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)!
If you’re wondering why billionaire owners happily pay huge sums to buy MLB franchises (and sometimes operate them at a loss), here’s the secret: team valuations have exploded over the past decade, even with the COVID19 pandemic. Owning a baseball team can be like holding a winning stock, the long-term return on investment (ROI) can be enormous. Let’s dive into how franchise values have climbed and highlight some eye-popping examples from the last ten years.
Franchise Value Appreciation
Simply put, MLB team owners have been getting much richer just by holding onto their clubs. The average MLB franchise is valued at about $2.6 billion in 2025, up 8% from the previous year. Compare that to a decade ago, in 2014 the average team was worth around $811 million. That’s over a 3× increase in ten years or so. The growth is even more dramatic for top teams: the New York Yankees, long the most valuable franchise, were worth about $2.3B in 2012; now Forbes pegs them at $8.2B in 2025. This is roughly a 250% increase. The Los Angeles Dodgers, which were sold for $2 billion in 2012, are now valued at $7B+. That’s an incredible ROI for a bit over a decade. Even smaller-market teams have seen values double or triple. The Kansas City Royals, for example, sold for $1 billion in 2020; by 2023 they were valued at $1.2B (despite some on-field struggles). Nearly every team, even perennial bottom-dwellers, is worth over $1 billion now. The Miami Marlins are last at ~$1.05B, whereas a decade ago several teams were only in the $400–600M range.
A few cases really highlight why owners love that sweet, sweet appreciation. The biggest jump in 2024’s valuations was the Athletics. Despite poor revenue and attendance, their planned move to Las Vegas boosted their estimated value 50% year-over-year to $1.8B. In other words, simply announcing a future relocation turned the A’s into a much more valuable asset (the Vegas effect!). Another example: the Minnesota Twins were valued around $1.39B in 2022; a $1.5B offer to buy the team in 2023 was considered a lowball and rejected. Their current ownership believes it’s worth at least $1.7B now. Or consider the Baltimore Orioles: the franchise was valued at $1.4B in 2022; it sold to a new ownership group for $1.75B in late 2023, and by 2025 Forbes says it’s worth $1.9B. The previous owner essentially gained hundreds of millions in value by holding the team for a few years. Even the New York Mets, who run big losses, saw their value rise from $2.4B in 2020 (purchase price) to $3.2B by 2025, so owner Steve Cohen might lose $100M on operations in a year, but he’s gained far more than that in asset value.
Why the Values Keep Climbing
Several factors drive these impressive gains. Revenue growth is one. As we saw, MLB revenues hit a record $12.1B in 2024, and more revenue generally pushes franchise values up. But it’s also about scarcity and status. There are only 30 MLB teams, and ultra-wealthy investors will line up to pay top dollar for a chance to join the club (literally the club of MLB owners). Sports teams have a unique prestige and potential for ancillary business opportunities (real estate development, media networks, etc.). Moreover, the big money TV deals and the trend of live sports being premium content give confidence that teams will keep generating cash long-term. One point of context: while MLB values are soaring, their growth has lagged other leagues recently. Over the last five years, NFL team values jumped 87% (to $5.7B average) and NBA team values jumped 101% (to $4.4B average), but MLB clubs are “only” up 36% in that span. That slower growth has some worried that MLB might be hitting a ceiling compared to the NFL/NBA. Still, 36% in five years is nothing to sneeze at, it handily beats most stock market returns.
Cash Flow vs. Asset Value
It’s important to distinguish operating profit (annual cash flow) from franchise value. As we saw in Part II, an owner can claim to lose money year-to-year but still be sitting on a gold mine. Forbes itself notes that their valuations are based on “enterprise value (equity plus debt) based on historical transactions and future economics”, essentially what someone would pay to buy the team. And people will pay a lot! The fact that the Phoenix Suns (NBA) sold for $4B in 2023 likely helped raise the bar for MLB valuations, and any rumblings of an expansion or team sale send wealthy bidders into a frenzy. MLB teams also have tax advantages (like amortizing the team purchase price over several years to offset revenue), which means owners can enjoy paper losses and real gains simultaneously. No wonder new investor groups constantly try to get in on owning a piece of a team.
Conclusion
Owning a baseball team has proven to be a fantastic long-term investment. Team values across MLB have skyrocketed, roughly doubling or tripling over the past decade for many franchises. Owners may sweat annual losses in the short term, but they know the real payday is the increase in franchise valuation. From the Yankees to even the last-place Marlins, every MLB club is a billion-dollar asset now. This dynamic helps explain why owners might not panic about year-to-year profits, as the saying goes, they’re “making it up on volume” with the value gains. In short, winning the World Series is great, but selling your team for triple what you paid is the kind of win any owner can get behind.
No responses yet