Why I (and many fans) are not supportive of luxury taxes as a salary containment mech
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10-30-2012, 03:03 PM
Smartest in the Room
Join Date: Apr 2006
Originally Posted by
That is the thing I don't quite understand with ownership. Baseball, A league with huge revenue disparity (like the NHL) teams make money at all levels. The three lowest teams in terms of value/revenue all are profitable (Oakland, Pittsburgh, Tampa).
Basically franchises like the Yankees, Red Sox, etc. pay these other franchises to lose on a fairly consistent basis.
This doesn't impact MLB revenue to the extent that it should due to the large national and local TV deals (which NHL franchises don't have). The gate receipts for Pittsburgh, Tampa, etc. in MLB pretty much suck, which is what would happen to the have nots in the NHL, if the NHL adopted the same dumb luxury tax model.
The owners of NHL teams have looked to the right model in what the NFL does. Every franchise in the NFL can rise or fall on the merits of its management team. Teams that are dominant now sucked at one time. Teams that suck now used to dominate. All you need to be a contender in the NFL is a good GM and coach. The rest will fall into place as the right players are selected in the draft or acquired via trade or free agency. All within the confines of a hard salary cap I might add.
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