MLB Team Values Soar, But Media Rights Cloud Future

Record valuations mask growing uncertainty over broadcasting revenue

Major League Baseball franchises are reaching unprecedented valuations, yet a looming shift in the media landscape casts a shadow over the sport’s financial future. The New York Yankees have become the first MLB team worth over $8 billion, signaling continued growth, but concerns are rising about how teams will monetize their product in a changing broadcast environment.

Yankees Lead the Pack, Dodgers Close Behind

The Forbes list reveals the New York Yankees are now valued at an estimated $8.2 billion, maintaining their top spot for the 26th consecutive year. The Los Angeles Dodgers follow closely behind at $6.8 billion, experiencing a significant 25% increase in value after their World Series victory.

Even teams facing short-term challenges are seeing gains. The Oakland A’s, despite playing in a minor league ballpark for the next three seasons, have experienced a 50% valuation jump to $1.8 billion, fueled by optimism surrounding their planned move to Las Vegas.

Warning Signs Emerge Amidst Growth

While the average MLB team value has risen to a record $2.6 billion—an 8% increase—not all franchises are thriving. Four clubs—the St. Louis Cardinals, Seattle Mariners, Colorado Rockies, and Tampa Bay Rays—have seen their valuations remain flat year-over-year. The Chicago White Sox even experienced a 2% decline, falling to $2 billion.

The sale of the Baltimore Orioles to David Rubenstein for $1.725 billion last year was priced at 5.3 times revenue, a lower multiple than those seen in the NBA and NFL. According to Statista, sports sponsorship revenue in North America is projected to reach $23.49 billion in 2024, with MLB experiencing significant growth, but still trailing behind the NFL and NBA in overall revenue generation. Statista

Media Rights a Critical Concern

The core issue facing MLB is the evolving media landscape. The NFL has secured a guaranteed $126 billion in national media money through 2033, and the NBA is set to collect $76 billion over 11 years. MLB’s current deals with ESPN, Fox, and TBS were worth $12.9 billion over seven years, but the league recently agreed to let ESPN opt out of the final three years of their arrangement.

The collapse of Diamond Sports Group, now Main Street Sports Group, has further complicated matters, forcing several teams to scramble for new broadcast partners and accept significant revenue reductions. Local cable revenue, which accounts for 19% of MLB teams’ total income, is considerably higher than in the NBA (13%) or NFL (essentially negligible).

MLB Adapts and Explores New Strategies

Despite these challenges, MLB is actively exploring new revenue streams. Commissioner Rob Manfred is pushing for a more centralized model, potentially bundling local media rights and tying domestic rights to international opportunities. The excitement surrounding Shohei Ohtani and the Los Angeles Dodgers is also driving increased sponsorship interest and viewership in Asia.

With rule changes designed to shorten games and increase action, MLB saw regular-season attendance exceed 71 million fans in 2024—the highest figure since 2017. Teams averaged $407 million in total revenue, an 8% increase from the previous year. The Minnesota Twins are reportedly seeking $1.7 billion in a sale, while the A’s are targeting a $2 billion valuation for a minority stake.

The coming years will be pivotal for MLB as it navigates the complexities of the modern media landscape and seeks to maintain its position as a premier sports league.