Thanks everyone!
MukilteoMike
Joined: 08/09/2014
Posts: 3294

Inactive

Broken Bat Baseball
Wow. I've done some further analysis and projections for my team and I'm fairly confident I'm going to lose at least $10 million this year, half of which will be due to the franchise fees. That's harsh.


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