Revenue Sharing Idea
Posted: Tue Aug 11, 2009 5:05 pm
I don't know what framework the league has in regards to revenue sharing but an idea that I had could at least provide for a skeleton of a deal.
First off, you would take the top 10 teams in the league from a corporate sponsor and broadcast revenue standpoint and have them share with the teams in the bottom 10.
You would then add up the total amount of that revenue among the top 10 teams and have them put 25% of it in a pot. For example, if the total is $300 million, they would put 75 million in the pot. In order to figure out what share of 75 each team would put in, you would have to figure out what % of the 300 million. For example, if the Lakers gross 60 million in corporate and broadcast revenue, that would be 20% of 300, therefore they would put 20% of 75 in the pot for a total of $15 million.
As far as how they would divide up the money among the bottom feeders, I assume that it would be an even 7.5 million per team.
First off, you would take the top 10 teams in the league from a corporate sponsor and broadcast revenue standpoint and have them share with the teams in the bottom 10.
You would then add up the total amount of that revenue among the top 10 teams and have them put 25% of it in a pot. For example, if the total is $300 million, they would put 75 million in the pot. In order to figure out what share of 75 each team would put in, you would have to figure out what % of the 300 million. For example, if the Lakers gross 60 million in corporate and broadcast revenue, that would be 20% of 300, therefore they would put 20% of 75 in the pot for a total of $15 million.
As far as how they would divide up the money among the bottom feeders, I assume that it would be an even 7.5 million per team.