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Baseball’s Revenue Sharing Fails in Theory and in Practice

The logic behind revenue-sharing programs is easy to follow. In a post-free-agency world, team payroll is a huge predictor of team success, but budgets are limited by things outside of a team’s control, like market size and stadium situations. Revenue sharing, then, allows those teams who can’t match up financially with the big boys to […]

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Bud Selig’s Coalition Takes Aim

Major League Baseball did not establish its revenue-sharing program without a fight. It took until the 1996 collective bargaining agreement, the first signed after the contentious 1994-95 strike, and that plan was gradually implemented. The current plan, in which 34 percent of all “net local revenue” from all 30 major-league teams is subject to redistribution, […]