Revenue Sharing
Sharing of both local team revenue and league revenue is common in many professional team sports leagues to ensure the financial survival of clubs and/or to increase competitive balance. While revenue sharing improves the financial stability of teams in the league, the impact of revenue sharing on competitive balance in a league is complicated. In many sports, home teams agree to split “gate” revenue —the amount of money taken at a sporting venue from ticket sales—with visiting teams at a previously agreed-on ratio. In some European football leagues, revenue from the sale of broadcast rights—a big revenue source—is not shared equally but is split into three parts. ...
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