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
A media market, broadcast market, media region, designated market area (DMA), television market area, or simply market is a region where the population can receive the same (or similar) television and radio station offerings, and may also incl ...
. 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 tax
A luxury tax is a tax on luxury goods: products not considered essential. A luxury tax may be modeled after a sales tax or VAT, charged as a percentage on all items of particular classes, except that it mainly directly affects the wealthy becau ...
es, and / or
salary cap
In professional sports, a salary cap (or wage cap) is an agreement or rule that places a limit on the amount of money that a team can spend on players' salaries. It exists as a per-player limit or a total limit for the team's roster, or both. Sever ...
s 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