Designing League Incentives

I’m no artist, but as we enter August let me paint a picture of what I see happening in many fantasy leagues:

“My team started fast and I was optimistic in May, but since then I’ve fallen out of the race and am now looking only towards next season.”

“My league’s title chase appeared to be close in June, but just a month or so later it now looks like it’s really over – it’s a one (maybe two) horse race.”

“Our league trade deadline is still 30 days away but no one is really buying at this point.  It makes for a tough sell.”

“A lot of the owners in my league seem like they’ve checked out for the summer.  There’s just not a lot of activity from those teams lower in the standings.”

Familiar? Of course I’m using very broad brush strokes here but you get the point: it’s rare to find a fantasy league that has a hot race involving half your league’s teams in August (and I’m not sure I’ve ever seen one in September).  But this isn’t really surprising, is it? Still, if you’ve ever won a fantasy league then you know the only thing better than winning is winning a competitive fantasy league.  We all want to win among the best, don’t we? That’s what bragging rights are all about.

My original intent for this article was to debate whether or not it’s possible to legislate competitiveness within your fantasy league, but we’ll just skip to the conclusion and say “it’s not”. This fact is probably obvious to you but in 20 years of being a fantasy commissioner I can tell you I’ve tried many times to drive competition up and down the standings each season, but in the end there’s no secret sauce.  Instead, I’ve come to the conclusion that attempting to build an active league is far better than trying to manufacture a competitive one, so today I’ll leave you with a few ideas that might help increase engagement in your league, and also ask for your feedback on what else might be working for you.

Like many points leagues, regardless of platform (you might argue this for H2H leagues, too), a typical fantasy season for keeper leagues is a marathon to October that awards the “rich” (in talent) with a chance at victory and the “poor” with little more than hope (often in prospects).  In other words, a natural consequence of any “winner takes all” system is that it is likely to leave a large handful of owners disengaged from, disinterested in, and maybe even disgruntled with their current season the second they realize they can no longer compete.  That may be hyperbole if you find yourself in a league with a full slate of excellent owners, but that ideal is nearly as elusive as the quest for competitiveness itself.

The “Brinksmanship” league was formed this past February by a savvy group of experienced Ottoneu owners looking to solve a simple question: “How do we keep the last place team fully engaged in the current season without preventing them from preparing for the next one?”  What follows are the three “carrots” we implemented and have really come to enjoy:

Money Money Money

No matter how you slice it, money is a motivator.  The common assumption that the higher the stakes, the higher the engagement level (and probably the better the competition), and we bought into that belief full tilt this spring by making Brinksmanhip a $50 buy-in league.  Ottoneu money leagues are well managed, with payouts awarded each October, and in the case of Brinkmanship the top three teams (out of 12) will receive $300, $100, and $50, respectively.  My takeaway here is that the payout not only makes the season more meaningful (and probably helps recruit better owners), but it does an excellent job of keeping teams 4-6 engaged all season long, too.  Not every fantasy league is setup to put money on the table, but if you’ve got a long time league that is looking to up the engagement level, there are few simpler ideas to implement.

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Prospect Draft

Money is a motivator, but it’s not the only one, and obviously the team that finds itself in last place by mid-May is probably not looking at a windfall come October.  So in addition to cold hard cash, we also implemented a pre-season prospect draft, with the draft order awarded by final placement in the standings.  A quick read of Joe’s “5MiLB” system may be helpful before you move on, but the assumption here is that if I find my way to the bottom of the standings mid-season without any chance of earning a payout, my focus in a dynasty league is now squarely on the future.  What is most valuable to a team looking to the future? The answer is “profit”, or a return on investment high enough to justify the risk of selling off present value for the potential of future surplus.  What is better than a young, cheap player that carries the hope of a breakout? A young, cheap player that costs me almost nothing, which is the biggest benefit of the 5MiLB system.  Under this system owners are allowed to draft and hold minor league players “off roster” at a cost of $0 until they debut in MLB (they are also shielded from arbitration).  Because the 5MiLB draft occurs prior to the regular league auction, the quality of players available makes the draft order quite valuable.  I want the earliest pick I can get, which functions as a clear incentive to finish as high in the standings as I can, even if I’m clearly “out of the money”.

