When Major League Baseball (MLB) owners locked out its players as they worked on a new Collective Bargaining Agreement (CBA), few knew how well it would work out for either side. Just over six months later, it appears the agreement they struck in March is already benefiting franchises in terms of their bottom line value.
The new CBA contains several sources of sponsorship revenue for Major League teams, including sports gaming and top sportsbook apps, and uniform branding opportunities that include jersey patches and helmet decals. These new revenue streams helped push up average values by 9% over last year’s all-time high.
Additionally, the new CBA expands the playoffs to 12 teams, with a new best-of-three wild card round series, adding television revenues of $65 million per year for these additional games alone. That is on top of the $2 billion dollars over 3 years that ESPN is paying for broadcast rights and recent streaming deals between MLB and Apple and NBC Peacock.
With these new revenue deals in place, the New York Yankees found themselves again to be the most valuable team in baseball, with a net worth of $6 billion. They trail only one other sports organization: the Dallas Cowboys football team whose value has grown by over 50% since last year to just under $7.5 billion dollars.
Top 10 Most Valuable MLB Franchises
1. New York Yankees
Value: $6 billion
One-Year Change: +14%
Owner: Steinbrenner family
2. Los Angeles Dodgers
Value: $4.075 billion
One-Year Change: +14%
Owner: Guggenheim Baseball Management
3. Boston Red Sox
Value: $3.9 billion
One-Year Change: +13%
Owner: John Henry, Thomas Werner
4. Chicago Cubs
Value: $3.8 billion
One-Year Change: +13%
Owner: Ricketts family
5. San Francisco Giants
Value: $3.5 billion
One-Year Change: 10%
Owner: Greg Johnson
6. New York Mets
Value: $2.65 billion
One-Year Change: 8%
Owner: Steve Cohen
7. St. Louis Cardinals
Value: $2.45 billion
One-Year Change: 9%
Owner: William DeWitt Jr.
8. Philadelphia Phillies
Value: $2.3 billion
One-Year Change: 12%
Owner: Middleton family, Buck family
9. Los Angeles Angels
Value: $2.2 billion
One-Year Change: 9%
Owner: Arturo Moreno
10. Atlanta Braves
Value: $2.1 billion
One-Year Change: 12%
Owner: Liberty Media
Baseball Valuations Post COVID
The last two seasons have been difficult for franchises as they struggled with the COVID pandemic. Back in 2019, teams’ operating income averaged over $50 million, but lost an average of $44 million per season over the last two years. In 2022 with attendance returning, it’s predicted that about 3/4 of teams this year will show an operating profit.
This return to prosperity isn’t limited to the top market teams. An example is the Texas Rangers who experienced a 15% increase in value from last year, the most among all Major League Baseball franchises. The team’s new ballpark Globe Life Field opened to fans in 2020 and hosted the World Series that same year, and currently has the 7th best attendance in the American League despite the team struggling.