When you say the small market owners are subsidizing the large market owners, I are you trying to say the small market owners are taking money out of their pocket and giving it to the large market owners to assist the large market owners make ends meet?
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No, that isn't an accurate description of what is going on. You are a small market team. I'm a big market team. I make $10m of new revenue. Because of the CBA, this new revenue will result in an additional $6m being paid to players, and that amount is split across the league evenly via the salary cap/minimum. Each team is thus on the hook for 1/32 of that $6m (or just under $200k), despite not getting a piece of my $10m.
So the result of that increase in non-shared revenue is that I gained $9.8m and you and every other team lost $200k. You and the 30 other teams just subsidized me to the tune of $5.8m. Of course every $10m you make, I subsidize you back that $200k and you and I are even. But when teams don't all make the same, someone ends up paying the players so someone else could pocket extra money.
That is at the heart of this whole issue. So many people just view the small market teams as wanting a handout like it's welfare or something. They completely disregard the fact that if the league is giving players a cut of TOTAL REVENUE, and that means that teams are forced to commit their revenue based on what someone else made. Without revenue sharing on that other money, the teams that make less have to pay the players their share of what was made, without getting that much back.
I'm not saying it's entirely that simple, but that's at the heart of it. They do have the top 10 teams contributing to a fund to help the bottom 10 teams. It helps, but from the media reports it falls short.
What's fair? I don't know that there is a right answer. One could say if the Texans make $10m, then they should have to revenue share at a minimum the $6m from it that goes to players. I suppose that is probably fair. Whether it should go beyond that I don't know.
There also is merit to the higher end teams saying that everyone needs to try to increase revenue as much as they can if revenue is going to be shared. I agree with that, though at some point each owner should be able to run his own club too. I don't know of an easy answer to define when a team is not making a reasonable effort. For example, should a team have to relocate if they could do better elsewhere?
Ok Onion, I'm curious to hear now if what I said made sense and you can see how without revenue sharing the small market teams are indeed subsidizing the profits of the big market teams?
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