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To Share Or Not To Share: Revenue Sharing Structures In Professional Sports, Justin R. Hunt
To Share Or Not To Share: Revenue Sharing Structures In Professional Sports, Justin R. Hunt
Justin R Hunt
To Share Or Not To Share: Revenue Sharing Structures In Professional Sports Since the creation of profit-sharing by the American Football League in 1959, professional sports leagues have relied on revenue sharing to promote competitive balance among member organizations, despite varying economic conditions and market capacities. Every league acknowledges that the purpose of a revenue sharing agreement is to allow a closer range of payroll spending that might otherwise not be accomplished, preventing large market teams from controlling the allocation of high-priced free agents. These revenue sharing arrangements rely on the collaborative efforts of league members to maximize revenue from …