The result? Teams lower in the Brinksmanship standings are not only “buying” regularly even in July (which has naturally enhanced owner-to-owner communication throughout the league), they are playing the waiver wire with a vengeance, making the “churn” of player transactions one of the most active I’ve seen.  This added activity has also made it somewhat more difficult for all owners to keep pace with maximum games played and innings pitched limits – a positive consequence in this case.

Arbitration “Coupons”

Arbitration is somewhat unique to Ottoneu but essentially plays the same role as inflation in other types of dynasty leagues, though in a more market-driven way.  This system allows each owner the opportunity to allocate up to $3 to as many as three players on every owners’ roster (excluding their own), for a total increase of up to $33 per team (salary cap of $400 per team).  These allocations take place just after the regular season and often land on young and/or cheap “breakout” players as a way of forcing financial pressure on an owner as they prepare for the January 31st keeper deadline.  It’s a good system that makes for an active off season, another hallmark of great fantasy leagues.

In Brinksmanship, we decided to hijack the arbitration system by creating “coupons”, which are earned by owners based on standings and used to offset these allocations (by player), thereby helping to slow the overall inflation rate of their roster salary.  These coupons have been discussed at length within the Ottoneu community, and though we won’t be able to fully evaluate the impact of the coupon carrot until this winter, I can confirm that they’ve had a positive influence on the activity of the league and seem to be a very real target for many teams because their relevance has come up often in trade talks which, for the first time, appears to give some extra leverage to “sellers” in negotiations.

Brinksmanship has been a lot of fun this season because it’s been heavily active.  Here’s a summary of the three incentives noted above, and if you’re interested in reviewing a full template of the league to generate your own ideas, you can check it out here.

Brinksmanship (649) Incentive System

If you’re looking to up the activity level of your league, there’s no substitute for filling it with great owners.  But if you’re searching for ideas to rekindle the flame of engagement and are open to thinking outside the box, these incentives seem to be working in Brinksmanship this year. What is working in your league?





Trey is a 20+ year fantasy veteran and an early adopter of Ottoneu fantasy sports. He currently administers the Ottoneu community, a network of ~1,200 fantasy baseball and football fans talking sports daily. More resources here: http://community.ottoneu.com

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Justin VibberMember since 2020
9 years ago

The fact that Brinksmanship has these competition incentives is a large part of why they were the #1 league in the June Power Rankings (http://www.fangraphs.com/fantasy/ottoneu-june-power-rankings/ ).

hawkcp
9 years ago

Preseason side bets are the answer. Two last place teams with a side bet will usually be two of the more active teams at the deadline. It does create a wrinkle whereby teams lower in the standings have less motivation to sell good pieces for keepable ones, but if your league suffers from the problems mentioned in this article, the owners at the bottom of the league probably aren’t legitimately making those moves anyway.

RCMember since 2016
9 years ago

We have a pretty good incentive structure for our league:

1st prize is a Cadillac Eldorado
2nd prize is a set of steak knives
3rd prize is you’re fired

des6464Member since 2025
9 years ago

12 team home league, top 3 spots pay out (4th place usually ends up finishing in the money due to transaction fees).

As an incentive to remain competitive, 5th place gets the most names in the hat to determine next year’s draft order. It goes 5th, 6th, 7th, 8th, 9th, 10th, 11th, 12th, 4th, 3rd, 2nd, 1st. Not much to gain by tanking.

5 of the 12 teams also do a side bet which is helpful.

Inactivity fee for any owner not active in any given week (unless special circumstances).

Luy
9 years ago

I’m not sure if there’s a Roto analog to what our H2H league does…but we toyed around with incentives to winning the consolation bracket of the playoffs until we found a reward that was enticing enough to keep folks engaged.

So we have the top 4-6 teams competing for the championship.
Then the 7th to 12th place teams have a goal within their reach to stay engaged.
And we’re in a 14 team league so sometimes the bottom 2 teams will even stay engaged, hoping to get into the playoffs in hopes of catching come magic and getting the incentive.

It’s not perfect. But we have noticed a marked improvement in engagement.

