Revenue Sharing

Warm-Up posts are stream-of-consciousness. No structure, just random thoughts on a specific topic. They’re for quick concepts or ideas to be put into word as they come up. Consider it a spit-ball on this blogs wall.

JAN 18 – What if Indycar had a hard salary cap, salary floor, and some form of revenue sharing?

JAN 19 – What if each Indycar team had their own local track that was a part of each seasons schedule, and were able to generate revenue through their ‘home court’?

JAN 19 – Could Indycar adopt Max Mosley’s (by way of Tony Purnell) concept of a hard budget/salary cap? For F1 the idea was to cap at $40m and allow technical freedoms in specific areas, with the option to not run with the budget cap with much stricter technical regulations.

Apply that to Indycar, and set the cap at $5-8m, maybe have a hard floor of $1m. At that point you allow any chassis manufacturer, engine supplier, ancillary parts, fuel, tires to participate, and obviously the option to build pieces and parts in-house if you have the capability.

In theory, if a team can only pay so much of their budget toward a specific part or aspect of their operation, wouldn’t the cost of participation (across the board) regulate itself?

JAN 25 – General notes regarding the NBA Salary/Luxury Cap rules that I think would be interesting when applied to the Indycar Series:

While the soft cap allows teams to exceed the salary cap indefinitely by re-signing their own players using the “Larry Bird” family of exceptions, there are consequences for exceeding the cap by large amounts. A luxury tax payment is required of teams whose payroll exceeds a certain “tax level,” determined by a complicated formula, and teams exceeding it are punished by being forced to pay one dollar to the League for each dollar by which their payroll exceeds the tax level.


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