Inside MLB’s Financials – Part IV: Franchise Values

Major League Baseball’s financial landscape has evolved significantly in recent years. Record revenues, soaring franchise values, and new revenue streams are shaping the game off the field. This in-depth five-part analysis will break down how MLB teams make money and spend it. It will also compare financial figures across the league, and zoom in on the New York Yankees, the sport’s most valuable franchise.

One of the best indicators of the sport’s financial health is franchise valuations. Both Forbes and Sportico publish annual estimates of what each MLB team is worth, and these values have reached all-time highs in 2025. The New York Yankees once again sit atop the list as the most valuable franchise, and overall MLB team values are up significantly from just a few years ago. Below is a comparison of the top five teams by valuation in 2025, according to the latest figures from Forbes (March 2025) and Sportico.

Sources: Forbes “Business of Baseball” 2025 valuations and Sportico 2025 MLB valuations.

As the table shows, the Yankees are in a league of their own financially. Forbes pegged the Yankees’ value at about $8.2 billion (up ~9% from 2024), while Sportico valued them slightly higher at $8.39 billion. This makes the Yankees not only the most valuable MLB team, but one of the most valuable sports franchises in the world (only a few NFL and NBA teams like the Dallas Cowboys or Golden State Warriors are in the same ballpark). The Yankees’ valuation is roughly $1.4 billion more than the next-closest MLB team, the Dodgers. The Dodgers, fresh off a World Series victory in 2024, saw their value surge. Sportico noted Los Angeles jumped 23% in value, to $7.73B, after their championship run and the high-profile signing of Shohei Ohtani. Forbes had the Dodgers at about $6.8B, indicating some differences in methodology, but either way these two clubs tower above the rest.

The Boston Red Sox rank third, valued around $4.8B (Forbes) or over $6B (Sportico). That gap suggests Sportico might be accounting for additional factors, but clearly the Red Sox remain a financial heavyweight. The Chicago Cubs and San Francisco Giants round out the top five, each in the $4–5B range depending on the source. Notably, Sportico’s valuations tend to be higher across the board; it pegged the average MLB franchise at $2.82 billion in 2025, whereas Forbes’ averages are a bit lower. Regardless, both sources agree that every MLB team is now worth over $1 billion, a stark change from a decade ago when several teams’ values were in the hundreds of millions. The Miami Marlins, long the least valuable club, are now estimated at $1.3B (Sportico) or roughly $1.05B (Forbes), meaning no franchise is below ten digits anymore.

What drives these huge valuations? It’s a combination of revenue growth and the inherent scarcity and prestige of MLB club ownership. Forbes noted that the Yankees’ $8.2B valuation is about 11.3 times their revenue, the highest multiple in the league. Investors prize the Yankees’ global brand and potential for future growth. Even smaller teams have seen their values double or more in recent years, partly due to expectations of future media deals, sports betting integration, and potential expansion fees. For example, the A’s, despite poor attendance and low revenue, carry a valuation of around $1.8B largely because of their planned move to Las Vegas and a new stadium on the horizon. Sportico reported MLB franchise values rose about 7% on average year-over-year, showing healthy growth, though it also pointed out MLB’s team valuations haven’t skyrocketed as fast as those in the NFL or NBA in recent years.

Revenues and operating incomes vary widely across MLB, but 2024 was a banner year in aggregate. League-wide revenues hit record levels, thanks to increased attendance and new revenue streams, and most teams were profitable on an operating basis with a few notable exceptions. The Yankees generated the highest revenue in the league, around $700+ million in 2024. CNBC calculated the Yankees’ revenue at about $705M after revenue-sharing adjustments, slightly higher than the ~$680M Forbes estimate. The second-highest revenue club was the Dodgers, around $620M+ net of sharing, though importantly, the Dodgers’ gross revenue was about $1.0 billion before sharing, a milestone that previously only global soccer giants (like Real Madrid) and the NFL’s Cowboys had hit. This underscores how much the Dodgers share with other teams and the league. Other big-market teams like the Red Sox ($520M), Cubs ($480M), and Giants ($440M) also generated well above the league average revenue (the average is roughly in the mid-$300 millions).

When it comes to operating profit or loss (earnings before interest, taxes, depreciation, and amortization), the 2024 season told an interesting story. Many lower-spending teams saw healthy profits, while a few high-spending contenders took losses. According to Forbes’ 2024 season estimates, the Seattle Mariners posted one of the highest operating profits at ~$86 million (on $365M revenue) by combining decent revenue with a modest payroll. Other clubs with lean payrolls and good seasons, such as the Baltimore Orioles and Pittsburgh Pirates, who reportedly had over $50M in operating income each. On the flip side, the New York Mets endured a massive $268 million operating loss in 2024. That eye-popping deficit was driven by owner Steve Cohen’s extravagant player spending (a $348M payroll plus over $97M luxury tax) and the Mets’ revenue, while large, not being on Yankees/Dodgers level. The San Diego Padres also spent aggressively and were estimated to lose on the order of $50M+ in 2024, and the Los Angeles Angels (despite missing playoffs) reportedly made around $40M profit, reflecting owner Arte Moreno’s choice not to push payroll as high.

Where do the Yankees stand in all this? Interestingly, Forbes estimated the Yankees had an operating loss of about $57 million in 2024. In other words, despite the highest revenue in MLB, the Yankees’ enormous expenses (player payroll, $62M luxury tax, revenue sharing payments, etc.) led to a slight loss on the yearly baseball operations ledger. This isn’t abnormal for a big contender, as the Forbes data showed, several large-market teams essentially chose to reinvest all their revenue (and then some) into chasing a title. Meanwhile, some rivals made money: Forbes had the Dodgers still eking out a $21M profit in 2024, and notably the Red Sox and Cubs were listed with sizable operating profits (on the order of $100M and $80M respectively) after those clubs kept their payrolls more restrained. In fact, by Forbes’ count, around 10–12 teams operated at a loss in 2024, while the rest made money, and the losses were mostly by design (teams overspending to try to win). The Yankees’ $57M loss is relatively small in the context of their $8.2B franchise value. Yankees ownership has clearly been willing to sacrifice short-term profit in order to field a competitive roster, something fans expect in the Bronx.

To summarize the financial rankings: the Yankees lead in franchise value and revenue, and remain among the top spenders, though clubs like the Dodgers are close behind in revenues and catching up in value. All teams are financially stronger in 2025 than a few years ago, thanks to revenue growth. But how teams deploy those resources varies, some run at a substantial profit, others reinvest heavily in talent. Next, let’s zero in on the Yankees’ own finances in 2025 and how they compare to the competition.