Note: there’s no money involved. The only incentive is improving next years prospects.

joecatzMember since 2024
9 years ago

I’m currently in 10th place in brinks (10,806 pts) that’s less than 400 points out of 6th. I just trade Clint Frazier trea turner and Aaron Sanhez for a $66 Kershaw

gramsalotMember since 2021
9 years ago

I would just like to know why in the “well-managed” money leagues Fangraphs/Otto proposes to keep a full 25% of the league entry fees collected. Does it really cost that much to hang on to $1200 or $600 dollars. What service are you providing exactly? That’s worse than a typical hedge fund.

Justin VibberMember since 2020
9 years ago
Reply to  gramsalot

A few points:

1) Non-prize ottoneu leagues are $10, so $120 of the $150 not returned in a $50 prize league is basically the cost of playing on ottoneu.

2) Personally, I don’t mind paying the $10/team fee, or the extra bit that’s not returned in the prize leagues, since ottoneu is a one man show and I don’t mind investing a bit of $ to ensure I can continue to play and support the person who has grown this service

3) The payout structure for the prize leagues is very comparable to the prize leagues offered by other sites, and I believe is actually a bit more favorable

4) There is nothing stopping someone from having a standard $10/team league in ottoneu and collecting an additional fee for prizes that are administered separately. I play in leagues that do this, but I like not having to worry about hounding owners for league fees or commisioners for payouts.

Jason BMember since 2017
9 years ago
Reply to  Justin Vibber

Thanks for asking the question and for the response – I was wondering the same thing. On my initial reading I thought it was onerous that running the league ate up 25% (!) of total league dues – that’s equivalent to a second place payout, or you have to win the league to do better than the person just running the thing.

I realize that not everyone wants to or has the means to play in a higher buy-in league, but as entry fees go up you could hold the admin costs the same and they would go down as a percentage of league dues. (e.g., going from a $50 to $100 buy-in and holding admin costs at $150 would drop the percentage held out of the prize pool from 25% to 12.5%)

gramsalotMember since 2021
9 years ago

As a follow up question-How does fangraphs/otto keeping 25% make my league more competitive?

jimdetry
9 years ago

I’ve run a points, non-keeper, no money league for over 15 years. My solution is that anyone who gives up is not invited back the following year. League size has varied from 9 teams to 17 teams. Managers who know, for some reason, they will not have the time to be competitive a given year will voluntarily drop out that year before the draft, knowing they will be invited back whenever they’re ready. I also let managers invite friends or relatives. That way, even during a season when they’re not likely to win, they still have an incentive to compete with each other. The Darwinian forces have resulted in a fairly stable, competitive league.

Go Rockies
9 years ago

In our long-time keeper league we implemented a last-place fee that’s 1/3 of the entry fee ($100 in our case). The bad teams still sell for prospects and future value, but they also will scramble all season long with the waiver wire to stay out of last place. Admittedly, it helps that we know everyone’s coming back the following season even if they finish last.

Dunyduke16
9 years ago

I’ve been my league’s commissioner for about 12-15 years now, and season-long engagement has always been an issue. Here’s what we’ve done in my league to address the issue…

The last place team pays a $20 penalty at the end of the season. That money goes into a pot. In addition, teams are allowed only 55 FA adds each season. If they go above 55, $1/add goes into the aforementioned pot. The winner of this pot is the team who has the biggest point increase from the ASB through the end of the season. This helps to keep teams active (for the most part) during the second half of the season.

What used to help to keep teams active in this keeper league was the ability to trade away big name, expensive players for cheap keepers. We have an auction league, and each team can keep up to three players each year. Players’ auction prices are doubled for any players being kept. (If you draft Drew Pomeranz for $4, you can keep him for $8 the following year.) Any undrafted players have a $3 price tag (meaning they can be kept for $6 the next year). The problem we ran into was that teams who were completely out of the money trading, for example, Kershaw, Arenado, and Miguel Cabrera to the 3rd place team for a $3 Carlos Correa. Both teams could clearly justify the trade (if not, trade could be vetoed), but the league felt that trades of that ilk undermined the integrity of the league. So while “keeper trades” did keep the league more active, the majority of the league felt that it was bad for the league. The solution? No team can keep a player that they traded for. Fixes the problem, but unfortunately leads to more inactivity.

