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Old 01-20-2008, 01:22 AM   #9 (permalink)
Le Grande Orange
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Join Date: Feb 2002
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Quote:
Originally Posted by darkcloud4579 View Post
The link leads to a blank page.

Another way to understand how the luxury tax works, and more importantly, how revenue sharing works, is to read the relevant sections in the CBA.

I'd point out that the luxury tax is not that important; it usually only affects one or two teams, and the money collected from the tax does not go to the other MLB teams. Instead, it goes into a fund to promote baseball in the U.S. and other countries.

Revenue sharing is of a much greater impact, but works rather differently in MLB than it does in OOTP. In fact, MLB's version is actually fairly straightforward in how it operates. Teams pay a flat percentage of the amount of their payroll above the MLB average into the pool, and teams below the average payroll collect funds from the pool in proportion to how far below the average they are.
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