Revenue Sharing

[mcHAPPY]

Revenue sharing among 'have' and 'have not' teams is a major issue with the current labour situation. I do not think it is something the players should have a say on though.

What do you think is a fair arrangement for revenue sharing?

[Apollo]

I'm not sure if it should be an even split because it penalizes organizations who perform to the point where they lose the incentive, while stragglers get a free lunch. I think that a portion of T.V. contracts and other revenue streams should go into a pot with everyone getting a fair share. A "fair share" may not necessarily be an even split either. For example, just because Ontario may be getting equalization payments that doesn't mean the wealthy province of Albert should get them. The money needs to go where it's needed most. You're only as strong as your weakest link... I'm not referring that Onartio is the weakest link, just using them for the scenario. There still needs to be an incentive for teams who aren't bringing in good money to get better. I can't see the league's books so I don't know how much needs to be shared to make it work.

My fear with revenue sharing is what if it's enough to make the Teachers want to keep the Raptors? Bad thought, I know...

[j bean]

It doesn't seem like an issue that should hold up an agreement with the players. It's more of an owners thing though it is important in keeping small market teams competitive. I think what the NFL does is split the agreed to revenues equally with the exception being that the large market teams receive 10% less.

[Apollo]

I agree. It's none of the PA's business. It's in the Owners overall best interest to have better revenue sharing and that's why they're probably moving on it.

[Tim W.]

I'm not sure if it should be an even split because it penalizes organizations who perform to the point where they lose the incentive, while stragglers get a free lunch. I think that a portion of T.V. contracts and other revenue streams should go into a pot with everyone getting a fair share. A "fair share" may not necessarily be an even split either. For example, just because Ontario may be getting equalization payments that doesn't mean the wealthy province of Albert should get them. The money needs to go where it's needed most. You're only as strong as your weakest link... I'm not referring that Onartio is the weakest link, just using them for the scenario. There still needs to be an incentive for teams who aren't bringing in good money to get better. I can't see the league's books so I don't know how much needs to be shared to make it work.

My fear with revenue sharing is what if it's enough to make the Teachers want to keep the Raptors? Bad thought, I know...

Whether Raptor fans want to believe it or not, Toronto is a `have' team. At least financially. They are a large market team with a broad fan base and are consistently one of the more profitable teams in the league. Where they aren't a `have' team is on the court. So any revenue sharing is only going to affect them negatively, if at all.

[mcHAPPY]

Whether Raptor fans want to believe it or not, Toronto is a `have' team. At least financially. They are a large market team with a broad fan base and are consistently one of the more profitable teams in the league. Where they aren't a `have' team is on the court. So any revenue sharing is only going to affect them negatively, if at all.

Very good point.

I thought I read somewhere Toronto was actually 5th in revenues. If anyone can correct it, back that up, or provide a source, feel free.

[Apollo]

Whether Raptor fans want to believe it or not, Toronto is a `have' team. At least financially. They are a large market team with a broad fan base and are consistently one of the more profitable teams in the league. Where they aren't a `have' team is on the court. So any revenue sharing is only going to affect them negatively, if at all.

It depends on where you want to class them. Are they making money? I would bet yes. Are their profits in line with the big markets? I'd guess not even close. They're probably not in the red but as is they can't sling it out with the big boys until there is a harder barrier for teams wishing to take advantage of spending more than others and there is revenue sharing so that the teams spending the big coin have less to spend and the teams who don't have the big coin to spend have more of it to spread around. I do think the Raptors would benefit from revenue sharing of some sort even if it is not directly.

Very good point.

I thought I read somewhere Toronto was actually 5th in revenues. If anyone can correct it, back that up, or provide a source, feel free.

I'd love to see that article. It would be all the more reason to wish for the Teachers to get the hell out of Dodge.

[Bendit]

Very good point.

I thought I read somewhere Toronto was actually 5th in revenues. If anyone can correct it, back that up, or provide a source, feel free.

http://www.forbes.com/lists/2011/32/...s-11_land.html

[Apollo]

Something not captured in that article is the currency conversion. The Raptors earn a lot of their money in CAD and pay their biggest expense in USD. Most times that's working against them. Good find though Bendit.

The Raptors are 6th in operating income. This was probably what Matt was referring to, not the total revenue.

[planetmars]

I'd love to see that article. It would be all the more reason to wish for the Teachers to get the hell out of Dodge.

