"Baseball has a class system like American society of upper, middle and lower. The fuzzy math to get to the narrative is always the same old story that all baseball owners are billionaires who don't spend enough on payroll - except for the Dodgers. Fans of their favorite teams don't care what level of wealth you have, they want their owners spending it to improve their teams. There is a level of romanticism in that - but also some delusion."
""A lack of a salary cap in the [MLB] has also hurt the bottom line. The NBA, NFL and NHL, all of which have salary caps, boast margins for earnings before interest, taxes, depreciation and amortization, or EBITDA, of about 20%. In contrast, MLB, which does not have a salary cap, has an EBITDA margin of 5%, according to CNBC's calculations.""
"Since only the Atlanta Braves are publicly traded, they are the sole team that is required to post their financial statements. They lost a lot of money in 2024, and made money for 2025 in the same season they hosted the All-Star game. The 2026 season will be a pivotal year to see what their financials look like. For the rest of the teams, we must rely on CNBC and Forbes as both publications do profit & loss estimations as well as team valuations."
Baseball's financial landscape mirrors a social class system of upper, middle and lower tiers, with fans demanding owners spend to improve teams regardless of wealth. Most clubs operate like standalone businesses aiming to avoid losses, while some owners profit from revenue-sharing payments. The current revenue-sharing model fails to promote competitive balance and faces scrutiny during upcoming collective bargaining negotiations. The absence of a salary cap depresses MLB's EBITDA margins compared with capped leagues. The Atlanta Braves are the only public franchise and reported losses in 2024 followed by profits in 2025; broader team valuations and P&L estimates rely on CNBC and Forbes.
Read at TalkNats.com
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