Settlements

# Purpose of Settlements

If activated during the League creation phase, this portal allows the use of Settlements. These are a way to allow managers to make trades while preserving their current finances, deferring the payment over one or more half-seasons.

# How They Work

The settlement has a minimum duration of "Half-season". This is because a league season is divided into two halves.
During the offer phase, a manager can request that a percentage of the amount to be paid into the other manager's treasury be deferred over time.

# Cost of the Settlement

The cost for a half-season settlement depends on the value set in the Seasonal Limits. In fact, it is possible to set a percentage Tax for each half-season of the settlement's duration, which will be calculated on the amount of the settlement.
Suppose a trade would cost manager A $€10,000,000$. Manager A decides to apply a settlement of $50\%$ deferred over 1 and a half seasons, with a Tax of $10\%$.
The formula to be applied for the effective value of the settlement is:

Where $V$ is the effective value of the settlement, $C$ is the requested settlement amount, $T$ is the Tax chosen by the admins, and $D$ is the number of half-seasons the settlement lasts.
In our example, we would have: $T = 10\%$, $D = 3$ (being 1 and a half seasons) and $C = 50\% \times €10,000,000 = €5,000,000$.
Therefore

Thus, manager A will pay $€5,000,000$ immediately and will pay the deferred amount of $€6,500,000$ into the treasury of the manager who agreed to the settlement after 1 and a half seasons.