[USML Announce] USML - FAAB bidding

Tue Mar 25 12:35:19 EDT 2008

Thanks for all the guidance guys.

I'd really like to keep our "eBay" style bidding as this makes it more  
difficult to create asterisk players.

-- Rich

On Mar 25, 2008, at 10:52 AM, jhwinick at aol.com wrote:

> A few important points/questions:
>
> 1.  The system awards the player to the highest bidder.  During the  
> last few years we have reduced the winning bid to $1 over the next  
> highest bid.  That requires extra work for the commissioner.  Are we  
> going to continue to use that system?
>
> 2.  If we do use the same system as the last few years, it is  
> important to note that the "refund" isn't effective until the  
> following week.  The system will disregard bids once you've  
> exhausted your budget.  So, if you make a high bid on one player and  
> you win, you may exhaust your budget for the week, even if you are  
> entitled to have your FAAB replenished for the following week.
>
> 3.  Since we don't yet know how well this will work, I would  
> recommend that for the first couple of weeks that people send a copy  
> of their FAAB bids to usmltrans.
>
> 4.  Contingent bids are now treated differently than they have been  
> in the past.  It used to be that if a team bid on only one player,  
> that team would have priority over any team that placed a contingent  
> bid on the same player, even if the contingent bid was higher.  That  
> is no longer the case.  The logic of the system is explained in  
> detail in the information provided by Mark.
>
> Jeff Winick
>
>
> -----Original Message-----
> From: Blocker, Mark B. <mblocker at Sidley.com>
> To: announce at usml.net
> Sent: Tue, 25 Mar 2008 9:35 am
> Subject: [USML Announce] USML - FAAB bidding
>
> This is straight from the website, which no one bothers to read:
> What is FAAB (Free Agent Acquisition Budget)?
> Answer
> FAAB stands for Free Agent Acquisition Budget. Every add/drop is  
> granted via a blind, bidding system that is processed automatically.  
> Each time an owner has an add/drop processed, they will be placed at  
> the bottom of the FAAB order. If there is a tie for a player, the  
> FAAB order is used; the owner that is higher in the list will  
> receive the player and be moved to the bottom.
>
> You can also select the Commissioner FAAB approval process. Free  
> agents are still picked up via a blind, bidding system, but it is  
> processed by the commissioner and not automatically. The  
> Commissioner will go to the Transactions Request page to process the  
> winning bids.
>
> If you select to use either of the two available FAAB options, each  
> owner will go to the My Team/Add-drop page and select the players to  
> be added and dropped then a bid is entered. The team with the  
> highest bid for that player will be awarded the player and the bid  
> value subtracted from their budget.
> Example #1
> Team #1 as listed in the FAAB order inputs a request for three  
> players:
> Player "a" bid of $15
> Player "c" bid of $10
> Player "b" bid of $1
> Team # 8 as listed in the FAAB order inputs a request for three  
> players:
> Player "a" bid of $25
> Player "c" bid of $10
> Player "b" bid of $1
> The system looks for the player that has the highest overall bid  
> placed on him. In this case, player A would be the first player  
> auctioned. The system would then search through every bid submitted  
> for Player A. The team with the highest bid for Player A would win  
> that player. In this example, team 8 would be awarded Player A.
>
> The FAAB process will continue in this manner. The system will seek  
> out the player that has the highest overall bid for him. Player C  
> will be the next player auctioned. If there are 2 equal bids for the  
> same player (c), the system will award the player to the team that  
> is highest on the FAAB order. For Example, player C will be  
> auctioned second and awarded to Team #1 because they were ahead of  
> Team #8 in the FAAB order (remember Team #8 would be at the bottom  
> of the FAAB order because the won the previous auction.)
> Finally, player (b) will be auctioned last and awarded to Team #8  
> because they are higher on the FAAB order (Team #1 was dropped to  
> the bottom of the FAAB order because the won the previous auction).
> Please note: If a team is dropping the same player for multiple bids  
> and that team wins a bid all subsequent bids involving "same"  
> dropped player become invalid.
> Example #2
> FAAB Budget is $100
> The remaining budgets for the bidding teams are as follows:
> John's Team $55
> Sam's Team $80
> Joe's Team $40
> Larry's Team $65
> John is listed #1 in the FAAB order and his FAAB bids are:
> Player A bid of $30 dropping Player X
> Player F bid of $30 dropping Player Y
> Sam is listed #3 in the FAAB order and his FAAB bids are:
> Player B bid of $20 dropping Player M
> Player C bid of $15 dropping Player M
> Player D bid of $5 dropping Player O
>
> Joe is listed #4 in the FAAB order and his FAAB bids are:
> Player C bid of $10 dropping Player R
> Player E bid of $10 dropping Player R
> Larry is listed #7 in the FAAB order and his FAAB bids are:
> Player F bid of $5 dropping Player T
> Player D bid of $5 dropping Player V
> The first player to be auctioned is Player A for $30. Player A is  
> auctioned first because $30 is the highest overall bid. John has  
> Player A prioritized as his first bid. John wins the bid for Player  
> A for $30. John drops to the bottom of the FAAB order and $30 is  
> subtracted from his FAAB budget.
> Player F would not be auctioned at this time because John's $30 bid  
> would exceed his FAAB budget.
> The second player to be auctioned is Player B. Sam wins the bid for  
> Player B with a bid of $20. Sam drops to the bottom of the FAAB  
> order and $20 is subtracted from his FAAB budget.
> The third player to be auctioned is Player C for $10 (Sam's bid of  
> $15 became invalid when Sam dropped Player M to claim Player B). Joe  
> wins the bid for Player C with a bid of $10. Joe drops to the bottom  
> of the FAAB order and $10 is subtracted from his FAAB budget.
> The Fourth player to be auctioned is Player F for $5. Player F is  
> auctioned next for 2 reasons:
> 1)Larry is higher in the FAAB order because Sam dropped below Larry  
> with a successful bid earlier in the bidding process. Since Larry is  
> higher in the FAAB order, his bid (Player F for $5) will be  
> auctioned before Sam's bid (Player D for $5).
> 2)Larry has prioritized his bid of Player F over Player D.
> Larry wins the bid for Player F for $5. As stated previously, John's  
> $30 bid for Player F was invalid because his bid would have exceeded  
> his FAAB budget.
> The last player to be auctioned is Player D. Both Larry and Sam have  
> equal bids of $5 for Player D. Sam wins the bid for Player D because  
> he is higher in the FAAB order. John had dropped to the bottom of  
> the FAAB order by winning his previous bid. Sam drops to the bottom  
> of the FAAB order and $5 is subtracted from his FAAB budget.
> Player E is not auctioned because Joe no longer has Player R to drop  
> and there aren't any other bids for Player E. If Joe had a different  
> player to drop Player E would have been auctioned.
> Sidley Austin LLP mail server made the following annotations on  
> 03/25/08, 09:31:12:
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