Major League Baseball: sharing revenue, not success

Major League Baseball implemented revenue sharing to create incentives for ball clubs to build their teams and build their fan base. It’s ended up having the opposite effect, according to a business professor at Washington University in St. Louis. The amount a small-market team receives from the league may be more profitable than the revenue it gets from winning a game. Michael Lewis proposes an alternative way of distributing MLB revenues that creates incentives for ballclubs to create good teams and fill stadiums. (video available)