Analysis

Should teams receiving revenue sharing earn a profit?

Should teams receiving revenue sharing earn a profit?

Hanley Ramirez - ZumaPress

The long-held assumption among many has been that Bob Nutting is pocketing a fortune as the Pirates principal owner. That he is ripping off the city of Pittsburgh. Now that it has become apparent that the team is making just a modest profit, the complaints among frustrated Pirates fans has shifted. Now, any profit is too much, as long as the team is losing. While this dramatic shift is somewhat comical, there is a more relevant issue. Should a team receiving significant revenue sharing be permitted to show even one dollar of profit?

Maury Brown has some thoughts:
Here’s a suggestion: Clubs can receive revenue-sharing, but if by the end of the year when the books are completed a club is shown to make a profit, those profits would go back to the league as a rebate where they would be funneled back to the payors of the subsidy. In doing so, clubs that need revenue-sharing get what they need, but not a cent more. You’re not saying, “Discontinue revenue...

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Analysis

Matt has covered the Pirates at Wait ‘Til Next Year, Pittsburgh Lumber Co. and now Pirates Prospects. He served as Pirates team expert for Heater Magazine in 2009 and 2010 and has contributed to Graphical Player 2009, 2010 and 2011. Matt was also the editor of the 2011 and 2012 Pirates Prospects Annuals.

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