Folding or Losing your Franchise
There are two ways you could lose your franchise: excessive debt and/or perpetually excessive losing seasons.
Excessive Debt and your Options
Owners with a net worth of less than - 250 units upon completion of the current seasont may be forced to close down their franchises. There is one stipulation, however. If you are in the first year at a new ballpark, you are protected no matter how much debt you are carrying. The best way to avoid this situation is to remain constantly aware of your financial situation by observing your personal financial rating on the title screen of the software and checking your ledger regularly. The trick is to notice your situation early enough to do something about it! Remember, since your account is confidential (in order to keep unscrupulous owners from preying upon the sick and wounded), you alone are responsible for keeping your franchise financially afloat. No one else will be looking out for you. If you are an unfortunate owner who reaches the danger point, you have some options:
(1) request a loan, providing you still have this option available.
(2) try to sell your players or draft picks (or both) to improve your net worth, but beware of the August 31 trading deadline.
(3) allow your franchise to slide into bankruptcy.
Since developing a quality team from scratch is a long process, so it may be worth thinking about how to save the franchise.
What Happens when a Franchise Folds?
The computer is "clinical" in its decisions about debt-laden franchises. It will allow a few units leeway beyond the -250, but it will not consider whether the owner is a newcomer or veteran, active or inactive. When a franchise is folded, you do not lose your place in the league. Here's a list of the things that happen: