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11-17-2012, 10:37 AM
  #515
squidz*
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Join Date: Jun 2011
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Quote:
Originally Posted by forthewild View Post
would this be true with a proper system in place tho?
Any direct linkage system (unless you start getting up to baseball level revenue sharing, which has massive other issues) that's based on league total revenues will have the issue with relocation. It increases expenses for every team (none of which see any benefit from the relocation other than a one time fee) by 1/30th of the change in that team's revenue. A system based upon a median would not have major issues from it because the biggest shift it could cause would be 1/30th of the difference between the 14th highest revenue team and the 16th highest.

Basically, moving Phoenix (let's say revenue of $50MM/year just to have a number to work with) to TOR2 (fake revenue of $200MM/year, no affect upon the rest of the league for the easy math) would under any gross revenue linkage cost each team $2.5MM a year in a 50/50 split scenario. In a median system, if the 14th highest revenue team made $110MM and the 16th made $100MM, the cost per team would be $190k in a 57/43 split.

Obviously those are fabricated numbers, but they're somewhat reasonable quick figures. As a note, under a median system, the players would be given greater than 50% of the split because a 50/50 split based on league revenues gives the players far more than one based on median revenues, and such an adjustment would be necessary to keep the deal fair.

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