Welcome to our deep-dive series on the business of baseball. In this five-part series, we’ll break down how Major League Baseball (MLB) teams generate revenue, which clubs are turning profits (or bleeding cash), why franchise ownership is such a lucrative long-term play, how market size impacts team finances, and finally provide a financial snapshot of all 30 teams. Whether you’re an MLB insider or a casual fan, we’ve got you covered with relatable examples and the latest numbers from the 2024 season. Let’s play ball (financially speaking)!
Every MLB club is a business at its core, and they have several major revenue streams that keep the lights on, and the players paid. Here’s a breakdown of how teams made their money in 2024, with some relatable examples:
Game Day Revenue (Tickets & Ballpark Sales)
A huge chunk of a team’s income comes from fans walking through the turnstiles. Ticket sales, along with concessions (think hot dogs and beer) and parking, are often called “gate receipts”. In 2024, MLB attendance rebounded strongly as over 71 million fans attended games, the highest since 2017. This surge at the gates means big bucks: for example, the Los Angeles Dodgers drew nearly 4 million fans and reportedly get $300 million a year from ticket sales before selling a single hot dog. Tickets and game-day spending historically account for roughly one-third of a team’s revenue. When a team is winning or a superstar is in town, expect packed stadiums and booming sales (the 2024 World Series saw record merch and concession sales in stadiums). Conversely, empty seats (looking at you, A’s) mean a serious revenue shortfall.
Media Rights (National and Local Broadcasts)
Baseball is made for TV (and radio). Every team benefits from national media deals that MLB negotiates. For example, national TV contracts with Fox, ESPN, TBS and others pour roughly $1.8 billion into MLB’s coffers annually. That money is split evenly among all 30 teams, providing a nice baseline revenue for even the smallest markets. On top of that, teams strike local TV contracts with regional sports networks to televise their games. These deals can be massive. For example, the Dodgers’ local TV deal is valued at around $8.35 billion over 25 years, which works out to be over $300 million per year. Popular teams like the St. Louis Cardinals draw huge local ratings. In Albert Pujols’ final season, Cardinals games quadrupled the viewership of the next most popular cable program in St. Louis. On average, local media rights contribute about 25% of team revenues, a higher reliance on local TV/radio deals than the NBA or NHL. However, 2024 wasn’t all smooth sailing: the bankruptcy of Diamond Sports (operator of many Bally Sports regional networks) disrupted local broadcasts for 14 teams and put some of those payments in question. Still, media rights remain a financial powerhouse, and MLB is even considering new models (like direct-to-consumer streaming) to keep those dollars flowing.
Sponsorships & Advertising
From the billboard on the outfield wall to the logo on the players’ sleeves, corporate sponsorships are everywhere in baseball. Teams strike deals with sponsors for stadium naming rights, signage, promotional nights, and since 2023 even uniform patches. For instance, the San Diego Padres inked a high-profile jersey patch deal with Motorola reportedly worth $9 million per year. In 2024, many teams expanded sponsorships: the Orioles added a patch from T. Rowe Price, the Red Sox wear a MassMutual patch, etc. While these deals might make traditionalists cringe at the added ads, they provide a steady revenue stream. League-wide, sponsorship and advertising income (including things like behind-home-plate rotating ads and in-game promotions) contribute significantly. MLB’s overall revenue jumped 10% from 2022 to 2023 in part due to new sponsorships. Teams in big markets usually have an edge here (more businesses to partner with), but even smaller-market clubs get creative to attract sponsors (think local brands or regional chains). In short, those logos you see around the ballpark translate to millions in the bank for teams.
Merchandise & Licensing
Every time you buy a jersey, cap, or even a bobblehead, the teams and league are cashing in. Merchandise sales are pooled through MLB’s central licensing program and then shared, but a team’s popularity (and star players) will drive how much merch fans purchase. The 2024 season saw record merchandise sales during the postseason. For example, the World Series merch sales broke records both in-store and online. When the Dodgers clinched the title in 2024, their fans set an all-sports record for merch sold in the 24 hours after a championship. Items from jerseys (Shohei Ohtani’s Dodger jersey was 2024’s top seller) to themed giveaways all fall under this category. It’s not just apparel, teams also earn licensing fees from video games, trading cards, and other products featuring their logos. In total, merchandise and licensing forms a smaller slice of the pie than media or tickets, but it’s still hundreds of millions of dollars league-wide each year, and it’s growing with e-commerce and international sales (MLB has been expanding abroad, meaning more fans buying gear globally).
Other Revenue (Postseason, Revenue Sharing, etc.)
Teams also make money from less visible sources. Postseason success, for example, can be lucrative, advancing in the playoffs yields bonus media revenue and higher ticket prices. The 2024 postseason was a windfall for teams like New York and Los Angeles that went deep. There’s also revenue sharing: MLB spreads the wealth by having teams contribute a portion of local revenues to a pool that’s redistributed to lower-revenue clubs. In 2024, this meant big-market teams essentially subsidized some small-market teams’ income. Additionally, many teams have interests in real estate around their ballparks (like The Battery complex next to the Braves’ stadium) or own sports networks, which can generate significant money (though the $12.1B league revenue figure excludes those ancillary real estate and network earnings). And let’s not forget special events: MLB London games, Field of Dreams game, concerts at ballparks in the off-season, all these can pad a team’s revenue.
Conclusion
MLB teams have a diverse set of revenue streams, with tickets/gameday, media rights, and sponsorship/merchandise being the big three. The 2024 season set a revenue record at $12.1 billion league-wide, thanks to booming attendance and media deals. A team like the Dodgers or Yankees might print money from sold-out games and massive TV contracts, while smaller-market clubs rely more on shared revenues and savvy marketing. In the end, a healthy mix of fans in seats, viewers at home, and sponsors on board keeps MLB’s business booming.
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