One of the questions that people seem to have in relation to fantasy baseball auction leagues is how to calculate inflation. In an auction keeper league, it is very important to understand how to do this with so many players kept for under what their true dollar value is. If you use standard auction cheat sheets for your draft, you are going to miss out on quite a few players because they will go for higher dollar values than what you were expecting them to.
Here is a look at a method for calculating inflation for your fantasy baseball auction.
1. Determine the total possible money that can be spent in an auction. The formula is number of teams multiplied by the salary cap per team. So if you have a $260 cap and 12 teams in the league, then the total possible spend is $3,120.
2. Determine the total cost of the keepers for all teams. For the sake of the example, let’s say the total keepers are worth $1,500.
3. Determine the leftover available money to spend. The formula is to subtract number 1 from number 2 above, so $3,120 less $1,500 leaves us with $1,620.
4. Determine the projected cost of the keepers in a non-keeper league. Let’s say that amount came out to $1,800. We then subtract our total money spend of $3,120 from $1,800 and come up with what our remaining players to buy would have cost us in a non-keeper league, which is ($3,120 – $1,800) $1,320.
5. Determine the inflation rate. We have $1,620 left to spend on players in a keeper league compared to their true auction value of $1,320. If we divide those two numbers, we will then get the inflation percentage of roughly 22.8%
6. Take the projected salaries of the players to buy in the auction multiplied by 22.8% and you now have the new adjusted value for inflation for your auction. So a guy like Albert Pujols at $41 in a regular league becomes $50 in a league with inflation.
Just a few points to make sure your numbers come out right. The player pool and dollar values of the keepers plus the players that need to be bought need to equal out. So if you have 23 man rosters for a 12 team league, you need to make sure you have dollar values for exactly 276 players and the dollar amount comes out to exactly $3,120.
Also, if you are doing the calculations in Microsoft Excel, I would use the ROUND DOWN function to round the dollars down in value instead of up like you normally do in math. That way you aren’t moving up a bunch of players in the $1-$3 range higher. If you are short a few dollars from your total, those will usually get added on to the top tier players, not the ones that are at the bottom.
If you want to get down to a more granular level, you might want to calculate inflation rate separately for hitters and pitchers if you think there is a wider difference in the percentages. The same steps would apply as above, the only difference is you would first need to determine the dollar split between pitchers and hitters. You could use a standard 70%-30% split, or if you are in league that you have played in before, you should have historical data that will allow you go back and calculate the actual numbers.