Could MLB revenue sharing/luxury tax work for MLS?

Discussion in 'MLS: Commissioner - You be The Don' started by vevo5, May 1, 2012.

  1. vevo5

    vevo5 Member

    Nov 23, 2011
    Nat'l Team:
    United States
    http://www.forbes.com/sites/kurtbadenhausen/2011/03/23/baseballs-most-valuable-teams/



    Revenue sharing / luxury tax

     
  2. JasonMa

    JasonMa Member+

    Mar 20, 2000
    Arvada, CO
    Club:
    Colorado Rapids
    Nat'l Team:
    United States
    No.

    (MLB is the most unbalanced league of the major U.S. sports.)
     
  3. HailtotheKing

    HailtotheKing Member+

    San Antonio FC
    United States
    Dec 1, 2008
    TEXAS
    Club:
    San Antonio Scorpions FC
    Nat'l Team:
    United States
    Anyone that thinks luxury tax is a good thing needs to die in a fire, twice.
     
  4. Achowat

    Achowat Member+

    Mar 21, 2011
    Revere, MA
    Club:
    New England Revolution
    Nat'l Team:
    United States
    The MLB Revenue Sharing model doesn't even work for Baseball.
     
  5. The Green Mushroom

    Oct 19, 2011
    Unquestionably, look at the teams from the first post listed as revenue receivers--they simply don't try to win, they just spend enough to attract a few fans to bad the revenue sharing handout into a profit.

    But the Marlins have a brand new stadium and tried to build a competitive team this year, you ask. Well true, they just found that the local taxpayer can give handouts that are just as sweet or even more sweet than the baseball owners who actually care about baseball.
     
  6. vevo5

    vevo5 Member

    Nov 23, 2011
    Nat'l Team:
    United States
    How so?

    Their TV rating, attendance, sponsorship are all doing great.
    The public interest in baseball is on the up.

    The league is the second most profitable league in the world after the NFL.
     
  7. DoctorD

    DoctorD Member+

    Sep 29, 2002
    MidAtlantic
    Club:
    Philadelphia Union
    Nat'l Team:
    United States
    So why should MLS imitate MLB when it can imitate the most profitable league, the NFL?
     
  8. HailtotheKing

    HailtotheKing Member+

    San Antonio FC
    United States
    Dec 1, 2008
    TEXAS
    Club:
    San Antonio Scorpions FC
    Nat'l Team:
    United States
    Anything that allows an owner to do absolutely nothing and take in 2-5m directly to their pockets (see former Tampa Bay owners) without meeting the most minimum of spending/team improvement requirements .... is a joke.

    Anything that dictates "because you're better at the business than most everyone else, and because you have the first rule of business nailed (location location location) you have to give a percentage of your just deserves to people that suck" ... is a joke.
     
  9. tardis73

    tardis73 New Member

    May 4, 2012
    Club:
    Swansea City AFC
    Nat'l Team:
    United States
    I do not mind revenue sharing as long as you implement a minimum the team must spend in order to try and be competitive. A prime example of how revenue sharing works Tampa Bay Rays Minnesota Twins and the Oakland Athletics these teams use that money to scout players build up their teams and then make a big run. Fan interest goes up a new stadium is built and revenue increases but like others have pointed out you would have owners just trying to do the bare minimum so it is a hard thing to try and implement.
     
  10. vevo5

    vevo5 Member

    Nov 23, 2011
    Nat'l Team:
    United States
    If EPL is forced to adopt either NFL model or MLB model, which do you think would make the most sense for the league?

    NFL model: A more competitive league overall in which Fulham/Sunderland/Wigan could win the title, sure. But how competitive would top EPL teams be in the Champions League? Will international TV rights, sponsorship, attendance go up or go down? Will star players stick around or migrate to other leagues instead that pay better?

    MLB model:
     
  11. vevo5

    vevo5 Member

    Nov 23, 2011
    Nat'l Team:
    United States
    I wrote this in another thread:


    If EPL is forced to adopt either NFL model or MLB model, which do you think would make the most sense for the league?

    NFL model: A more competitive league overall in which Fulham/Sunderland/Wigan could win the title, sure. But how competitive would top EPL teams be in the Champions League? Will international TV rights, sponsorship, attendance go up or go down? Will star players stick around or migrate to other leagues instead that pay better? Just picture EPL with a hard cap of $90 mil a year and imagine its effect on the elite teams and the league overall (prestige, tv revenue, sponsorship, attendance, competitiveness in Europe etc...)

    MLB model: It can be argued that EPL is already similar to the MLB model since there is significant revenue sharing in the EPL in term of TV revenue. All foreign tv rights (about $750 mil a year) is shared equally. And 50% of domestic tv rights ($950 million a year) is shared equally.

