Revenue sharing in sports

Revenue sharing in sports involves distributing earnings—such as ticket sales, broadcasting rights, and merchandise revenue—among various teams or stakeholders within a league. This system aims to promote competitive balance by ensuring financially stronger teams support others, preventing wealth disparities from creating unfair advantages. For example, a league may pool certain revenues and distribute a portion equally among all teams, helping smaller clubs remain competitive. Revenue sharing fosters financial stability across the league, encourages investments in team development, and enhances overall competitiveness and entertainment value for fans.