Major/Minor League Financial Obligation?

[Norberto7]

How does the major/minor league system work in terms of financials? Given the large number of minor league teams across the country, I would imagine that there would be a full spectrum of profitability (or lack thereof). Because if a minor league team goes under, then what happens to the player development?

So, is there any obligation from the parent club to its minor league clubs, or are they financially independent? Would it be a set payment or does it depend on need (i.e. minor league profitability)? Is there any revenue sharing among different levels of the system?

[Randar68]

How does the major/minor league system work in terms of financials? Given the large number of minor league teams across the country, I would imagine that there would be a full spectrum of profitability (or lack thereof). Because if a minor league team goes under, then what happens to the player development?

So, is there any obligation from the parent club to its minor league clubs, or are they financially independent? Would it be a set payment or does it depend on need (i.e. minor league profitability)? Is there any revenue sharing among different levels of the system?

The Sox pay half the salary of the players in the system and have final say on roster moves, coaches, etc. The minor league teams get some say in veteran signings, but for the most part, simply operate the marketing and stadium operations while the parent club dictates the players they will have.

[Norberto7]

Ah, thanks.