Revenue Sharing

[Horsehide Harry]

Does anyone know where the line is regarding the Braves revenue in terms of sharing? Do "outside the park" revenues such as the Battery contribute to the taxable amount? I would think not. What about parking? I would think so, but what about subway teams? Concessions? Inside/outside, specialized/non-specialized?

I read a blurb on Baseball-Reference that says in 2018 each MLB team received $118M from revenue sharing that was generated by taking 48% of local revenues, putting it in a pot with each team getting 3.3% of the total (I would assume that the remaining 1% goes to MLB). The same article also stated that each team received an equal share of National revenues which was $91M.

So each team, if the above is correct, starts with a baseline of $209M (always calculated in arrears) PLUS whatever is generated from the 52% of local revenues NOT subject to revenue sharing, PLUS whatever revenue the team makes that is completely outside of the baseball team such as, potentially, the battery.

To me, this is fascinating. I have tons of questions.

https://www.baseball-reference.com/bullpen/Revenue_sharing

 

[Snowman]

If I recall correctly (very possible I do not), this is only the TV money. So the Braves deals with Fox are our local, and MLB's deals with Big Fox, ESPN, et all is the national. And then there's a separate split of gate revenue between the two teams teams playing, of course, which I think is something like 80-20. Things like concessions and parking are usually split with the city as part of the deal over the building of the park.

 

[Horsehide Harry]

If I recall correctly (very possible I do not), this is only the TV money. So the Braves deals with Fox are our local, and MLB's deals with Big Fox, ESPN, et all is the national. And then there's a separate split of gate revenue between the two teams teams playing, of course, which I think is something like 80-20. Things like concessions and parking are usually split with the city as part of the deal over the building of the park.

I don't think local TV revenue is part of the equation. It looks like merchandising may be and internet revenue is definitely. I'm also not sure about luxury tax as it appears to go into the pool, and I guess, is given back to the taxed team in part as part of their overall split (if your luxury tax is ~$30M, then you get ~$1M of that back after the split).

 

[Horsehide Harry]

One of my biggest questions is the revenues generated from the battery and other local revenue streams. I would assume that it IS NOT part of the revenue shared.

 

[zitothebrave]

One of my biggest questions is the revenues generated from the battery and other local revenue streams. I would assume that it IS NOT part of the revenue shared.

I'm sure the battery is not part of revenue sharing. It would be like counting the businesses around inner city ball parks like Fenway for it.

 

[TheBravos]

I just hate the whole “Some teams get extra draft picks” with it. How the HECK do the Cardinals qualify...yet they do.

 

[Snowman]

I don't think local TV revenue is part of the equation. It looks like merchandising may be and internet revenue is definitely. I'm also not sure about luxury tax as it appears to go into the pool, and I guess, is given back to the taxed team in part as part of their overall split (if your luxury tax is ~$30M, then you get ~$1M of that back after the split).

No, I'm positive local TV money is part of it. I'm unsure on the rest. Local TV money, the team keeps about 2/3rds and the other third is split equally 30 ways. That was a relatively recent (within the last 15 years) change.

 

[Russ2dollas]

The point of the battery is to make money and not have to share it with players or teams.

 

[Horsehide Harry]

The point of the battery is to make money and not have to share it with players or teams.

Which was my guess. And that's probably a good thing for Braves fans in terms of payroll since to keep the max number of people coming to the battery, they would need a good MLB team as a draw.

But, bottom line, with the money the Braves are bringing in and given the situation surrounding the new park, there is no excuse for them to not be in the top third, at least, of ML payrolls.