Each owner is given a rating. This rating is based on who you've played, whether you've won or lost and by how much. It is similiar in concept to the RPI ratings used for college basketball or Jeff Sagarin's ratings. Also, your rating is carried with you from team to team, league to league.
Each owner is given a initial rating of 1400. This rating is adjusted after each league game, based on the final score and the rating of the opposing team owner.
The formula for the winner is:
Previous Rating + Current Game Final Margin + 15
The formula for the loser is:
Previous Rating - Current Game Final Margin - 15
Also added to each formula is a handicap based on the differences in ratings between the two teams before the game is played. So if the favored team wins, there is less benefit than if the underdog wins. And vice versa, if the favored team loses, there is a bigger penalty than if an underdog loses.
As you may have deduced from the rating formula, you are rewarded for beating good competition and likewise, you gain very little by beating weaker teams. In addition to regular season wins/losses, you will receive additional bonuses to your owner rating by performing well in the playoffs.
NOTE: ratings are only adjusted for full-season wins/losses. Teams purchased with a promotional code are not factored into owner rating.