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10-02-2012, 11:12 PM
Join Date: Mar 2009
Location: Ann Arbor
Country: Canada
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Originally Posted by DocBrown View Post
I totally agree, BUT, I differ on the current circumstances.

I think the league needs more revenue sharing, typically the amount of revenue shared in other leagues is mostly made up of profit, and the disparity between what teams share isn't outrageous. One exception might be MLB and the yankees.

If you look at the operating income as reported by forbes (its all we got) there are only 7 teams with substantial profits (The lack of huge TV deal hampers the NHL comparitively, making rev sharing comparisons difficult at best and inappropriate at worst). I think the floor needs to be dropped or changed, and I think players portions need to go down (I think 53 to 50% is fair for players) so that more teams have substantial profit. If those concessions are made, there damn well better be a lot more substantial revenue sharing agreed to by the owners.

The problem is more rev sharing alone doesn't solve it, nor does simply reducing the players share, as you stated.
In my estimation, a fair deal would involve reducing the HRR
Plus some serious revenue sharing.
PLUS give the players a meaningful voice at the table on team locations..

Is that going to save Phx? Probably not.
But if the league were to grow 7 percent... and the players share is 55 percent instead of 57 percent

That's revenue of 3.5Billion ... 2 percent of that is 70Million... IMO, 1/2 of that 70M should go to the so-called small market teams via revenue sharing.

Do that again the next year.. revenue at 7 percent is now 3.8B
a 1 percent drop in hrr is 38 Million ... 19M goes to revenue sharing....
Now you're at 54M more in revenue sharing then right now.
Next year is 4Billion with 7 percent growth. Player share falls another percent. 40 million. Half goes to revenue sharing... that's 20M. Now you're at 74Million extra in revenue sharing

Assuming 7 percent growth (which may not be that crazy)... you could be talking about an additional 125M a year in revenue sharing. The owners get the players down to 50-50 within 5 years. The players have no instant rollbacks. Players get more say in important revenue decisions.

It's not going to be an instant panacea.

In any industry, there are going to be businesses/franchises etc that take longer to grow -- even if they are well managed... And I don't think Phx can claim to be well managed.

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