Edge03jb
9 years ago

I’ve been league commissioner for a 10-team ESPN roto league in its 7th year. We’ve always had this problem. I’ve gradually been more selective in who I let into the league every year, and it has gotten somewhat better from an activity standpoint. My general requirements for membership are (1) past fantasy baseball experience and (2) must commit to stay active all year. We typically have 5 or 6 of the same people in the league every year, with the rest being different every year. The ones who don’t stay active aren’t invited back.

It has always been a $50 buy-in. The first 3 years, only 1st and 2nd received payouts (either $400/$100 or $450/$50, I can’t remember). I got frustrated with people giving up too early, so we voted and made a change in year 4. We changed the payout structure to $350/$100/$50, with $350 going to 1st, $100 going to 2nd, and the $50 going to the winner of this $50 “side pot.” The “side pot” went to the team that had the most roto points from the all star break (or maybe at exactly the halfway mark, I can’t remember) to the end of the season. So basically, for this “side pot” only, everyone started back at 0 for the second half of the season. The idea was to give everyone another shot at getting some money back, even if they truly were out of contention at the halfway point. It ended up working somewhat, though not as much as I had hoped. The downside was that I had to keep track of the stats in a spreadsheet (using the monthly/weekly totals from our league stats section on ESPN) and email the standings once or twice a month for the second half of the season. If ESPN had a way to track this, I feel like we would have had even more activity during the second half.

We changed it the next year to 1st/2nd/3rd payouts, and did away with the “side pot.” The main reason for this change was that 3rd place is generally still attainable for even those at the bottom of the standings halfway through the season. Plus, I wasn’t going to have time to do the same side pot calculations that I had the previous season.

dtrain24
9 years ago

League 671 is fairly competitive. We run our money separately and pay $200 to play. Top 4 teams win money, as does the team that gains the most points in the second half. So that motivates all teams to keep trying. Your team could stink but you can still win your money back. Oh and last place buys the league pizza for next year’s draft. That seems to help along with just general ridicule for stinking.

dtrain24
9 years ago
Reply to  Trey Baughn

It works OK. We’ve been doing it for around 4 years. Last year the winner also had the most second half points gained (it was yahoo roto), so he doubled up on prize money and took home like $1400. But the other years the winners were teams out of the money, which is good enough to keep it going.

MoeliciousMember since 2018
9 years ago

In my 12 team roto league the lower you finish the more you kick into the prize pool. The top four teams finish cash flow positive, but teams 5 through 12 must pay with the amount increasing the lower you go. For example, the fifth place team pays $50 while team number twelve pays $110.

willkoky
9 years ago

We have had a league for 24 years and over time implemented everything above in some form. There is one idea i think has a lot of merit we did not yet try. Increasing the fee and then paying out every position down to second last with at least some increase in fee. 100,70,50,30,25,20,15,10,5,0 for example. However a possibly even better but very strange idea has also occurred to us. Making the decreasing payout nonlinear. 100+trophy,150,100,40,120,30,70,10,50,0. A) take advantage of the fact that bragging rights have value and do not pay the winner as much cash b) make the payout swing farther between each place in the standings. Yes there are years you will finish 8th and get $10 when its better to finish 9th and get $50, but as long as the slot before you pays more than the slot behind you, you will have financial incentive to move up, not down, for most of the year. And if you do intentionally tank 1 spot you stand the risk of accidentally tanking two and being worse even off.

brtnsbsMember since 2026
9 years ago

In our H2H keeper league with 14 teams we have a penalty for any team that finishes more than 25 games behind 6th place (top 6 make the playoffs). We are a fairly consistent ownership group and the 6th place team each year finishes with a fairly similiar winning percentage each year. We base the penalty off 6th place and not 1st in case a 1st place team totally runs away with the regular season title.

Any team that finishes more than 25 games behind 6th place pays a $1 draft budget to each non-playoff team the following year. If a team really tanks (more than 40 games behind 6th place) they pay $1 draft budget to every other team ($13 total). This has helped push off the typical keeper dump deal trades until later in the season and kept the teams that have sold active in waiver claims in order to avoid any penalties.