New NBA revenue sharing

[ranger001]

Have you guys seen the details on the revenue sharing. here is something I saw.

League projections call for about 15 of the league’s 30 teams to receive payments from the new revenue sharing plan, with seven of the 15 neediest teams, such as the Milwaukee Bucks, Memphis Grizzlies, Charlotte Bobcats and Sacramento Kings, to receive a distribution of roughly $16 million after the new system is fully phased in, up from the nearly $5.8 million maximum that teams could have received this year.

http://www.sportsbusinessdaily.com/Jour ... venue.aspx

Sources said that the core of the plan calls for all teams to contribute an annually fixed percentage, roughly 50 percent, of their total annual revenue, minus certain expenses such as arena operating costs, into a revenue sharing pool.

Each team then receives an allocation equal to the league’s average team payroll for that season from the revenue pool. If a team’s contribution to the pool is less than the league’s average team payroll, then that team is a revenue recipient. Teams that contribute an amount that exceeds the average team salary fund the revenue given to receiving teams.

[HartfordWhalers]

I thought this was interesting:

the new plan calls for small-market teams to generate at least 70 percent of the leaguewide average in total team revenue in order to receive full revenue-sharing benefits. Large-market teams must generate 130 percent of the leaguewide team revenue average. Should a team fall short of its expected revenue, it must make up the difference in its level of contribution.

There tends to be significant debate on these boards as to what is a large/mid/small size market, and here they had to make that distinction with significant money on the line.

[ranger001]

Who decides which teams are large or small market though I wonder. So obviously LA, Chicago, NY are large market. What about teams like Toronto. I can see teams trying to game the system so they don't have to "make up the difference".

[Dunkenstein]

Who decides which teams are large or small market though I wonder. So obviously LA, Chicago, NY are large market. What about teams like Toronto. I can see teams trying to game the system so they don't have to "make up the difference".

The number of TV households in a team's market area is used to decide what category a team falls under.

[ranger001]

Do you have details on what the criteria is for the different levels?

[DBoys]

I have heard it said that there is a revenue sharing penalty for those teams who exceed the tax line. Maybe even a disqualifier, where being a taxpayer means you don't get ANY revenue sharing, even if you would otherwise qualify.. But i don't see that in the article.

Does anyone have any info regarding that possibility?

[Gilles]

Coon doesn't mention anything about this in his FAQ.

[DBoys]

Coon doesn't mention anything about this in his FAQ.

in the

The FAQ is about the CBA which is the agreement between players and owners. Revenue sharing is between owner and owner, therefore it isn't a player matter and doesn't get outlined in the CBA.