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12-29-2012, 08:38 PM
  #82
Woodman19
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Quote:
Originally Posted by Bomber0104 View Post
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 Phoenix...you 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.
The biggest expense is players salaries and they are dictated by the league revenue as a whole, where the overwhelming top heavy teams skew salaries up that puts huge prussure on the small market teams.

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