Quote:
Originally Posted by Dutch Alexander
The other issue remaining is that the combination of revenue sharing and a cash maximum simply does not work. A team receiving money will immediately lose all money above $500,000 since that is the cash maximum. For it to work the revenue sharing would have to be added to next years revenue line rather than the starting balance. But only for teams receiving money, team paying money would be hit double if this is added to next years revenue. First they would lose all profit above $500,000 and then they would still have to pay revenue sharing.
For this to work revenue sharing would need to be added to the previous years expenses for teams paying and to the next years revenue for teams receiving.
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With a low cash maximum revenue sharing is more about stopping any losses, rather than being able to use the revenue sharing money for future planning. ie. if you happen to run into the red, the revenue sharing money at least means the Owner doesn't have to inject as much cash in and be upset, but you can't really use excess revenue sharing money to bootstrap yourself for the next year.
But I think I see where we can project out the revenue sharing/luxury tax values into the future budgets, which should help especially in leagues with bigger gaps in income, or to be able to use it for future planning when the owner doesn't control the budget.