Baseball Revenue Sharing
As the seasons progress in major league baseball, the economic structure of baseball is suffering from numerous problems, which are currently allowing for the competitive balance to be less than ideal. Baseball is faced with problems amongst the revenues, which there teams are receiving. This disparity in revenues is causing some teams to not be able to sign players that they need to compete: whereas, teams like the Yankees, and Braves can go out and sign basically whomever they want, and have payrolls, which are surpassing 100 million for a season. What I propose to do, in order to solve the problems with baseball is to revamp the current Luxury Tax system, come up with a minimum and maximum salary level, and develop a revenue sharing program, which will help the lesser teams out. I feel that these changes will allow for baseball to be more competitive every season, and would allow some small market teams not to move. Baseball is in need of Restructuring due to the current d!isparity amongst all the teams in terms of revenues. When considering any possible changes in the baseball structure, you must consider them from three different perspec
What most people feel the benefit of a comprehensive revenue sharing arrangement among all the teams involved in baseball would be is the small market teams will receive additional revenues and will thusly be able to afford better players, which would increase their winning percentage, and enhance the competitive balance in the game. Currently, in professional sports Major League Baseball's revenue sharing agreement would be considered somewhat middle of the road. The NBA being the least balanced, with the home teams not sharing gate receipts with the visiting team, and the NFL being the most balanced, with a 60-40 home visitor split. A move to a revenue sharing system like the NFL's is critical to ensure the future of the game of baseball. Revenue sharing coupled with a salary cap (min and max,) would help small market teams avoid having to possibly shutdown or relocate (Minnesota, Montreal) and possibly allow them to be among the elite teams once again. ) As these numbers show, this Luxury Tax, which was implemented in 1996, has really not done much good. In fact it has separated the teams in payroll even more so than it probably was intended to do. Major League Baseball is at a point where they cannot afford another work stoppage like they had in 1994. If the gap between the have's and the have-nots continues to grow, the sport of baseball may be in danger of becoming less popular of a sport than it is now. What I feel baseball should do in an attempt to rejuvenate the competitive nature of the game is revamp the current luxury tax system so that the teams that go over a certain salary level pay a tax on that number. The beneficiaries of this tax will be those teams, which are in the bottom 8 in revenue in the league. My next way to solve the problems was the idea of setting a minimum, and a maximum salary. The minimum payroll at $35 million, and the maximum at $100 million. My luxury tax would start above $75 million. And the final way, I mentioned to fix the problems in baseball was to change the revenue sharing, so that in both leagues the home team receives 75% of the funds, versus 25% for the visitors. Currently all teams pay a 20 percent revenue tax into a central fund, with all teams drawing money out on a scale that pays the eight lowest revenue clubs, the most money. Under this current revenue sharing system, the New York Yankees paid $23 million in revenue sharing last year, and the Minnesota Twins received $22 million (Stark 3) what is so messed up with the current system is the fact that a team like the Texas Rangers, who just signed Alex Rodriguez for $252 Million is receiving funds under the current system. What I think should be done about this is to adjust the tax rate to 35% of your revenues, and have it so that only the lowest revenue clubs get anything from this fund. The key component in th
Some common words found in the essay are:
Luxury Tax, League Baseball, National League, League Baseball's, Rupert Murdoch, Alex Rodriguez, Dombrowski Payroll, Restructuring Baseball, Expos Royals, Bob Costas, luxury tax, revenue sharing, market teams, major league, major league baseball, league baseball, competitive balance, home team, salary cap, minimum maximum, visiting team, minimum maximum salary, minimum payroll $35, competitive balance game, lowest revenue clubs,
Approximate Word count = 1921
Approximate Pages = 8 (250 words per page double spaced)
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