Major League Baseball is comprised of 30 teams across the American League and National League. There are high revenue markets like New York and Los Angeles as well as smaller markets like Milwaukee and Kansas City. Teams make money through several revenue streams - ticket sales, concessions, merchandise, TV/media deals, sponsorships, etc. The most valuable teams have the advantage of being located in huge markets.
Forbes releases annual valuations of all 30 MLB franchises. Their rankings provide great insight into which teams are the most lucrative in the sport. Franchise value encapsulates all aspects of the business, including ownership equity, debt, current stadium deals/real estate, and future revenue streams. Valuations have risen steadily over the last decade as new stadiums are built, media rights deals grow, and MLB continues to profit.
The average MLB franchise is now worth over $2 billion. The top teams are valued north of $5 billion. No matter the market size, baseball teams have proven to be excellent investment opportunities. There is a lot of money flowing in this sport.
Here's a breakdown of the five most valuable franchises in Major League Baseball:
1. New York Yankees
Value: $7 billion
The New York Yankees are MLB's premier franchise and by far its most valuable. The Yankees play in baseball's biggest market at Yankee Stadium located in the Bronx. They have a wildly passionate fan base and are the most decorated team in baseball history with 27 World Series titles.
Forbes estimates the Yankees generate over $668 million in annual revenue. That allows them to spend big on payroll every year. The Yankees are owned by the Steinbrenner family. George Steinbrenner purchased the team in 1973 for just $10 million. The franchise is now worth $7 billion just 50 years later.
The Yankees signed a long-term media rights deal with the YES Network that funnels millions to the team each year. They continue to invest in the roster by handing out enormous contracts to stars like Aaron Judge. The Yankees are the crown jewel of MLB.
2. Los Angeles Dodgers
Value: $5.2 billion
The Los Angeles Dodgers rank second and are the most valuable National League club. The Dodgers have a huge market to themselves on the West Coast. Los Angeles is filled with celebrities and lots of affluent people.
Led by an ownership group that includes Magic Johnson, the Dodgers have spent big to revitalize the brand. They play in the iconic Dodger Stadium which recently underwent a $100 million renovation. Star players like Mookie Betts and Freddie Freeman now wear Dodger blue.
A record TV rights deal with Spectrum SportsNet LA helps drive revenue each season. With strong ownership, smart management, and a beautiful ballpark, the Dodgers are now one of baseball's premier franchises. Their value should continue rising.
3. New York Mets
Value: $3.55 billion
Sharing the Big Apple with the Yankees, the New York Mets are MLB's third most valuable team. The Mets have an affluent fan base and a top media market to leverage. Mets games are televised on SNY which is majority owned by the franchise.
Billionaire Steve Cohen purchased the Mets in 2020 and immediately started spending. He committed over $350 million in free agency this past offseason alone. The Mets hope to contend for a World Series under Cohen's stewardship.
Playing in New York gives the Mets inherent advantages driving sponsorship and commercial revenue. Citi Field is undergoing renovations that will create new revenue streams. The Mets should remain highly valuable as Cohen aims for a championship.
4. Chicago Cubs
Value: $3.36 billion
The Chicago Cubs have an enormous national fan base and are the kings of Wrigleyville. Wrigley Field remains baseball's biggest attraction, driving tickets sales and filling the iconic ballpark daily during summer.
Even with on-field struggles, fans continue supporting the Cubs in droves. Chicago is a massive sports city that brings great sponsorship opportunities. The Cubs have their own TV network (Marquee Sports) and have invested in Wrigleyville real estate.
Ownership has been willing to spend during contention windows. Star players like Kris Bryant and Javy Baez have come through Chicago over the past decade. The Cubs are a global brand that will always be highly valuable.
5. San Francisco Giants
Value: $3.35 billion
The San Francisco Giants have an underrated profile and high value. Northern California is a large market with many corporations / tech companies. The Giants have built strong partnerships in San Francisco.
Oracle Park is regarded as maybe the most beautiful ballpark in baseball from its location along the pier. Attendance remains high annually as the Giants offer a fantastic fan experience. They've also won three World Series over the last 15 years.
Longtime Giants investor Charles Johnson now owns over 90% of the franchise's equity. He's invested resources into growing the team's footprint in San Francisco. The Giants are now over a $3 billion club with room to still expand value.
Conclusion
The New York Yankees are MLB's most valuable franchise, worth an estimated $7 billion. They sit atop the sport but have strong competition from big market clubs like the Dodgers, Mets, and Cubs. Baseball revenues continue to rise across the board. Even small market teams are seeing franchise values approaching $2 billion. The money will keep flowing as the MLB remains one of America's favorite professional sports leagues.
