Through the conclusion of the 2024 season, Major League Baseball (MLB) received an unprecedented financial injection. As a result, their total revenue skyrocketed to an all-time high of $12.1 billion, a half-billion dollar hike from last year. It’s this type of growth that underscores how lucrative the league has become, as it continues to draw in fans and sponsors in droves. At this time, the New York Yankees and Los Angeles Dodgers were the two biggest revenue producing clubs. Their success is testament to how far they’ve come to dominate the league.
The New York Yankees paced the other franchises with a staggering $705 million in revenue for the 2024 season. Nipping at its heels, the Los Angeles Dodgers brought in $701 million. These numbers underscore the impressive financial power of these teams. Perhaps more importantly, they’re used to flaunt their place atop the cultural food chain that is American professional sports.
The Yankees come in a close second, having shown tremendous economic power with an extraordinary overall worth of $8 billion. This astonishing valuation ranks them third overall among all North American sports franchises, behind only the Dallas Cowboys and the Golden State Warriors. The Dodgers have the highest valuation at $5.8 billion. This bolsters their reputation as one of the model franchises in professional sports.
The average MLB franchise is up at an enterprise value of $2.62 billion, with an enterprise value-to-sales multiple of 6.4. To investors, MLB teams are great assets. That recent sales on the sports market only serve to reinforce this perception. Just one year later, the Baltimore Orioles sold for a record $1.73 billion. On the other hand, the NFL’s Washington Commanders raked in a shocking $6.05 billion just in 2023.
On a comparative basis of valuations across leagues, the NFL teams bring in the most money per team. The Rams are now worth $8 billion, and the Cowboys are still #1 at $11 billion. California’s Golden State Warriors have jumped to an incredible $9.4 billion valuation. This underscores the intense competition between big league franchises.
Even with these astounding numbers in mind, there are industry experts who warn that outside influences might make things tough for teams in the long run. “Local media headwinds are real,” said Steve Greenberg, an Allen & Company managing director focused on the sports and local media industries. His statement belies continued concerns as to whether local broadcasting agreements and the current state of the market will allow for future revenue.
That’s just the tip of the iceberg on MLB’s financial success – all this is about ticket sales and jerseys. Third are lucrative media rights deals and sponsorship agreements. Teams like the Yankees and Dodgers are rolling in cash. To every other franchise with possible expansion delusions, their every success forces you to want to join their growth.
Meanwhile, MLB revenue continues to soar, underscoring one of the critical trends plaguing professional sports. If franchises are currently the extremely rare incredibly valuable assets. MLB teams grow in value annually. Both of these boosts are a testament to their powerful and robust fan bases – along with smart business endeavors.