The Business of Baseball--Forbes--Pirates, Royals, & Devil Rays EACH EARNED MORE THAN $20Million

But the biggest story is the effect revenue sharing is having on the league's economic landscape. Most of the money comes courtesy of the New York Yankees, which paid a record $77 million toward baseball's revenue sharing system. The Boston Red Sox, baseball's No. 2 revenue sharer, paid only $51 million. Such generosity by Yankees owner George Steinbrenner, required by the league's rule that teams pay 34% of their net local revenue to help make poorer teams more competitive, is the reason why the Oakland Athletics, Minnesota Twins and Kansas City Royals increased in value by more than 20%.

Revenue sharing also had a profound impact on operating income. The Yankees and the Red Sox lost $50 million and $18.5 million, respectively, before interest, income taxes and depreciation. By not using their subsidies to boost player payroll (which was the intent of revenue sharing), the Pittsburgh Pirates, the Royals and the Tampa Bay Devil Rays each earned more than $20 million.

This doesn't include an additional $34Million paid by Yankee fans to MLB & its owners for 'luxury tax...'

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