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12-29-2012, 08:31 PM
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Join Date: Apr 2007
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Originally Posted by Woodman19 View Post
The cap is based off of the league wide revenues, what is the top 4 teams revenue's as a percentage of total league revenue? (I'm on a cell so can't check). But to exagerate my point, if 9 teams have 100 million revenue and 1 has 600 million all teams will be equally calculated to spend as if they are making 150 million each, while the rich team laughs at that the remaining 9 are 50% over budget. That's how the top heavy teams upset the balance.
I still don't understand what you are getting at.

All teams have fixed overhead of running shop.. doesn't matter if you are Toronto or have an arena to run, staff to pay, travel to expense...what have you. Variable costs, sure, but these are small and have increasing returns to scale especially in advantageous markets.

I need you to really elaborate apparently. Forgive me.

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