Revenue Sharing Teams Mlb

Michael lewis has an op ed in the nytimes this morning pointing out that the present revenue sharing formula in major league baseball does little to affect the quality of the various teams on average and despite the fact that some small market teams do well now and then.

Revenue sharing teams mlb. In major league baseball 48 of local revenues are subject to revenue sharing and are distributed equally among all 30 teams with each team receiving 3 3 of the total sum generated. As a hypothetical example let s look at the red sox s figure of 104 million which the club received from nesn a network the club has an 80 stake in. Here s how the program affects revenues payroll and the. The new york yankees are the most valuable team 4 6 billion and had local revenue of 712 million last year the most in mlb and more than the bottom six teams miami marlins tampa bay rays.

Because major league baseball teams share revenue but are not subject to a salary floor teams can pretty much guarantee a hefty profit by maintaining a low payroll. Major league baseball mlb with its 30 teams generated around 9 9 billion u s. However according to the collective bargaining agreement cba clubs are supposed to use revenue sharing to enhance their winning percentage not their bottom line. High revenue teams can shield some of their revenue from revenue sharing by making it a part of owning an rsn which aren t considered part of the pool divided among all the teams.

Dollars in total revenue in the 2018 season almost twice the revenue generated ten years ago when total revenue. Mlb officials want revenue sharing arrangement between the players and teams for 2020 season report says the owners could threaten to not play games at all in 2020 if an agreement is not reached. Mlb s revenue sharing program prevents large market teams like the yankees and red sox from dominating the league every year. Revenue sharing in major league baseball in the last decade major league baseball mlb has witnessed the dominance of the same few teams during the regular season.

Mlb owners approved a revenue sharing agreement that could help bring baseball back in july but the proposal is expected to be rejected by players.