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<blockquote data-quote="HardRightEdge" data-source="post: 489181"><p>There are three key difference between the NFL and MLB:</p><p> </p><p>(1) MLB has a cap, but it is not a hard cap. MLB teams can go over the cap by paying a <strong>cash</strong> fine, which is distributed to the poorer teams. The Yankees come to mind, of course. You can go over the the cap in the NFL, but the penalty is in <strong>cap space</strong>, not cash, and that cap space is distributed to the other teams. The Redskins' and Cowboys' caps were docked this past season for abusing the gentleman's agreement in the uncapped 2010 year. I think it was the Redskins who got hammered with at $20 mil cap penalty. All the the other teams got something like a $2 mil cap bump in 2012 for those two teams' transgressions. It is not hard to see why a rich, big market MLB team (Yankees) view the cash cap penalties as just a cost of doing business in order to improve competitiveness, thereby buying TV eyeballs. NFL cap penalties hammer competitiveness...nobody wants to go there.</p><p> </p><p>(2) In MLB, local media revenues are mostly not shared. National media in total, and partially the gate, are shared in MLB as in the NFL. But those unshared local media dollars are substantial and create a massive gap between, for example, the Yankees and the Royals. Again, the Yankees pull in massive local media money, sign tons of free agents, keep a competitive team on the field, keep people watching on TV, and then just pay the cash fine.</p><p> </p><p>(3) Baseball contracts are guaranteed. NFL contracts are guaranteed only on a contract-by-contract basis, as negotiated between team and player, and as a matter of practice are never fully guaranteed.</p><p> </p><p>What is interesting about all of this is you'd expect the NFL to have more competitive balance, with (1) and (2) outweighing (3). But team rotation at the top of the standings doesn't seem any greater in the NFL than in MLB. In both cases, certain teams stay highly competitive for long stretches, a few rise and fall in playoff contention each year, and a few teams fall into long stretches as perennial doormats. Somehow, despite the financial differences between the two, in the end talent selection and getting good bang for the buck determines competitiveness..."money ball" in whatever talent selection formula happens to work.</p><p> </p><p>What the NFL structure does accomplish is most teams make a decent to good return on investment; a few don't. Though ownership is still partially an ego/hobby proposition in most cases, rich guys don't like losing money, so that makes NFL ownership very attractive.</p><p> </p><p>Many MLB teams don't qualify as good investments. The hobby/ego/civic interest aspects must be stronger to own many of these teams.</p></blockquote><p></p>
[QUOTE="HardRightEdge, post: 489181"] There are three key difference between the NFL and MLB: (1) MLB has a cap, but it is not a hard cap. MLB teams can go over the cap by paying a [B]cash[/B] fine, which is distributed to the poorer teams. The Yankees come to mind, of course. You can go over the the cap in the NFL, but the penalty is in [B]cap space[/B], not cash, and that cap space is distributed to the other teams. The Redskins' and Cowboys' caps were docked this past season for abusing the gentleman's agreement in the uncapped 2010 year. I think it was the Redskins who got hammered with at $20 mil cap penalty. All the the other teams got something like a $2 mil cap bump in 2012 for those two teams' transgressions. It is not hard to see why a rich, big market MLB team (Yankees) view the cash cap penalties as just a cost of doing business in order to improve competitiveness, thereby buying TV eyeballs. NFL cap penalties hammer competitiveness...nobody wants to go there. (2) In MLB, local media revenues are mostly not shared. National media in total, and partially the gate, are shared in MLB as in the NFL. But those unshared local media dollars are substantial and create a massive gap between, for example, the Yankees and the Royals. Again, the Yankees pull in massive local media money, sign tons of free agents, keep a competitive team on the field, keep people watching on TV, and then just pay the cash fine. (3) Baseball contracts are guaranteed. NFL contracts are guaranteed only on a contract-by-contract basis, as negotiated between team and player, and as a matter of practice are never fully guaranteed. What is interesting about all of this is you'd expect the NFL to have more competitive balance, with (1) and (2) outweighing (3). But team rotation at the top of the standings doesn't seem any greater in the NFL than in MLB. In both cases, certain teams stay highly competitive for long stretches, a few rise and fall in playoff contention each year, and a few teams fall into long stretches as perennial doormats. Somehow, despite the financial differences between the two, in the end talent selection and getting good bang for the buck determines competitiveness..."money ball" in whatever talent selection formula happens to work. What the NFL structure does accomplish is most teams make a decent to good return on investment; a few don't. Though ownership is still partially an ego/hobby proposition in most cases, rich guys don't like losing money, so that makes NFL ownership very attractive. Many MLB teams don't qualify as good investments. The hobby/ego/civic interest aspects must be stronger to own many of these teams. [/QUOTE]
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