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09-29-2003, 09:25 AM
  #11
discostu
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Join Date: Nov 2002
Location: Nomadville
Country: Canada
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This plan would really accelare the level of bankruptcies in the league.

A team that maintains a relatively normal payroll, and manages to make a modest profit will always have the fear of a few things going wrong. A hit to a local economy would send a team into a debt spiral pretty quickly, by taxing the losses. The team would not be able to adjust their payroll quick enough to reflect the changes in their revenues, and the costs that mount could be sufficient to send the team into bankruptcy or relocation before the local economy could recover. It would create a high level of instability within the league without producing any real benefits to compensate.

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