What are some ideas? I’ve heard people say teams that don’t reinvest their revenue-sharing money shouldn’t be allowed to turn a profit.
I don’t know, but that sounds like an invitation to creative accounting. I imagine they might find a way for some other corporation with which they have a relationship to turn a nice profit.
Gross revenue? Net revenue? You have any idea what’s coming out to go from one to the other? Ask the McCourts and their amazing salaries to themselves and their non-baseball-working sons. Point is, a lot of things can happen before we get to gross revenue. Another idea of mine which I have mentioned many, many times: If you’re among the “top 5” revenue sharing beneficiaries, your books should be open to MLB’s forensic accountants. As I said here:
The top 5 teams that take in the revenue sharing/luxury tax payments must provide audited financial statements to MLB to “prove” they spent the handouts on improving the club via “sources and uses” schedules. If the team can’t prove they used the funds to improve their clubs, they either forfeit the following year’s payments or must refund the current year’s payments.
Salary floor? Ceiling?
It could be that the time has come to incentivize winning by the players. The players might — I’m not sure if you’d get resistance from that, but that would be one approach. The problem with the game being too well off is that teams can make money in ways that aren’t generally intended. John Henry had a proposal about it. Another proposal was the teams that are non-competitive over a period of years could be required to sell the team. The owners of, say, the Salt Lake City Cellar Dwellers. You haven’t competed for 15 years, it’s time to sell the team. That might be one way to approach it.
Hear that Pirates and Royals? Bill James is a’comin’ after you! Or, as I said here, my solution:
Teams that are amongst the bottom 3 in terms of payroll for five years in a row are prohibited from receiving payments for the following year (a motivation to spend)