Commanders Post at The Warpath - View Single Post - Good/Bad News for a Change - 2013 18MM cap penalty probably (not) going away

Giantone · 02-27-2013, 08:35 PM

To clear up some questions...

Revenue Sharing in the NFL

The NFL's revenue-sharing model is universally lauded as the reason pro football continues to thrive in tiny markets like Green Bay, Wisconsin.
The bulk of the league's revenue - approximately $4 billion in 2011 - comes from broadcast deals with NBC, CBS, Fox, ESPN and DirecTV. That income is shared equally among all teams. Income from licensing deals - everything from jerseys to posters to team-logo beer coolers - is also shared evenly.
Ticket revenue is split using a slightly different formula: the home team keeps 60 percent of "the gate" for each game, while the visiting team gets 40 percent.Other sources of revenue - things like the sale of luxury boxes, stadium concessions and the like - are not shared, which does give teams in bigger markets or with state-of-the-art arenas a significant edge in profitability. The new CBA attempts to remedy that in two ways. First, the league will set aside a percentage of revenue in a stadium fund, which will be used to match teams' investments in their facilities. Second, there will be an additional "luxury tax

02-27-2013, 08:35 PM	#1
Giantone Gamebreaker Join Date: Apr 2006 Posts: 14,587	Re: Good/Bad News for a Change - 2013 18MM cap penalty probably (not) going away To clear up some questions... Revenue Sharing in the NFL The NFL's revenue-sharing model is universally lauded as the reason pro football continues to thrive in tiny markets like Green Bay, Wisconsin. The bulk of the league's revenue - approximately $4 billion in 2011 - comes from broadcast deals with NBC, CBS, Fox, ESPN and DirecTV. That income is shared equally among all teams. Income from licensing deals - everything from jerseys to posters to team-logo beer coolers - is also shared evenly. Ticket revenue is split using a slightly different formula: the home team keeps 60 percent of "the gate" for each game, while the visiting team gets 40 percent.Other sources of revenue - things like the sale of luxury boxes, stadium concessions and the like - are not shared, which does give teams in bigger markets or with state-of-the-art arenas a significant edge in profitability. The new CBA attempts to remedy that in two ways. First, the league will set aside a percentage of revenue in a stadium fund, which will be used to match teams' investments in their facilities. Second, there will be an additional "luxury tax __________________ ....DISCLAIMER: All of my posts/threads are my expressed typed opinion and the reader is not to assume these comments are absolute fact, law, or truth unless otherwise stated in said post/thread.