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I tested this extensively, and here are my findings:
1. Market Size does not seem to have an influence in whether a franchise participates in revenue sharing.
2. When you hit proceed to next season, the following things happen:
CalCash = OldCash + Revenues - PlayerExpenses
If CalCash < -5.000.000 then NewCash = 0
If CalCash 0 < -5.000.000 then NewCash = OldCash + 5.000.000
If CalCash => 0 then NewCash = OldCash
In plain English:
If you your calculated cash at seasons end (based on cash + revenues - expenses) is less than -5.000.000 your cash will be reset to zero. So if you have $1M cash, revenues of $50M and player expenses of $80M, you will get $29M in revenue sharing since your cash will be set to zero.
If your calculated cash is between -5.000.000 and zero you will get a fixed amouny of $5M in revenue sharing. So if in the above example your revenues would be $77M, your new cash would be $3M.
These amounts are all independent from whether other teams make a profit and/or whether their cash is capped. The money comes falling out of the tree!
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ESPN The Show live chat during 2004 ALCS:
Julie (Boston): Do you think Jeter does the fist pump everytime he disappoints a woman in bed? Or does he save it for when he's with A-Rod?
Bill Simmons: Whoops - I didn't mean to post that. Really, I didn't.
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