Baseball Panel Urges Revenue Sharing

N E W  Y O R K, July 14 -- Baseball’s latest economic study committeerecommended a vast increase in revenue sharing and possiblefranchise moves, but it did not say the sport needs a salary cap.

To increase competitive balance, the committee today urgedbaseball to impose a 50 percent luxury tax on payrolls above $84million; proposed sharing 40 percent to 50 percent of local revenues afterballpark expenses; and recommended that national broadcasting andlicensing revenue be distributed unequally to assist low-revenueclubs, provided that they meet a minimum payroll of $40 million.

The New York Yankees, with a payroll of about $115 million,would have to pay a tax of about $15 million, under the committee’sproposed formula. Minnesota has the low payroll, about $20 million.

The panel recommended that players born outside the UnitedStates be included in the amateur draft, that there be an annual“competitive balance draft,” and that baseball relocatefranchises “when necessary to address the competitive issuesfacing the game.” No specific cities were mentioned.

In addition, the panel said baseball should expand its domesticand international promotion of the sport.

Haves and Have-Nots

“We do not pretend to believe these changes will be easy oruniversally popular,” said former Senate Majority Leader GeorgeMitchell, one of the panelists. “We do believe them to be asolution to the alarming disparities between baseball’s haves andhave-nots. We offer them to the commissioner, the ownership ofMajor League Baseball, the players and to the fans of the game.”

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Also on the panel were former Federal Reserve board chairmanPaul Volcker, Yale president Richard Levin and politicalcommentator George Will.

Baseball has not moved a team in almost 30 years.

“If an area doesn’t want to support a team, that answersitself,” Volcker said.

“Clubs that have little likelihood of securing a new ball parkor other revenue-enhancing activities should have the opportunityto relocate,” Mitchell said.