Negotiating The League Constitution (including revenue sharing arrangements)
franchise owners must write a league constitution. They must
decide how to initially share league revenue and how to make
adjustments to this agreement later in the season. Franchise
owners must also decide whether they wish to implement a cap
on payrolls. Franchise owners will report this agreement to
the commissioner before the season begins.
franchise owners must decide how revenue will be shared in the
league. The teams determine how broadcast revenue, ticket revenue,
concessions revenue, and merchandise revenue will be shared
among franchise owners. Because teams are located in markets
with varying degrees of attendance and television draws, the
owners must decide how to fairly distribute revenue. Students
may discuss the differences between the National Football League
and Major League Baseball. The teams discuss revenue sharing
alternatives and salary caps, and they illustrate their implications
on competitive balance in the league.
sharing arrangements may be renegotiated at any time during
the simulated season. The franchise owners must include in their
constitution how they will agree to change a previous agreement.
In other words, will a rule change may require a majority vote,
two-thirds vote, or a unanimous vote.