A Salary Cap Primer
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09-29-2003, 08:52 AM
Join Date: Nov 2002
Originally Posted by
So, if the revenue that is the cap is based off is any higher than the $2B he said then he obviously lied.
Well it is quite possible that the $2B figure is a lie. Many people here believe that. I think it's fairly accurate, based on some of my assumptions. The point is, it's impossible to state definitively whether it is true or not. All we can do is fans is say what we believe them to be (and hopefully, explain why).
My feeling is that if a revenue sharing system were to be implemented, the total revenues for the league (as calculated for revenue sharing purposes) would be less than $2 B, probably in the neighbourhood of $1.5 to $1.7 B. The following type of transactions would occur:
-Teams that own their own arenas, separately incorporated, would record more revenue at the arena level, particularly luxury box revenue and sponsorship.
-Teams that are owned by a broadcasting company will sell the broadcasting rights at a reduced rate.
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