Quote:
Originally Posted by rburgh
The RS pool is 48% of all local revenue (tickets, broadcast, etc.) . . .
|
The amount of money transferred in total from paying teams to receiving teams is based on a 48% straight pool from the prior year (the 'net transfer value'); the actual amount a team pays or receives is based on a different formula.
A putative pool is created based on each team's net local revenue (total local revenue minus its stadium operating expenses) consisting of 50% of its net local revenue from the prior year, 25% from two years prior, and 25% from three years prior. This blended pool is divided equally between all teams. The amount each team pays or receives under this plan is divided by the total amount transferred to determine its transfer percentage. This percentage is then multiplied by the net transfer value from the preceding paragraph to determine the dollar amount each team either pays or receives.
Lastly, any team calculated to receive funds but which is disqualified from receiving revenue sharing has that money refunded to the paying teams in proportion to how much each payor contributed. Such refunds may be partially or fully forfeited if the payor team exceeded the luxury tax payroll threshold in one or more prior years. A total of 11 teams are fully disqualified from receiving revenue sharing: NYA, NYN, ANA, LAN, CHA, CHN, TOR, SFN, WAS, PHI, and BOS. OAK can be partially or fully disqualified depending on certain criteria.
Quote:
Originally Posted by rburgh
. . . and the teams are required to spend 150% of that.
|
This appears in the last paragraph of Article XXIV(B)(5)(a):
Quote:
|
The Association has the burden in any proceeding under the Grievance Procedure of demonstrating that the Club’s use of its revenue sharing receipts was in violation of this subparagraph 5(a). In any such Grievance, the Arbitration Panel shall consider, among other things: (i) the Club’s expenditures on scouting, player development, and player payroll; (ii) the Club’s long-term strategy for improving competitiveness; (iii) the uses that the Club has historically made of revenue sharing receipts; (iv) any material adverse changes in local revenue; and (v) the overall financial position of the Club. Notwithstanding the above, if a Club’s Actual Club Payroll pursuant to Article XXIII(C) is equal to less than 150% of its revenue sharing receipts in a given Revenue Sharing Year, the Club shall have the burden of establishing in any Grievance that its use of revenue sharing receipts was consistent with this subparagraph 5(a).
|
Note that club payroll here refers to its luxury tax payroll, not its actual payroll. The former uses the average annual value of contacts, pro-rated signing bonuses and contract buyouts, and each team's share of player benefits, which in 2023 was $17 million. Oakland's luxury tax payroll versus its final team payroll for the last two seasons:
2022 = 65,325,365 | 49,066,454
2023 = 81,759,852 | 62,678,156
The 2024 figures are not yet available.