Quote:
Originally Posted by TX_Flame
Player salaries COME OUT OF HRR. More revenue, but more teams to divide it up between as well.
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HRR by definition, are not net of salaries, which I thought is what you were saying. My mistake.
Your conclusion though that it is a zero sum game is not accurate. Even without including expansion fees, the expansion to new markets should increase revenue at a faster rate than the dilutive effect of adding two new teams. For example, I think the Canadian TV contract allows for an escalator when a new Canadian market joins. As others have stated, it is tricky to estimate depending on the average contribution of existing teams vs. new teams but I suspect the new teams will be accretive. That is one of the reasons the league wanted to see the results of the season ticket drive in LV. They don't add to add a team that will be a drag on league results (although ponying up $500M would make that easier to swallow).