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View Full Version : Revenue Sharing Proposal



longtimeyankeefan
12-17-12, 11:52 PM
No doubt, this idea has probably been floated before, but with the new TV money coming into baseball, it seems an appropriate time to suggest a new concept for revenue sharing.

In essence, the NFLís model is socialism when it comes to the TV revenue Ė every team shares equally. In baseball, we have the exact opposite Ė each team negotiates its own deal and reaps the benefits of those negotiations.

That having been said, it takes two to tango so to speak. The Yankees TV contract would have no value whatsoever if it had no opponents to play.

So, here is my proposal. Each team is free to negotiate their own TV contract. Since each game televised requires an opponent, each team pays 50 percent of their TV contract money into a fund that is then shared equally between all 30 major league teams.

Each team still has an incentive to negotiate the best contract that they can, since getting maximum value allows them to keep half those proceeds. The smaller market teams (letís face it, Kansas City will NEVER get an $8 billion dollar contract like the LA Dodgers) benefit by sharing in the larger market contracts.

One area that would have to be worked out is how to control a situation such as the YES Network, which everyone seems to acknowledge is underpaying the Yankees for their broadcast rights. The solution Ė hire independent appraisers to determine the fair market value of a TV contract in a given market where the team controls the broadcast outlet. If the team chooses to undervalue its TV contract (like the Yankees appear to be), then the league sets their contribution based on the independent fair market value.