Question

Are the New York Yankees correct when they claim that revenue sharing simply rewards teams that do not try to win?

(economics of sports)

Answer 1

Moral hazard like for lower revenue team , when they pocket their all money from sport and don't investment on talent of players and thus on thinking about profit and not about winning or becoming more competitive team.

According to some research it find out that this model reduce teams Winning chance as they don't try their best and not compete in the matches or league and thus this reduce their winning chance percentage.

By setting a policy under this model in which We can make teams more competitive by using /require of a minimum payroll for players and also setting up "how much amount "should be invested on pool of talent on player and thus make league more competitive.so in such way revenue sharing model can be make more effective and useful for player as well as team competitivness in the games.