Sunday, March 11, 2001

The importance of revenue-sharing




        Each of the 30 major-league baseball teams receives an equal share of about $18 million from their national TV contract. But local TV revenues are not shared equally. They are shared on a limited basis (along with some other local revenues) in a complicated formula that may give the Reds as much as $10 million in revenue-sharing this year.

        That can't begin to close the gap between the Reds' $44 million payroll and the world champion New York Yankees $121 million payroll.

        How can the Yankees afford a payroll that high? They are presently negotiating a $100 million local TV contract for this year; they will be giving away only some of it under the present limited revenue-sharing plan.

        By comparison, the Reds have local radio and TV contracts with Fox Sports Ohio cable and WLW-AM radio valued at $6 million.

        What is needed, says Commissioner Bud Selig's Blue Ribbon Panel on Baseball Economics, is significant revenue-sharing: up to 50 percent of local revenues after ballpark expenses. Under such a formula, the Reds' share might double or triple, and the richest clubs' takes would be cut substantially — thereby making the playing field more even. Small-market teams would be able to field more good players; big-market teams couldn't hog them all.

        But, to make this happen, the owners need to convince the richest clubs and the players' union (it's a collective bargaining issue) that there is something in it for them — a new prosperity.

        The union has exercised its option to extend the present major league baseball agreement through this season, which means no changes in baseball's basic economic structure are possible before 2002.

       



Reds Stories
Lindner keeps Reds on tight budget
Reds' plan: Hang on until 2003
Reds spending limits criticized
- The importance of revenue-sharing
Schott misses the game
Harnisch shows his worth
Riedling looking like setup man
Game report

Bengals focus on corner
Huggins expects No. 5 seed for UC
UC bom-boarded by Charlotte
UC guards too pooped to pop
UC Notebook
Pivotal day for Xavier
Temple wins A-10 Tournament
Boxer in critical condition after N.Ky. fight
DAUGHERTY: High school would be good place for Knight
Miami bubble bursts
Coles already looking ahead to next year
Kentucky gets revenge on Arkansas
Mississippi takes out No. 5 Florida
NKU men fall to old foe
Davis has Hoosiers in new territory
Iowa, Indiana in Big Ten final
Pitino signs on with CBS
Auto Racing Insider
Best and worst of week in sports
Boys basketball coverage
Girls basketball coverage
Elder beats Moeller on third try
Vandalia Butler ousts St. X in OT
Western Hills earns rare trip to regional
Campbell County wins 10th Region title
Guidugli sends Highlands to Sweet 16
Mercy gets none from Beavercreek
Wyoming upsets No. 1 Versailles
Indiana boys basketball scores
Kentucky boys basketball scores
Kentucky girls basketball scores
Ohio boys basketball scores
Ohio girls basketball scores
Cincinnati boys basketball schedule
Cincinnati girls basketball schedule
N.Ky. girls basketball schedule
Ohio Boys Regional Pairings
Ohio girls state tournament


Return to Reds front page...