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If a 30-team league is contemplating expanding by two teams, how much money should it charge each new franchise to ensure that during the first year of the new 32-team league, each of the existing 30 owners will receive the same amount of revenue as they would have without the expansion? (Assume each owner earns $40 million per year from media contracts and $10 million per year from licensed merchandise sales, that the league will continue to share these revenues equally after the expansion, and that the media contracts are not scheduled to be renegotiated until a year after the expansion is completed.)


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