MINNEAPOLIS – The Minnesota Twins have brought in new investment partners while the Pohlads retain majority ownership,a move executives say is designed to address mounting debt incurred during the COVID-19 pandemic,but also signals a broader financial challenge facing baseball franchises in smaller media markets.
The decision, announced earlier this month, comes as Major League Baseball navigates an increasingly uneven economic landscape, with revenue disparities widening between teams like the New York Yankees and Los Angeles Dodgers and those, like the Twins, operating outside the country’s largest media hubs. The team’s long-term financial stability is further complicated by upcoming collective bargaining negotiations, which could potentially disrupt the business of baseball. This situation impacts not only team owners and players, but also fans, local economies, and the future competitiveness of the league.
Joe Pohlad, executive chair of the Minnesota Twins and grandson of original owner Carl Pohlad, explained the partnership was a direct response to financial pressures. “That debt built up as we tried to invest in the fan experience [at Target Field] and in our team,” pohlad told the Minnesota Star Tribune in an interview published August 22,2024.”What we’ve found is that’s really challenging to do in this current economic model.”
The debt accumulation stemmed largely from the financial impact of the 2020 MLB season, when the pandemic forced the cancellation of approximately two-thirds of scheduled games and required teams to play in empty stadiums. Despite efforts to enhance the fan experience at Target Field and bolster the team’s roster,the Twins have struggled to generate revenue comparable to larger-market franchises.
An analysis conducted by CNBC in April 2024 revealed a significant revenue gap. The twins’ estimated gross revenue of $356 million for the previous year was roughly half that of the Yankees and Dodgers, both of whom exceeded $700 million in revenue.
This revenue disparity is reflected in player payrolls. As of August 30, 2024, the Twins’ 2024 payroll stands at $128 million, according to Cot’s Baseball Contracts, substantially less than the Yankees’ approximately $297 million and the Dodgers’ record-setting $338 million. The New York Mets, owned by Steve Cohen, carry a payroll of $336 million this season.
Carl Pohlad purchased the Minnesota Twins franchise 41 years ago, in 1983. The current move to bring in partners while maintaining majority control represents a strategic attempt to navigate the evolving financial realities of professional baseball and ensure the team’s continued viability in the years ahead. The outcome of the next collective bargaining agreement,expected after the 2025 season,will be a critical factor in determining the Twins’ future financial path.
