Editing Bankruptcy

== Bankruptcy ==
All members should strive to keep their teams solvent. That means not allowing you net worth to go lower than -265 units (yes, you're allowed to operate a negative budget). To check net worth, select the Finances option from the Main Menu in the software package. Then, look for the small box showing net worth. Though bankruptcy is not encouraged, it is possible to quickly resurrect a team in bankruptcy. We've had rare instances of bankrupted franchises winning the championship in the following season.  

== What actually happens when I go bankrupt? ==
Teams are assessed immediately following the championship series each season. When a team goes bankrupt, it remains within your control. However, a series of actions are taken by the league, partly as penalty and partly as a strategy to ensure the future health of the franchise. Here's a list of actions taken:
 
* All personnel except your highest ranking batter and pitcher are lost.
* Any draft picks you hold obtained by trade are returned to their original owners.
* You are automatically moved to bottom place of the next draft.
* Units (including supplemental drat units) are allocated to put your team in a strong financial position. 
* A new Auxiliary roster is created.

== How do I know if my team will actually go bankrupt? == 
The sim is instructed to allow all owners a 15 unit leeway. That means your net worth must actually be less than -265 in order to be in danger. Additional leeway is granted on the basis of your team's longevity and your owner class level according to the formula ALW = (SIL * 2) + (CL * 3) where ALW = Added Leeway, SIL = Seasons in League, and CL = Class Level. For example, an owner having earned the class level of Ultimate (level 9) and having operated the team under assessment for 5 seasons would have an additional 37 units of leeway added to the baseline of -265, earning protection up to -302 units.   

Further, provided net worth is higher than -1200 (beyond which nothing can save the team!), the following conditions will prevent foreclosure:
  
* Being in a new park for the first year.
* Winning the most recent championship.

== What can I do to save my team? ==
If you have earned rights to a loan, yes. Consult your Financial Ledger to see whether you qualify for a loan. Loans must be requested (see Financial Ledger) BEFORE the end of the current season! They improve your bottom line (net worth), protecting you from foreclosure. Loans are paid back automatically at the rate of 1 unit per season game played until the loan balance reaches zero.