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The Team Harmony page displays information about the team's internal relationships and player happiness, including player personalities, conflicts, and a list of any cliques that have formed.
Team Harmony models the dynamics of your players' relationships with each other. "Problem" players will potentially create many more headaches for their General Manager, who'll have to keep a careful eye on their team as off-ice indcidents can lead to the formation of divisive factions that can send player morale plummeting.
You'll be notified of Incidents involving your players. This will happen irregularly, to any playable team, but you'll only hear about it if it happens to yours. Player with high controversy ratings will tend to create the most, and worst, incidents - particularly if their team's general manager does not have a high discpline rating.
When an incident occurs, Conflicts may be generated between players, with varying levels of severity. This will hurt the Team Harmony level (the more severe, the worse the impact), which in turn damages player happiness.
The presence of Conflicts can lead to the formation of Cliques as teammates take sides in the conflict. Players in Cliques will tend to back each other up in future Incidents, making the severity of Conflicts tend to grow, leading to more Cliques, and so on. Conflicts and Cliques will naturally tend to fade away over time (faster if the players involved have good Likability and Professionalism numbers) but you can also take active measures to fix them by getting rid of the players involved (trading, transferring, or releasing - sending them to a farm team won't work, it'll only slightly mitigate the overall effect of the conflict on the team's harmony level.)