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For simplicity, I would say Franchise Networth would be calculated once per year by an independent auditor and then that's the value for the rest of the year.
Also, I was thinking about some of the points that you brought up about trades and I do think that it could pose a problem. Like if a poor team wanted to trade a pick to a rich team, they could bid the low amount, win the player then trade it to the rich team for a little more money but less than the rich team could have picked the player for so this could be avoided by simply saying that all trades of players on rookie contracts, this difference must be paid to the league at the time of the transaction on a pro rata basis. For example, two teams, one worth 3 times as much as the other. The poor team won a bid for a player for 10 million and then traded him to the rich team on draft day. The rich team's equivalent winning bid would have been 30 million but only 10 million was paid, so 20 million must be distributed to the other 28 teams from the two trade teams. You would pro rate the twenty million based on how much of the traded player's contract was still remaining.
1 month ago on DT Mailbag: Twitter edition
You bring up some really good points and some unforeseen issues. I'd bet that there are some more unforeseen issues as well. Here's my opinion on some of your points.
1) I'm not sure what you mean?
2) No cap on the bids, you are right. The money comes from the franchise's pockets, from the same place that the Luxury Tax comes from. But remember, since the money is redistributed after the draft, some teams will make money, some will lose. Basically how much you bid - the average winning pick. I do agree that it would be tough to get people onboard with a radical idea like this but that doesn't discredit the idea.
3) I think you should be able to trade your pick, cash or a combination. You shouldn't have to weight that because the cash will just figure into the networth of the receiving franchise. The pick itself is just a right to bid again, it's not worth that much. But I think your point is good and I'm not sure what the implications truly are.
To fix tanking, here is an idea: Do an auction with 5 simple rules:
1) Weight the auction bid by the franchise value, for example imagine if the Knicks are worth 2 times as much as the Thunder and they are bidding against each other for a player, if the Thunder bid $3 million, the Knicks have to bid more than $6 million, i.e. 2 times what the Thunder bid. And vice Versa, if the Knicks bid $10 million, then the Thunder would have to bid more than $5 million i.e. half of the Knicks bid.
2) When a team wins a bid, the money is distributed evenly to the other 29 teams so if the Thunder bid $29 million for a player and that is the winning bid, then that $29 million is distributed $1 million to each other team.
3) Each team may only win one bid per round and must win one bid per round, the first round will be considered the first 30 picks.
4) When a team wins a bid, they are still responsible for the rookie contract as well and the rookie contract will be sorted by auction amount, i.e. the player who went for the most in the auction will be considered the 1st overall pick, 2nd most will be second pick, etc.
5) Teams can now trade picks and cash that is useable toward future drafts.