    It's easy to see why EPL would choose MLB model over NFL model. It is in EPL best interest.









    http://www.forbes.com/fdc/welcome_mjx.shtml





    Similar to EPL, MLS is competing on a global stage. Mexico for instance. If imitating the NFL is not the best course for EPL, why is it best for MLS?
     
    kilometers repped this.
  12. DoctorD

    DoctorD Member+

    Sep 29, 2002
    MidAtlantic
    Club:
    Philadelphia Union
    Nat'l Team:
    United States
    How many forums are you going to troll your schemes? This is, what, the third thread you've started on this?

    edit: in case you are serious, the answer is that MLS should be compared to the UEFA Champions League, not to EPL. It goes without saying the quality of play is far worse in MLS, but in terms of population and geographical area, the USA should be compared to the European Community. The EPL is like the California state league.

    Don't ask me why the CL isn't set up like the NFL. I think the Euros are foolish and clinging to antiquated ideas of "the state" that Americans abandoned in 1787, but that's what floats their boat.
     
  13. lkgf09

    lkgf09 Member

    Jun 7, 2004
    Brooklyn
    Club:
    New York Red Bulls
    Nat'l Team:
    United States
    Some people really need to get a clue.
     
  14. 4door

    4door Member+

    Mar 7, 2006
    Chicago
    Club:
    Chicago Fire
    Nat'l Team:
    United States
    Our 3rd DP spot is an example of MLS dipping their toes into their version of revenue sharing. If a club wants to bring in a 3rd player that is payed above the max salary they have to give $250,000 to the league and that money is divided up to the club that do not use a 3rd DP in the form of allocation money. We have that today. It is quite small because the league and our revenue is still quite small, but it is reasonable to assume that we are just going to expand this program to form our own revenue sharing. Imagine a time in the future where maybe teams are allowed to bring in as many DPs as they want at a sliding scale. First 2 are awarded by the league, the 3rd on costs $250,000, the 4th costs $350,000, the 5th costs $450,000...and so on. Maybe the ones you buy can be paid in full by the owner with no cap hit. So what you would have is the very ambitious clubs spending millions of dollars in order to sign top players and those millions getting sent back to the teams that are not as ambitious in the form of allocation.

    Its already quite clear that we share revenue within the single entity, and if the league sees the DP rule as its way to leverage squad budget growth, then it seems like they have already established a form of luxury tax. As the rule grows, we will see the impact of the tax becomes more apparent.
     
  15. Yoshou

    Yoshou Fan of the CCL Champ

    May 12, 2009
    Seattle
    Club:
    Seattle Sounders
    Nat'l Team:
    United States
    pc4th!! You're back!! Where's the poll?
     
    krudmonk repped this.
  16. vevo5

    vevo5 Member

    Nov 23, 2011
    Nat'l Team:
    United States
    MLS is a league that has competition in the form of Mexican League, etc....
    EPL is a league that has competition in the form of La Liga, Bundesliga, Serie A etc...
    UEFA CL is a tournament and has no competition.

    Agree with you that if Europe has a Super League with 20-24 biggest clubs, it should follow NFL model with hard cap and all. Because it will have no competition.

    But MLS can't be compare to UEFA CL because MLS has competition while UEFA CL does not. Comparing population size and geographical area has little relevant.


    It's much better for the EPL to imitate MLB rather than NFL (due to competition). Most people would agree on this point. Then, isn't also much better for MLS to imitate MLB rather than NFL (due to competition)?

    Hard cap like the NFL is best model if you're the top dog with no competition. It will work great for leagues like NFL, MLB, NBA, NHL, IPL (India), AFL (Australia).
     
  17. vevo5

    vevo5 Member

    Nov 23, 2011
    Nat'l Team:
    United States
    Under MLB model, MLS can overtake the Mexican League in a relatively short time. Seattle, Los Angeles, New York, Toronto etc.. with their full potential unleashed will be a force to be reckon with. These teams are backed by billionaires. They can raise the profile of MLS tremendously. Under MLB model where Toronto was allowed to use their off the field success to buy better players, where would Toronto be today?


    Under NFL model, it will take MLS a very long time to overtake the Mexican League. In my opinion, MLS needs at least a $8-10 mil salary cap in order to be on par with the Mexican League today.



    I would venture a guess that under MLB model, MLS will overtake the Mexican League in 4-5 years. Under NFL model, MLS will overtake the Mexican League maybe in 15-20 years.
     
  18. LordRobin

    LordRobin Member+

    Sep 1, 2006
    Akron, OH
    Club:
    Cleveland C. S.
    Nat'l Team:
    United States
    Have you ever considered that the primary goal of MLS is to make the league competition popular, profitable, and a powerful player in the American sports market? And that international competition is, and will probably always be, a secondary goal, meaningful only if it helps achieve the primary goal?

