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Revenue Sharing and a Floor
Posted: 25 Feb 2026 06:57 am
by 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
Re: Revenue Sharing and a Floor
Posted: 25 Feb 2026 07:03 am
by mattmitchl44
opti mist wrote: ↑25 Feb 2026 06:57 am
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.
Re: Revenue Sharing and a Floor
Posted: 25 Feb 2026 07:05 am
by alw80
Is the NFL popular because of their cap system and revenue sharing?
Re: Revenue Sharing and a Floor
Posted: 25 Feb 2026 07:21 am
by mattmitchl44
mattmitchl44 wrote: ↑25 Feb 2026 07:03 am
opti mist wrote: ↑25 Feb 2026 06:57 am
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.
Re: Revenue Sharing and a Floor
Posted: 25 Feb 2026 07:38 am
by 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??
Re: Revenue Sharing and a Floor
Posted: 25 Feb 2026 07:45 am
by 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.
Re: Revenue Sharing and a Floor
Posted: 25 Feb 2026 08:10 am
by 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
Re: Revenue Sharing and a Floor
Posted: 25 Feb 2026 08:11 am
by alw80
bretto12 wrote: ↑25 Feb 2026 07:45 am
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.
Re: Revenue Sharing and a Floor
Posted: 25 Feb 2026 08:15 am
by Jatalk
alw80 wrote: ↑25 Feb 2026 07:05 am
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.
Re: Revenue Sharing and a Floor
Posted: 25 Feb 2026 08:20 am
by Jatalk
opti mist wrote: ↑25 Feb 2026 08:10 am
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.
Re: Revenue Sharing and a Floor
Posted: 25 Feb 2026 08:28 am
by alw80
Jatalk wrote: ↑25 Feb 2026 08:15 am
alw80 wrote: ↑25 Feb 2026 07:05 am
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.
Re: Revenue Sharing and a Floor
Posted: 25 Feb 2026 08:33 am
by 45s
alw80 wrote: ↑25 Feb 2026 08:28 am
Jatalk wrote: ↑25 Feb 2026 08:15 am
alw80 wrote: ↑25 Feb 2026 07:05 am
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
Re: Revenue Sharing and a Floor
Posted: 25 Feb 2026 08:40 am
by alw80
45s wrote: ↑25 Feb 2026 08:33 am
alw80 wrote: ↑25 Feb 2026 08:28 am
Jatalk wrote: ↑25 Feb 2026 08:15 am
alw80 wrote: ↑25 Feb 2026 07:05 am
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.
Re: Revenue Sharing and a Floor
Posted: 25 Feb 2026 10:24 am
by Jatalk
alw80 wrote: ↑25 Feb 2026 08:28 am
Jatalk wrote: ↑25 Feb 2026 08:15 am
alw80 wrote: ↑25 Feb 2026 07:05 am
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.
Re: Revenue Sharing and a Floor
Posted: 25 Feb 2026 10:36 am
by alw80
Jatalk wrote: ↑25 Feb 2026 10:24 am
alw80 wrote: ↑25 Feb 2026 08:28 am
Jatalk wrote: ↑25 Feb 2026 08:15 am
alw80 wrote: ↑25 Feb 2026 07:05 am
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.
Re: Revenue Sharing and a Floor
Posted: 25 Feb 2026 10:39 am
by Jatalk
alw80 wrote: ↑25 Feb 2026 10:36 am
Jatalk wrote: ↑25 Feb 2026 10:24 am
alw80 wrote: ↑25 Feb 2026 08:28 am
Jatalk wrote: ↑25 Feb 2026 08:15 am
alw80 wrote: ↑25 Feb 2026 07:05 am
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