This article is part of our The Z Files series.
It's that time. Keeper leagues are gearing up for the 2021 season. Some are first clearing away spider webs after sitting 2020 out. This can mean only one thing: fantasy managers everywhere are misapplying the concept of inflation.
If you play in a keeper auction league, you're no doubt familiar with inflation. Unfortunately, you're probably approaching it wrong.
By means of review, it's the nature of keeper leagues to carry over talent at a price below what the player would cost in an open auction where everyone is available. Since prices are set using a zero-sum economy, if the available players in a keeper league all sold for their projected earnings, there would be a lot of available budget left on the table.
The conventional manner to account for the discrepancy is scaling up bid prices via an inflation factor. The factor is calculated as follows:
- TLB: Total League Budget
- SKFP: Sum of Keeper Freeze Prices
- SKPP: Sum of Keeper Projected Prices
Inflation Factor = (TLB – SKFP) / (TLB – SKPP)
Here's a practical example for a 12-team league with a $260 per team budget.
- TLB: 12 x $260 = $3120
- SKFP: $720
- SKPP: $1200
Inflation Factor = (3120 – 720) / (3120 – 1200) = 1.25 or 25% inflation.
Normal treatment is multiplying the projected earnings of all the available players by 1.25. Now, the sum of the adjusted prices of all the available players matches that which is total available to spend in the auction.