RS Review Time!

[Colby]

Good to hear.. FYI, the proposal is the following...

Revenue sharing money for 2011 will be dolled out on June 1st, 2011 based on what tiers franchises fall into for 2011.  This money is considered a cash receipt from the luxury tax system and MLB central fund.

TIER 10: 1 team x $20m = $20m
TIER 9: 2 teams x $15m = $30m
TIER 8: 3 teams x $10m = $30m
TIER 7: 4 teams x $5m = $20m
TIER 6: 5 teams x $3m = $15m
=======================
Total revenue sharing = $115m

[rcankosy]

Colby,

I have three questions.

1.  Why don't Tier 10 teams receive a higher amount ($20m) than Tier 8 and 9 teams ($30m)?

2.  Should Tier 8 and 9 teams receive different amounts?

3.  Shouldn't there be Tier 6 teams?  You have Tier 8 listed twice.

Roy

[Colby]

Colby,

I have three questions.

1.  Why don't Tier 10 teams receive a higher amount ($20m) than Tier 8 and 9 teams ($30m)?

2.  Should Tier 8 and 9 teams receive different amounts?

3.  Shouldn't there be Tier 6 teams?  You have Tier 8 listed twice.

Roy

1) You are looking at the total amount for all teams in the tier.  Each tier has a different amount of teams.
2) Of course
3) Fixed that typo

[Canada8999]

Now that we're allowing salary caps to vary over time, where the performance of a team will ultimately control their budget then what is the purpose of revenue sharing?  Any motivation for including would seem to have been due to an oversight in the salary cap calculation... am I missing something?

[Colby]

Now that we're allowing salary caps to vary over time, where the performance of a team will ultimately control their budget then what is the purpose of revenue sharing?  Any motivation for including would seem to have been due to an oversight in the salary cap calculation... am I missing something?

The motivation is that it persists as a key financial element for small market clubs in MLB.  Our salary cap system is ultimately based off of the payroll for the 40-man roster.  This excludes portions of money that are dumped into the draft by small market clubs.  The question is: do we call it a day and keep it even, or do we add some extra per RS?

[Colby]

Response from Ben... others?

[Canada8999]

Response from Ben... others?

I'd be interested in hearing some more arguments too - I'm not sold myself on what to do with RS

[rcankosy]

Guys,

I'm fine with the numbers on the chart that Colby posted.

Roy

[lp815]

I'm also ok with the numbers and proposal.  Unless someone has a valid argument, I'll give a tenative approval.

[Colby]

It looks like Jake and Roy are on board.  With that said, I want to hear Ben's thoughts once again, a vote from him, and then a vote from M.J. and Chad.