03 March 2010

A somewhat blind stab at revenue sharing . . .

In a recent article at Baseball America, Maury Brown discusses revenue sharing. He wrote:

Revenue-sharing money comes from two pools. One is central fund revenue, which comes from national television and radio deals, Major League Baseball Advanced Media, merchandise sales and the newly formed MLB Network. Each of the 30 clubs got a check for about $30 million in 2009 through this arrangement.

The other pool is the one that has created tension between small- and large-revenue clubs, as it is the one that transfers money between franchises. This pool is made up of net local revenues, such as ticket sales, concessions and media deals that each club negotiates for television and radio.

What is uncertain is how the second pool is dispersed. The following numbers are based on the total of 433MM of revenue sharing reported in the Biz of Baseball. I then merely assumed the money was paid out similarly to the 2005 scheme, but that is probably a rather large assumption.

Tampa Bay Rays 45.9MM
Marlins 43.1MM
Blue Jays 43.1MM
Royals 41.7MM
Pirates 34.8MM
Tigers 34.8MM
Brewers 33.4MM
Twins 31.6MM
Athletics 26.4MM
Reds 22.3MM
Rangers 22.3MM
Diamondbacks 18.1MM
Indians 8.3MM
Phillies 8.3MM
Padres 8.3MM
Nationals 5.6MM
Orioles 2.8MM

This method would suggest that Scott Boras was correct in his assertations earlier this offseason. It also suggests that MLB cuts a check for the Orioles at the tune of 32.8MM.

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