March 7th, 2010

No Wonder The Media Elites Promote Socialism: They Don't understand What It is

Posted by: Barry Secrest
Published on March 7th, 2010 @ 11:17:40 pm , using 347 words

Posted in Events and Issues: Credible Resources

Note From Conservative Refocus Editor:

If we were to draw a correlation between Socialism and Capitalism, as per the below editorial,we would have to take the proceeds from each league team and each league player and split it up among each of the citizens of the entire country. This would probably work out to maybe a few bucks per person.

And yet, read on and at least understand, how some of the supposed erudite do not even slightly understand how revenue sharing and contractual ceiling limitations actually promote a certain amount of control --when trying to deal with a players union in conjunction with the complexities of running a franchised business.

BLS

Globe Editorial

NFL: Socialism makes everyone rich

The Tea Partiers are right. There is socialism in the United States. It’s called the National Football League. In fact, this fantastically successful experiment in corporate socialism is now at risk of being ruined by owners and players who are threatening to behave as rational market actors.

The league’s business practices contradict the tenets of a free market. With its salary cap and salary floor that oblige all 32 franchises to spend the same amount on players each year, the NFL effectively prohibits any team from gaining an investment advantage over its competitors.

A draft order that bestows the highest picks on the weakest teams punishes winners and rewards losers. And at the root of all this leveling is the owners’ collectivist arrangement to divvy up TV revenue equally among themselves.

But now the owners are complaining that a salary cap based on the players receiving nearly 60 percent of total gross revenue has become an unbearable burden for some franchises. And players don’t want to change the formula if they can’t see the owners’ books. So this year is already uncapped and next year could bring a lockout. Labor and management are making an omelet out of a golden egg and threatening to kill the goose that laid it. Karl Marx could explain this; it’s definitely not in the playbook of either Ron Paul or Sarah Palin.