Found the article here: http://www.forbes.com/lists/2011/32/...s-11_rank.html

Toronto is ranked 10th in value, but 6th in operating income.


The complete list:

1 New York Knicks 655 12 0 226 64.0
2 Los Angeles Lakers 643 6 19 214 33.4
3 Chicago Bulls 511 0 11 169 51.3
4 Boston Celtics 452 5 40 151 4.2
5 Houston Rockets 443 -6 16 153 35.9
6 Dallas Mavericks 438 -2 46 146 -7.8
7 Miami Heat 425 17 38 124 -5.9
8 Phoenix Suns 411 -4 45 147 20.4
9 San Antonio Spurs 404 1 10 135 -4.7
10 Toronto Raptors 399 3 34 138 25.3
11 Orlando Magic 385 6 29 108 -23.1
12 Golden State Warriors 363 15 41 119 14.3
13 Detroit Pistons 360 -25 0 147 31.8
14 Portland Trail Blazers 356 5 30 127 10.7
15 Cleveland Cavaliers 355 -26 56 161 2.6
16 Utah Jazz 343 0 5 121 -3.9
17 Philadelphia 76ers 330 -4 23 110 -1.2
18 Oklahoma City Thunder 329 6 43 118 22.6
19 Washington Wizards 322 3 40 107 -5.2
20 Denver Nuggets 316 -2 9 113 -11.7
21 New Jersey Nets 312 16 224 89 -10.2
22 Los Angeles Clippers 305 3 0 102 11.0
23 Atlanta Hawks 295 -4 63 105 -7.3
24 Sacramento Kings 293 -4 32 103 -9.8
25 Charlotte Bobcats 281 1 53 98 -20.0
26 New Orleans Hornets 280 5 69 100 -5.9
27 Indiana Pacers 269 -4 56 95 -16.9
28 Memphis Grizzlies 266 4 56 92 -2.6
29 Minnesota Timberwolves 264 -1 19 95 -6.7
30 Milwaukee Bucks 258 2 21 92 -2.0

[mcHAPPY]

It depends on where you want to class them. Are they making money? I would bet yes. Are their profits in line with the big markets? I'd guess not even close. They're probably not in the red but as is they can't sling it out with the big boys until there is a harder barrier for teams wishing to take advantage of spending more than others and there is revenue sharing so that the teams spending the big coin have less to spend and the teams who don't have the big coin to spend have more of it to spread around. I do think the Raptors would benefit from revenue sharing of some sort even if it is not directly.



I'd love to see that article. It would be all the more reason to wish for the Teachers to get the hell out of Dodge.

Going through Forbes evaluations, the Raptors are 10th in revenue and are 6th in operating income.

Keep in mind Forbes does not have all the numbers and a lot of what they do is based on estimates.

http://www.forbes.com/sites/mikeozan...uable-teams-2/

OOOPs: I see people already found this.

[Apollo]

This article also supports the league's claim that over half the league is losing money. I'm counting 17 teams. Surprisingly Detroit is not one of them.

[mcHAPPY]

This article also supports the league's claim that over half the league is losing money. I'm counting 17 teams. Surprisingly Detroit is not one of them.

Surprisingly San Antonio, Miami, and Dallas operated at a loss in 2010.

Once Durant's and Westbrook's extensions kick in, along with Ibaka and Harden, OKC will be operating at a loss as well if revenues do not increase.

Orlando is also the type of team that even with a punitive luxury tax, the owner has deep pockets and will finance operating at a loss. They currently operate at the biggest lose according to Forbes.

[TheGloveinRapsUniform]

Whether Raptor fans want to believe it or not, Toronto is a `have' team. At least financially. They are a large market team with a broad fan base and are consistently one of the more profitable teams in the league. Where they aren't a `have' team is on the court. So any revenue sharing is only going to affect them negatively, if at all.

I agree. I read somewhere (cant post source) that the Raptors is one of the profitable teams in the NBA. What i cant put my finger on is, HOW??? We've only been to the playoffs twice in 7 years and still the attendance is constant? Me, im an avid follower but i dont have money for tickets.

What i do know is that a lot, if not most of the tickets are bought by corporations as gifts for their employees or for entertaining clients. my mom works for a big sponsor and they get tickets by the hundreds. same with my aunt who works for a different sponsor.

I guess it doesnt matter where the money comes from, as long as there's money coming in.

[Apollo]

Well, I'm not surprised about San Antonio. They had one of the highest cap numbers in the league last season. Dallas and Miami are surprising though.