Can someone help me understand revenue sharing?
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12-10-2012, 08:19 PM
Join Date: Dec 2008
Originally Posted by
It could work I suppose, but what about concessions and non-hockey related events that are covered by arena management ?
If Celine dion sells out the bell center, then tampa should get a check ?
I am all for the parity in the NHL that is often lacking in MLB and to a lesser extent the NFL. I have no problem with revenue sharing, what I dont want is for teams to become dependent long term on these subsidies while they run the team into the ground in their own markets. Teams like the royals ( who seemingly are looking to make a move with recent trades) or teams going boom to bust like the marlins. By telling teams we are going to cut you into the pie without you having to lift a finger, you are simply going to incentivize the have nots perpetually living off the largesse of the have teams and will strongly reduce the growth and expansion of the game into non traditional markets.
...and that's a risk, when the revenue sharing check is so massive that the incentive to win is less than the incentive to gouge. Not "profit", per se, but gouge. When an owner has no interesting in putting a winning product out there simply because he can live large off the revenue sharing, every dollar collected from ticket sales is dirty money.
But that's what the salary floor eliminates. It's a mechanism that MLB lacks, and it means that it's impossible to force the RS check to be invested at all. Since MLB also lacks a salary cap, it's caused about 10 teams to throw in the towel completely, and the chance of a legitimate market contraction is certainly there. When a kid grows up in a market that not only has no success, but no chance of success, why would he follow the team? A kid growing up in Cleveland can see the chance for the Browns or Cavaliers to quickly retool, and a kid in Kansas City can see the Chiefs have a terrific draft and immediately become contenders, but they'll never see the Indians or Royals able to do the same.
What MLB has that the NHL also does not is a massive TV contract. The revenue sharing numbers thus cannot become so large as to cover the entire roster payroll, so winning (or at least attempting to) is still a necessity. The NFL and NBA also have revenue sharing, but you don't see teams floundering for years at a time unless they're legitimately poorly run.
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