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In general, it's an agreement between the teams in the league to throw some (or even all) of the revenue that they individually make into a large pot for equal distribution among all the teams.
Example: A three team league. Team #1 puts $10 million in revenue into the pot. Team #2 throws $5 million into the pot. Team #3 throws $3 million into the pot.
Each team would then get $6 million out of the "revenue sharing plan".
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