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re: Your unpopular sports opinions

Posted on 3/22/17 at 2:10 pm to
Posted by AbuTheMonkey
Chicago, IL
Member since May 2014
8036 posts
Posted on 3/22/17 at 2:10 pm to
quote:

quote:
The league is a joint venture, they need other teams to you know play games against. No one is paying to watch a Yankees intersquad game Besides, usually its not 100% of the revenue that is shared but national TV deals.


Right. The Minnesota Twins should absolutely refuse to play the New York Yankees until they get a cut of the gate. Not 50-50 of course, but the Twins are providing a value. And with TV driving the revenue train, the size of the local stadium doesn't really matter. The Cavs can draw more than the Knicks nationally despite being in Cleveland.

Revenue sharing doesn't mean revenue equality, but there are some revenues that need to be split because the other team is providing value.



I'd go even further (and back to H Town's point) and say that revenue sharing enhances the value of the big market franchises above and beyond a non-revenue sharing structure. The owners are not stupid.

Because the Rays and Jays and Orioles exist and are semi-competitive, that increases the size of the pie significantly enough to where the Yankees and Red Sox are making out better than they would otherwise. Would you rather have $150 million out of a $300 million pie or $200 million out of a $500 million pie? That dynamic is even stronger in the NFL.

Individually A and B and C are worth less than if A and B and C enter into an agreement to share value.
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