Why do billionaires buy baseball teams?

By Eliott Steuernagel

In the current sports landscape, possessing a MLB team is no longer related to a childhood aspiration or local allegiance. The realm of commerce has turned it into a strategic business decision. Although numerous fans envision their team's owner as a dedicated baseball enthusiast, the truth is that the majority of MLB ownership is motivated by profit, branding, and even real estate ventures, rather than the love for the sport of baseball.

A prime example of this is John Fisher, the owner of the Oakland Athletics. Though Oakland has a long-standing baseball tradition and devoted fans, Fisher is relocating the A’s to Las Vegas, a choice driven by stadium funding agreements and property prospects rather than fan feelings. For years, the A's were among the lowest in Payroll, and rather than investing in a team capable of contending for titles, ownership focused on reducing expenses and planning for a move to Vegas. A similar situation also has happened in Miami, with the team trading away top talent, keeping payroll low, and having the worst fan attendance in the league. All in order to keep operations lean, and putting asset management over the fan experience. 

(Credit: SFGATE)

The economics behind why owners would do this is due to the economics behind it. According to Forbes, the average MLB franchise is worth over $2.3 Billion as of 2024, with the larger and more successful teams like the New York Yankees valued at $7.1 Billion. The strong valuations are created by the reliable revenue streams that teams are given. These revenue streams are first the national TV deals ($1.84 Billion annually), local broadcast contracts, merchandising, and digital rights to stream the games. Even smaller market teams like the Cincinnati Reds, or the Kansas City Royals benefit from the league’s revenue sharing model, which guarantees the owners of clubs a steady income regardless of the teams performance. In shorter terms meaning that you don’t need to win to make money, causing problems for competition in the league. 

This shift in priorities, from winning rings and creating dynasties, to maximise business returmns has changed the identity of MLB ownership. The incentive structure now rewards financial prudence and brand expansion over fan loyalty and on-field success. With guaranteed income from national deals and rising franchise values, owners have little reason to take competitive risks unless it aligns with broader business goals. As long as team valuations continue to climb and profits remain steady, the passion for baseball will increasingly take a backseat to bottom-line thinking. In today’s MLB, owning a team isn’t about winning games—it’s about winning investments.

Works Cited: 

Boysen, Ryan. “’Hospice Phase’: Oakland A’s Fans Move from Anger to Sadness.” SFGATE, 22 Sept. 2023, www.sfgate.com/athletics/article/as‑fans‑coliseum‑grief‑anger‑sadness‑18382735.php.

Teitelbaum, Justin. “Baseball’s Most Valuable MLB Teams 2025 List.” Forbes, 26 Mar. 2025, www.forbes.com/mlb-valuations/list/.