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They are extrapolating from the percentage of revenue other sports with a salary cap allocate to player salary. If baseball is worth 9 billion and if 50% is player salary, which is comparable to football and basketball, then you get about 150 million per team for payroll. Of course this doesn't take into effect the much larger expenses involved with playing 162 games vice 16 games for football or the cost of the minor leagues etc.
Reinsdorf is a moron. If he tries to smack the union, he'll get smacked right back. They were cowed by the roids thing, but the roids thing is basically over.
Assuming MLB revenues keep increasing, a $150 million salary cap is highly realistic in the near future.
In 2013, MLB took in 8.5 billion dollars. Assuming 50% of revenues will be used for a salary cap, the hypothetical 2014 salary cap would be 141.66 million dollars. If you put a 90% salary floor, the hypothetical 2014 floor would be 127 million dollars.
I think that assumes near-100% revenue sharing. Baseball revenues are growing, true, but individual teams are still lagging far enough behind the average that they won't be able to support a salary floor in the 100 millions.
The CEOs of privately-held and some publicy-held corporations have been known to choose their successors, typically their heirs, even though they are employed by the Board of Directors and serve at their discretion. It's in the interest of all involved to see to a smooth transition. [/quote
No it's not, it's more important to hire the best replacement even if it rocks the boat.
And I believe this is rare in private companies, but common in public companies. Shareholders in public companies are not allowed to pick directors, the board is self perpetuating cronies and former company execs. In public companies, most CEOs control their boards, so they control their successors.
And believe it or not, I was CEO of a private company before. My board members protected their investments, as they should, I was not consulted in my replacement.
Although at last look, MLB salaries is around 58% of revenue so even without forcing the teams the league on average is spending a good amount...drawback of course is that the money is top heavy.
Where do you get 58 from? A Forbes article from January says 47% (but is admittedly only counting salary and benefits for the 40-man roster)
Of course, a large portion of revenue goes to players' salaries. In baseball, 59.5% of revenues goes directly to players,
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