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Question regarding revenue sharing

I typically don't like ESPN's Mike and Mike in the morning, but today they were discussing revenue sharing with Jayson Stark and claimed that small market teams are starting out with anywhere from $80 to $100 million in revenue sharing--so using the small market team defense is no excuse for not paying players.

I have a hard time believing this is true. Mark A certainly seems aggressive enough that I'd doubt he'd max out payroll at $90 million if he were already starting with $80 mil before a single ticket is sold.

There must be some nuance here that I'm missing. Can anybody help?

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That may be over a few years or "small market teams" collectively

The Devil Rays, Marlins and Royals each got around $30 million in 2005. I guess it’s possible that amount tripled in four years but given the complaints the big-market teams were making then I doubt it.

Maybe they’re interpreting the $80-100 million the Yankees pay out as what each small market team gets.

Rooooo-guejim!

by TheJay on Nov 17, 2009 8:20 AM CST reply actions  

I heard the segment, too ...

and Stark was talking about revenue sharing money received per year. He was proposing that teams be held to a salary “floor” of $70 to $75 million per year, and, to justify his position, he said that teams are getting (and I’m paraphrasing) $80 million without selling a ticket.

by Rubie Q on Nov 17, 2009 8:25 AM CST up reply actions  

revenue floor

not to sidetrack the discussion, but a salary floor isn’t going to happen. the owners brought it up while negotiating the last CBA, and the players’ union was against it. the idea being that instituting a floor will eventually result in a ceiling.

as for revenue sharing, there are several components:
(a) luxury tax (generally paid by yankees/ red sox);
(b) MLCF (“central fund”, generally from national broadcasting);
© revenue sharing (each team contributes part of its local revenue into a pool, which is then distributed equally amongst clubs);
(d) discretionary fund (i think each club contributes some equal amount and then the commissioner decides where this money goes).

so if national broadcasting gets each team $20 million (or more, i don’t have any numbers in front of me) and if you’re a net recipient on luxury tax, you could be at $40-50 million. add in some of those other items, and maybe teams do get to $70+, but i wouldn’t think everyone is there before selling a ticket.

by Capt Science on Nov 17, 2009 8:51 AM CST up reply actions  

Salary Floor

They actually made this point on the broadcast. They suggested not a floor but a bizarro luxury tax where teams who didn’t spend at a certain threshold got taxed. Said the union wouldn’t oppose this because the converse is the already existing luxury tax.

Steve
http://nohuddleoffense.blogspot.com

by stigmo on Nov 17, 2009 8:55 AM CST up reply actions  

Rec'd for your sig

I also agree with you. I’m guessing that they’re adding together every team’s share of the revenue sharing. That certainly doesn’ t mean that each team starts with 80-100 million dollars. If that’s what they were trying to say, those guys don’t deserve to be on the radio.

Cards Announcers On Gamel's First Career HR, "That’s all they need is another home run hitter".

by tcyoung on Nov 17, 2009 8:33 AM CST up reply actions  

touche

Cards Announcers On Gamel's First Career HR, "That’s all they need is another home run hitter".

by tcyoung on Nov 17, 2009 10:11 AM CST up reply actions  

I know exactly how you feel

"A D+ Grade? That must have been a Wittardo grade"- @73_MC

by BrewHaHeather on Nov 18, 2009 12:32 PM CST up reply actions  

revenue sharing data

The data I found showed that the Yankees have paid $75-80 million in the recent past. But no team ever receives that amount. A few teams have received as much as $30-33 million. But that is the most.

A few teams like the Yankees are griping because that money isn’t going directly to player salaries. A rebuttal I read on MLB.com from a Pirate exec said that the Pirates are using some of the money for capital to start baseball academies in Central America. Another article said there are some teams (KC for example) which pocket some of the money and turn a healthy profit.

The data below has a couple of years of data. But it also says that it is unlikely 2008 data will ever be published.

Revenue sharing data

by jimf on Nov 17, 2009 12:53 PM CST reply actions  

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