    I swear, some supposed "MLS fans" would burn down half the league if it meant one or two superclubs could kick around the Mexican teams.

    ------RM
     
  19. RedRover

    RedRover BigSoccer Supporter

    Aug 15, 2007
    MLB model = NASL, 1968-1984. NFL model = MLS, 1996-Present. NASL lasted 17 seasons, where they had 9 teams remaining in their final season, when they had as many as 24 a few years earlier. MLS is entering its 17th season with 19 teams - the most they've ever had - and a very healthy TV contract with NBC that they signed this season.

    Same life spans, MLS has never been stronger while the original NASL was on its deathbead.

    If that's the choices you have to offer us, then guess what: I'll take the NFL model in a heartbeat over the MLB one. And I would venture that the majority of people here - meaning, not the retarded ones like you - would also choose the NFL version as well.
     
  20. ceezmad

    ceezmad Member+

    Mar 4, 2010
    Chicago
    Club:
    Chicago Red Stars
    Nat'l Team:
    United States
    We really should be saying the CFL model.

    CFL teams can not (even if a club tournament existed) compete with NFL teams, yet Canadians do not care, they prefer a CFL equality model to keep a stable relatively shitty league over a league where Toronto would win every year so they could compete against the Dallas cowboys.

    Even if Concacaf/FIFA ever pulls the waiver for Canadian teams in MLS/NASL and the CSA creates a Canada wide league, I am sure they would use a model similar to MLS even if that means Canadian clubs getting their asses kicked in the CCL by American and Mexican teams.

    Is not different in Europe, even with league wide revenue sharing/caps; that would not change anything, it would still mean clubs from rich countries will still dominate the Champions league.

    http://en.wikipedia.org/wiki/List_of_European_countries_by_GDP_(nominal)

    A league wide CAP for Europe would mean Spanish clubs would fall to 5th or 6th on the UEFA rankings, based on GDP per country.

    Not much would change, German, English, French, Italian teams would still dominate the Champions league and Poland, Romanian, Swedish teams would still get their asses kicked.
     
  21. HailtotheKing

    HailtotheKing Member+

    San Antonio FC
    United States
    Dec 1, 2008
    TEXAS
    Club:
    San Antonio Scorpions FC
    Nat'l Team:
    United States
    For the OP .... Bayern Munich is in the CL final. That should lend you a good hint for the answer you're looking for.

    However, all luxury tax is shit. That's really the root of it all.
     
  22. vevo5

    vevo5 Member

    Nov 23, 2011
    Nat'l Team:
    United States
    MLB = NASL, 1968-1984????

    MLB has revenue sharing and luxury tax.
    NASL did not.

    Do you really believe that if MLS adopt MLB model for 2013 and beyond, it will kill the league?

    If MLS adopts MLB model

    1. there will be a competitive unbalance. Teams with high revenue will get better players. For example, Seattle, New york, Los Angeles, Toronto ($8-12 mil salary budget).
    2. transfer fee paid will become much more common
    3. there will be significant revenue sharing/luxury tax ($1-2 mil from each high earners to low earners)
    4. TV ratings will increase
    5. Attendance for top clubs like Seattle, New york, Los Angeles, Toronto will increase
    6. Attendance for bottom clubs like New England, Columbus, Colorado, Dallas, San Jose will decrease
    7. MLS will do much better in the CONCACAF CL
    8. Some Mexican football fans might take an interest in MLS since MLS will be viewed as on par with the Mexican League
    9. Sponsorship will increase for top clubs.
    10. Sponsorship will decrease for bottom clubs.


    If soccer leagues like Chinese Div 1, J-league, K-league, Columbia Div 1 etc... can survive with MLB model (without the revenue sharing and luxury tax), it's safe to say MLS can survive with the MLB model that DOES have revenue sharing and luxury tax.
     
  23. HailtotheKing

    HailtotheKing Member+

    San Antonio FC
    United States
    Dec 1, 2008
    TEXAS
    Club:
    San Antonio Scorpions FC
    Nat'l Team:
    United States
    Show your work.

    Then, after you've done that, please explain how any owner in their right mind would agree to give another owner money for doing absolutely jack shit all.
     
  24. Achowat

    Achowat Member+

    Mar 21, 2011
    Revere, MA
    Club:
    New England Revolution
    Nat'l Team:
    United States
    Probably true...and definitely bad
    Which, judging by baseball, will be a drop in the bucket. That luxury tax is really keeping the Pirates afloat, right?
    Yeah, here's where you're going to need to show your work.
    Caring about the CCL is a cultural thing, and something likely not helped by draining money from San Jose and giving it to Los Angeles
    Mexican football fans like Mexican football. That's like saying College Football fans or NFL fans will watch more CFL if they raised their cap. It's bogus and insulting.
    More work to show, when you get a chance
     

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