Revenue Sharing and a Floor

[opti mist]

The purpose of this thread is to focus on creative ways to get MLB to an economic model similar to the NFL, which I contend is the best in pro sports.
The key components are salary cap and floor and revenue sharing. We agree that a hard salary cap is a non-starter with the players and revenue sharing is a non-starter with many owners. So, we have to be creative.

My proposal is a more aggressive luxury tax and a floor.

Luxury tax: design one which accomplishes the purpose of revenue sharing. We have already seen that the big markets are not scared off by luxury taxes so at least it has some history to study and adjust. The major complaint is that the money paid in and shared with other teams is not spent on salaries. That is fixed through implementation of a floor.

The floor: keep it simple, make it a hard floor and adjust it annually based on the previous year's luxury tax total.

Lots of details to work out but the proposal is fairly simple and while not perfect should move the league to being more competitive. Big markets would share revenue but only when they spend. Small markets would have to spend but would receive revenues shared by the large markets.

I am hoping this concept could find support among both owners (large and small) and the players. Cards' Talk response should provide some insight.

Opti

[mattmitchl44]

We agree that a hard salary cap is a non-starter with the players and revenue sharing is a non-starter with many owners. So, we have to be creative.

I will not go any farther in potentially derailing your thread other than to say that I would not agree with either of those pre-conditions.

The small and mid market owners will not, and likely cannot, agree to hard salary floor with a guarantee of more revenue being redirected to them to meet the hard floor - and the weak implementation of a luxury tax vs. the guarantee of specific revenue sharing won't go that.

[alw80]

Is the NFL popular because of their cap system and revenue sharing?

[mattmitchl44]

We agree that a hard salary cap is a non-starter with the players and revenue sharing is a non-starter with many owners. So, we have to be creative.

I will not go any farther in potentially derailing your thread other than to say that I would not agree with either of those pre-conditions.

The small and mid market owners will not, and likely cannot, agree to hard salary floor without a guarantee of more revenue being redirected to them to meet the hard floor - and the weak implementation of a luxury tax vs. the guarantee of specific revenue sharing won't go that.

Sorry - fixed.

[45s]

a floor based on previous year's luxury tax

so....a year when there is no luxury tax collected would require the floor to be lowered...

will players who were overpaid to meet the floor be required to return part of their salaries??

[bretto12]

to Alw80,

Yes, the NFL salary cap, floor and revenue sharing IS the reason that the NFL is so popular. Do you think Buffalo, Green Bay, and Jacksonville could compete without revenue sharing? The NFL has determined that every team being competitive is the golden goose.
The NFL draft is different because a first round pick in the NFL can start immediately and it takes several year for an MLB player to reach the majors, but MLB has to find a way to keep the fans of the Pirates, Rays and A's coming to the games.

[opti mist]

quick response to comments.

1. Design the luxury tax to provide sufficient revenue sharing.

2. If top revenue teams limit spending over the tax level, you have accomplished the purpose--equality. Note: they will not stop spending.

3. If there is no solution there will be no baseball.

Opti

[alw80]

to Alw80,

Yes, the NFL salary cap, floor and revenue sharing IS the reason that the NFL is so popular. Do you think Buffalo, Green Bay, and Jacksonville could compete without revenue sharing? The NFL has determined that every team being competitive is the golden goose.
The NFL draft is different because a first round pick in the NFL can start immediately and it takes several year for an MLB player to reach the majors, but MLB has to find a way to keep the fans of the Pirates, Rays and A's coming to the games.

No, it isn't. Football is popular because of gambling, fantasy, and exclusivity. The actual product on the field isn't real good, lot of very mediocre football teams out there. The on the field isn't very good. Football games are an event because each team plays one game a week. People plan their weekends around them. No one is doing that for baseball. You're going to have inept teams whether you have a cap or not. You want to increase MLB popularity cut down the season to 100 games. Make the regular season a race and give people a reason to be invested in watching the games. This will cut down payrolls and salaries which is what people really want to happen.

[Jatalk]

Is the NFL popular because of their cap system and revenue sharing?

I think it is a major contributor to popularity since it established competitive balance.

[Jatalk]

quick response to comments.

1. Design the luxury tax to provide sufficient revenue sharing.

2. If top revenue teams limit spending over the tax level, you have accomplished the purpose--equality. Note: they will not stop spending.

3. If there is no solution there will be no baseball.

Opti

No one will get everything they want. Owners and players are going to have to compromise. I support any option balancing spending between the teams. The owners are going to have to drive the bus even up to forcing a lock out. Owners can withstand a lockout longer than players IMO. But like players owners have to compromise.

[alw80]

Is the NFL popular because of their cap system and revenue sharing?

I think it is a major contributor to popularity since it established competitive balance.

Tell that to fans of the Browns, Jets, Bengals, Cardinals, Panthers, Falcons, Commanders, Raiders, Dolphins, Titans, and even Bears. These teams are more often bad than good.

[45s]

Is the NFL popular because of their cap system and revenue sharing?

I think it is a major contributor to popularity since it established competitive balance.

Tell that to fans of the Browns, Jets, Bengals, Cardinals, Panthers, Falcons, Commanders, Raiders, Dolphins, Titans, and even Bears. These teams are more often bad than good.

money cannot buy competence

[alw80]

Is the NFL popular because of their cap system and revenue sharing?

I think it is a major contributor to popularity since it established competitive balance.

Tell that to fans of the Browns, Jets, Bengals, Cardinals, Panthers, Falcons, Commanders, Raiders, Dolphins, Titans, and even Bears. These teams are more often bad than good.

money cannot buy competence

Yep, there's always going to be inept franchises in every sport.

[Jatalk]

Is the NFL popular because of their cap system and revenue sharing?

I think it is a major contributor to popularity since it established competitive balance.

Tell that to fans of the Browns, Jets, Bengals, Cardinals, Panthers, Falcons, Commanders, Raiders, Dolphins, Titans, and even Bears. These teams are more often bad than good.

They are some of the worst ran organizations in professional sports. Some have spent foolishly such as Browns. Some refuse to spend such as Cincy. Everyone you have mentioned has a history of either poor ownership or management or both. Caps and floors can’t fix stupid.

[alw80]

Is the NFL popular because of their cap system and revenue sharing?

I think it is a major contributor to popularity since it established competitive balance.

Tell that to fans of the Browns, Jets, Bengals, Cardinals, Panthers, Falcons, Commanders, Raiders, Dolphins, Titans, and even Bears. These teams are more often bad than good.

They are some of the worst ran organizations in professional sports. Some have spent foolishly such as Browns. Some refuse to spend such as Cincy. Everyone you have mentioned has a history of either poor ownership or management or both. Caps and floors can’t fix stupid.

So then a salary cap really doesn't create competitive balance.

[Jatalk]

Is the NFL popular because of their cap system and revenue sharing?

I think it is a major contributor to popularity since it established competitive balance.

Tell that to fans of the Browns, Jets, Bengals, Cardinals, Panthers, Falcons, Commanders, Raiders, Dolphins, Titans, and even Bears. These teams are more often bad than good.

They are some of the worst ran organizations in professional sports. Some have spent foolishly such as Browns. Some refuse to spend such as Cincy. Everyone you have mentioned has a history of either poor ownership or management or both. Caps and floors can’t fix stupid.

So then a salary cap really doesn't create competitive balance.

It gives smartly run teams the chance to be competitive