Major League Baseball (MLB) is feeling confident and looking forward to a year of profit and growth.
- Today, March 30, is opening day for MLB, and the first pitch of the year will come this afternoon as 30 teams open the 2023 season.
- Despite attendance dropping consecutively over the past nine seasons, MLB earned $10.8 billion in revenue last year, and team valuations are skyrocketing to an average of $2.3 billion, The Hustle reports.
- The MLB feels confident, as reflected by teams like the Houston Astros signing $3.79 billion in player contracts.
- Teams are also seeking new revenue opportunities through streaming and selling advertising space on uniforms worth up to $17 million annually.
Why It’s Important
In the post-pandemic world, sports continue to be highly desired and profitable by people eager to leave the house. Sports betting is increasing, soccer is becoming more popular, and every major sports league in the U.S. is seeing team valuations increase. The National Football League alone saw $19 billion in revenue last year.
As we previously reported, sports teams were once considered unpredictable investments, but valuations have risen as sports teams have become one of the most attractive investment assets.
There are reasons for the MLB to be worried. As Hustle notes, Diamond Sports Group recently filed for bankruptcy, suggesting a decline in regional sports broadcasting that could threaten 20% of the MLB’s revenue. However, the rise in streaming does offer hope for the league, as ESPN works to edge into regional sports broadcasting.
With the average cost of attending, parking, and buying concessions to a baseball game exceeding $250 on average, streaming may be a more comfortable option for fans, as Axios notes.