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***Steve*** · 03-26-2010, 01:18 PM

DeMaurice Smith, NFL Revenue sharing, and redistribution of wealth

Smith and the NFLPA believe that the union has a say in decisions about NFL Revenue sharing. They do not. The distribution of league revenues is strictly a league function beyond the issue of how much the players get off the top. Remember that the NFL is a 10 Billion dollar a year industry so little percentages mean a lot.

Last week in preparing for the NFL meetings, a couple of owners suggested that the NFL business model is out of date. They are right but not for the reasons they think. When the league or an owner talks about changing the business model, they are really talking about changing the formula by which the TV, apparel, and other blocks of revenue are divided. Right now the league splits about 70% of that pool of money evenly with all 32 teams. Big dollar owner believe that percentage should be reduced so that the teams generating the most money would get to keep more of it. Oddly enough, the low revenue teams don’t think that is a good idea.

How much of a problem is the issue of redistribution of wealth? Reportedly, the Redskins who are one of the highest revenue teams generates 100 million more than the Bills or the Bucs.

The NFL model is out of date because so many teams now have large debt from building new stadiums. To see my suggestions on what the NFL should do to raise more money, check out my article on http://nfldraftdog.com/nfl-news-notes.html.

Here is the problem in a nutshell—Unless the league continues to share revenue at the current rate teams will be dissolve. Teams like Buffalo, the Jags, the Bucs and others will be in deep trouble. But if the league does not make provisions for the economics and technological pressures that are coming, more teams than that could go as well.

That’s what I think. Let me know what you think.

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