I don't know the exact formulas involved, but it probably works similar to how the game generate power rankings, which includes part of the previous season's stats until around week 8.
If it were me creating the formula I would probably look closely at Points For (PF) and Points Against (PA) as well as the strength of the opponents played. There's so much that could go into the formula though. JDB is probably the only one who knows it.
I don't know the exact formulas involved, but it probably works similar to how the game generate power rankings, which includes part of the previous season's stats until around week 8.
If it were me creating the formula I would probably look closely at Points For (PF) and Points Against (PA) as well as the strength of the opponents played. There's so much that could go into the formula though. JDB is probably the only one who knows it.
From the forums, it says it is PF/Game, PA/game and then subtracted. Its why you could have possible 0-12 team vs 1-11 team as GOW.