I have used this method successfully for the past decade in my home league and wanted to share in case it provides value to others. Examples for my league are in parenthesis:
Using previous year’s data, take the first ADP for each position that goes for $1 in the draft. (QB21, RB52, WR55, TE18).
Using previous year’s data, list the points per game for each position by ADP and the percentage that each ppg is relative to the sum of the overall position.
Calculate the VORP for each player by subtracting the respective ppg from the ADP from the first player in that position that goes for $1. (QB1 = 30.3 - 16.1 = 14.2 VORP)
Add up the VORPs for each of the positions (QB=102, RB=288, WR=287, TE=51).
Calculate the VORP percentage by position (QB=102/729=14%)
Multiply total auction dollars by this percentage for each position.
For each position, multiply this number by number of players you plan to roster for each starting position.
Sum up the four numbers for QB, RB, WR, TE
Take this number and divide by your total auction dollars.
Take the total VORP for each position and divide by number from step 9. This is the number of auction dollars that should be allocated to each position by the league.
Finally, take the percentage of each player from step 2 and multiply the respective position value from step 10. This is the value that each player should be assigned.
I like this method, because it leverages historical data, with ADP and quantity of starting positions. Happy to share more details if there is interest or answer any questions.