I think the revenue sharing model works fine. The luxury tax model is worthless though. With the 2006 cap at 136.5M it doesn't do a damn thing. The threshold shoul dbe closer to 100-110M. Instead of having a fixed percentage based on how many times hte team exceeds the cap, it should be an escalating %. If the threshold is 100M, then it could follow this:
10% on the first 10M
20% on the second 10M
30% on the third 10M
40% on anything else
Last year, only NYY and BOS paid luxury taxes. They paid 34M and 4M respectively. If it was done the way I proposed above it would work out like this:
Code:
NYY $213.10 $39.24
BOS $141.90 $10.76
NYM $119.20 $2.84
LAA $115.90 $2.18
SEA $111.90 $1.38
One other thing. In order to prevent parasitic teams from just taking the revenue sharing money and running. If a team's salary does not equal 1.5x the money they got via revenue sharing (averaged over like 5 years to account for rebuilding) they lose revenue sharing elibility for the next five years.
/I didn't know Seattle spent so much money last season. Ouch!