- Joined
- Nov 6, 2011
- Messages
- 10,924
This reminds me of what's going on in Major League Baseball right now. Teams are getting back guaranteed large sums of revenue from revenue sharing and there's no incentive for the poorer teams to try and spend money.
Research shows that a team in the 60 wins range making profits off of revenue tax lose money spending resources to get to 70. The magic number for actually making the investment worthwhile is 85 which is very difficult, expensive and risky. Most teams don't even risk it and are satisfied with just taking the guaranteed profit.
Very few lower market teams actually get good in MLB from spending money (Rays, Pirates, Marlins, ect.)
Someone was posting here a little while ago saying he knew for sure Miami was one of the handful of teams that actually turned a profit on their athletic program last year. If that's true... ****
Research shows that a team in the 60 wins range making profits off of revenue tax lose money spending resources to get to 70. The magic number for actually making the investment worthwhile is 85 which is very difficult, expensive and risky. Most teams don't even risk it and are satisfied with just taking the guaranteed profit.
Very few lower market teams actually get good in MLB from spending money (Rays, Pirates, Marlins, ect.)
Someone was posting here a little while ago saying he knew for sure Miami was one of the handful of teams that actually turned a profit on their athletic program last year. If that's true... ****
