Originally posted by JaxRed
It depends....... I bet the Reds get revenue sharing for 2003 based on 2002 numbers. So in 2003 they got money, but in 2004 they won't. Again, would be nice to nail down.
Here's Doug Pappas's summary. No mention of lag, so presumably everything is based on the previous year.
"Local Revenue Sharing: Rises from 20% under the 1996-2001 CBA to 34%, net of ballpark expenses. Revenue sharing money divided equally among all teams. Following the recommendation in their Blue Ribbon Economic Panel report, the owners had originally proposed sharing 50% of local revenues."
This means that 34% of the Reds' local net goes into a pool with the other 29 teams' local net. Each of the 30 teams then shares equally out of this pool.
"Central Fund Revenue Sharing: $72.2 million (based on 2001 revenue figures) taken from clubs which are net payers in the base revenue sharing plan and given to those who are net receivers. This amount will fluctuate in conjunction with the base plan, and is phased in: 60% in 2003, 80% in 2004, 100% in 2005-06. Money is paid and disbursed in proportion to a club's distance from the average. Fluctuations intended to assure that the projected amount of revenue is transferred each season from the combination of local and central fund revenue sharing."
The rich teams give welfare to the poor ones ona sliding scale.