Can someone help me understand revenue sharing?
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12-08-2012, 07:27 PM
Join Date: Jun 2006
Originally Posted by
In the NHL revenue sharing is where Toronto, New York, and Montreal take a bunch of the money they make because they are big markets and have fans and give it to the 10 or so teams that can't charge more than $40 for a ticket so they can almost break even.
In other leagues there are many teams that make big profits and HUGE tv deals to split up. In the NHL it's basically stealing from a couple teams to prop up a bunch of failed markets.
And what do all those other markets do? You know, the ones between those top 3 (Toronto, Montreal, and the Rangers) and those "failed markets" at the bottom? That's one question.
And how many "failed markets" are there exactly? Just to be clear on how many markets I'm asking about in the first question.
Ok, so hypothetically, let's say the League decides to cut the Revenue Share recipient loose, and, I don't know, 3, 4, 6 of them die. What then will happen to the revenue averages for the rest of the League after that? Won't a higher revenue average then result in salaries going up even higher? And if that happens, won't there then be another group of teams requiring "Revenue Sharing" or else they be cut loose to die from not being able to compete? Seems like a vicious circle.
To the OP, another generalized answer is that Revenue Sharing is what becomes almost a necessity in a league where there is extreme economic disparity. The NHL is such a league, with 3 to 4 general economic levels... The top 3, the next 3 or 4, then a large group of about 20 (give or take) and then a bottom group of about 2 or 3 teams. The lower ones generally help to keep salary costs reasonably in range for the next group above them, while the top group(s) keep pushing the salaries higher as a result of them having extremely high revenues. Thus the Revenue Sharing, in order to try to maintain survival of all in the League and to try to keep all teams reasonably competitive.
OH, forgot to mention this: Haven't heard of any of those teams being stolen from complaining!
Last edited by MoreOrr: 12-08-2012 at
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