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Recent evaluations by CNBC reveal that the average value of a Major League Baseball (MLB) team has reached $2.62 billion. This figure highlights the financial strength of the league amidst various market challenges.
Leading the list is the New York Yankees, valued at $8 billion, making them the most valuable team in MLB. In the broader context of North American sports franchises, the Yankees rank third overall, trailing only the Dallas Cowboys of the NFL, valued at $11 billion, and the Golden State Warriors of the NBA, valued at $9.4 billion. Interestingly, the Los Angeles Rams from the NFL are also evaluated at $8 billion.
According to the same evaluations, the Yankees reported the highest revenue in MLB history during the 2024 season, amassing $705 million. This figure includes adjustments for revenue sharing, underscoring the Yankees’ robust financial performance.
The Los Angeles Dodgers, another prominent franchise, are valued at $5.8 billion and stand as the second-most-valuable team in baseball. As the reigning World Series champions, the Dodgers earned $701 million in revenue during the 2024 season, despite paying over $120 million in revenue sharing. They became only the second team, alongside the Yankees, to exceed $600 million in revenue for that season.
Examining the enterprise value-to-sales ratio, MLB teams have an average multiple of 6.4, in contrast to 10.1 for the NFL, 11.9 for the NBA, and 8.6 for the NHL. This lower multiple for MLB reflects recent transactions, with the Baltimore Orioles being the latest team sold for $1.73 billion, representing only 5.3 times their revenue.
In comparison, the Washington Commanders of the NFL were sold in 2023 for $6.05 billion, which equates to 11.1 times their revenue. The Dallas Mavericks from the NBA changed hands for $3.33 billion, or 8.9 times revenue, illustrating the premium prices seen in those leagues.
MLB’s financial landscape is currently affected by several factors. The decline of regional sports networks and uncertainties surrounding national television rights—especially following ESPN’s announcement to opt out of its agreement with MLB—pose significant challenges. Additionally, the absence of a salary cap in MLB contrasts sharply with other leagues, where such structures contribute to healthier profit margins. Earnings before interest, taxes, depreciation, and amortization (EBITDA) margins in MLB hover around 5%, whereas similar margins in the NBA, NFL, and NHL are about 20% due to their salary cap systems.
Nonetheless, there’s a compelling case for viewing MLB as a potential value investment. The league’s revenues are still on the rise, with figures from the 2024 season reaching a record $12.1 billion, marking an increase of $500 million from the previous year. Attendance, ticket sales, and sponsorship revenues also hit historical highs.
Looking forward, international opportunities seem promising for MLB. A recent two-game series held in Japan between the Dodgers and the Chicago Cubs at the start of the 2025 season showcased significant fan engagement and enthusiasm, demonstrating baseball’s global appeal. Projections indicate that MLB revenue could increase by approximately 3% in 2025.
“While local media challenges are undeniable, I believe that MLB is currently undervalued compared to other sports leagues and may have the potential to bridge that gap,” noted Steve Greenberg, a managing director at Allen & Company specializing in sports and media.
For those interested, CNBC has shared its methodology for ranking MLB teams.
— CNBC’s Tafannum Rahman contributed to this report.
Source
www.cnbc.com