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?
12 comments
|
0 recs |
Do you like this story?
Comments
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!
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.
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
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".
"If that’s what they were trying to say, those guys don’t deserve to be on the radio."
yeah, everyone knew that already.
Hey, why let a little truth get in the way of a good line, right?
I like Stark in general, but he’s long been an apologist for the current economic structure in the MLB, in my opinion. There certainly are owners out there who are more than happy to pocket the revenue sharing dollars, but anyone who says or implies that Attanasio is getting 80 million from the big market teams and not using much or any of the revenue his own team generates into payroll is either an idiot or a liar. Do the teams who aren’t making an honest effort to compete and who are pocketing the shared revenue deserve criticism? You bet they do.
But using them to argue or suggest that the competitive divide in the MLB is a product of the small market teams not wanting to compete is complete garbage. Stark likes things the way they are because he’s a baseball fan, not a fan of a baseball team, and because titanic matchups between all star rosters in New York and Boston are fun to follow and write about. That’s fine. Revenue and attendence has spiked in the MLB the last few years because of the perception that the competitive balance was narrowing, in my opinion. The 2008 offseason and the 2009 season damaged that perception, and it looks like this offseason will do the same (depending on what FA rumors you believe). And so the supposedly impartial national baseball writers like Stark are going to get asked these questions more often again, and I suspect you’ll hear more misleading crap like this.
I’d love to continue ranting, but I’ve gotta run… but from a business perspective, MLB shouldn’t be worrie about what guys like Stark think because they’ll always be around. What they should worry about is what football fans in Kansas City and places like that think. If they want to maximize revenue, those are the people they need to come to games, buy a jersey and watch the playoffs on TV. And those guys won’t do any of that or part with their money unless the MLB straightens out their economic structure (i.e., shows that they actually give a damn about casuals like myself).
What begins in fear usually ends in folly.
by Ted Simmons Speed Camp on Nov 17, 2009 9:45 AM CST reply actions 3 recs
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.

by 


























