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Monday, March 08, 2021

MLB To Adopt Modified, Loan-Based Revenue Sharing Plan For 2021 Season

After being halted in 2020 due to the pandemic, Major League Baseball’s revenue-sharing system between bigger-market and smaller-market teams will return in an altered form in 2021, The Athletic’s Evan Drellich reports (subscription required).  Smaller-market clubs will only receive half of the normal amount of funds this year, with the other half coming in 2022.  The league itself will be covering the 2021 payments in a loan deal, with the larger-market teams expected to eventually pay MLB back.

“Expected” may be a loaded term, however, as Drellich notes that there are still several details about this plan that are unclear, or are open to interpretation based on comments from executives from different teams.  One exec from a large-market team believes MLB’s loan is just for the sake of optics (“They can say whatever they want for politics, the understanding is it’ll never be paid back“), while a league source insists otherwise.

There also isn’t much clarity on when exactly big-market teams will have to pay back the league, or the other 50 percent of the 2021 payments directly to the smaller-market clubs, as commissioner Rob Manfred purposely “retained the ability to change payment schedules and the amounts paid based on economic conditions.”  It is also possible that the next Collective Bargaining Agreement could change the revenue-sharing system significantly, so the loan repayment plan could be adjusted after the current CBA expires in December.

RoyalsRetro (AG#1F) Posted: March 08, 2021 at 01:59 PM | 0 comment(s) Login to Bookmark
  Tags: revenue sharing

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