In the terminology of professional sports in North America, teams are often said to be based not in a city but in a
media market. The size of the media market is usually a good indication of the potential viability of a
major league team. A small market team is likely to struggle to compete financially against teams from larger markets and may therefore also be outbid in the competition for top talent. This has led to calls for
revenue sharing
Revenue sharing is the distribution of revenue, the total amount of income generated by the sale of goods and services among the stakeholders or contributors. It should not be confused with profit shares, in which scheme only the profit is share ...
,
luxury taxes, and / or
salary caps in most North American sports leagues in order to ensure competitive balance or parity.
See also
*
List of North American media markets
External links
Column: "Small Market Mania"by Jonathan Phillips, ''Sports Illustrated''
''Handbook on the Economics of Sport''by Wladimir Andreff and Stefan Szymanski
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Terminology used in multiple sports