Revenue Sharing and Competitive Balance


No matter the structure, all professional sports leagues are deeply concerned about the same two basic issues: competitive balance and revenue sharing. With an understanding of the background and structure of leagues provided in the previous chapters, the reader can now give greater attention to revenue sharing policies and competitive balance issues. One way of thinking about revenue sharing is to define it as the amount of revenues earned by members of a professional sports league that are shared by all league teams, regardless of the teams’ contributions to the generation of these revenues. Another way to consider revenue sharing is to focus on the amount of money that teams ...

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