Which move would be more effective for increasing the level of competitive balance in baseball, a hard salary cap or a 50-50 gate revenue-sharing plan?

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The Answer is First of all, gate revenues are only a small portion of total revenues collected in professional sports, so even complete sharing of gate revenues will leave some teams with significantly higher revenues. Even if all revenues are shared equally, however, players still flow to the same teams they would have gone to if there were no revenue- sharing. When teams evenly split revenue they effectively put all their revenue in a pile in the middle of the room and then divide the pile equally among themselves. If teams maximize profits, they want to make the pile as large as possible. If a star player is more valuable in Los Angeles than in Cleveland, then the pile in the middle of the room is larger-and the revenue for Los Angeles and Cleveland-will be greater if the player moves to Los Angeles. Thus, even a 50-50 revenue split may have little impact on the distribution of talent or competitive balance. A hard salary cap limits what a team can pay its players. Even if a player is worth more in Los Angeles then in Cleveland, Los Angeles may not be able to lure him away if it is already spending close to its limit on its other players. This limit evens out what teams can spend for players and has the potential for evening out the distribution of talent.

Which Move Would Be More Effective for Increasing the Level