Baseball Business: How do Major League Baseball teams make money?

Welcome to our "Baseball Business" series! In this collection of articles, we explore how baseball works as a business. We'll look at everything from how teams earn money to how players get paid. This series aims to help young fans understand the money side of America's favorite pastime.

Ticket Sales: Filling the Seats

One of the biggest ways baseball teams make money is by selling tickets. When you go to a game with your family and buy tickets, that money goes to the team. Teams like the New York Yankees or Los Angeles Dodgers can fit over 50,000 fans in their stadiums. Imagine if each person pays about $50 for a ticket - that adds up to $2.5 million for just one game!

Teams charge different prices for different seats. Seats behind home plate cost more than seats in the outfield bleachers. For example, you might pay $20 to sit in the upper deck but $200 to sit right behind the batter.

TV and Media Deals: Baseball on Screen

Have you ever watched a baseball game on TV? Television networks pay baseball teams a lot of money for the right to show their games. These are called "broadcast rights" or "media deals."

For instance, the Los Angeles Dodgers have a TV deal worth about $8 billion over 25 years! That means they earn about $320 million each year just from TV, even if no one comes to the games.

Merchandise: Wearing Your Team Pride

When you buy a baseball cap, jersey, or foam finger with your favorite team's logo, you're helping that team make money. Teams earn a share of all merchandise sales.

Imagine a young fan buying a Mike Trout Angels jersey for $120. Part of that money goes to the Angels team, part goes to Major League Baseball, and part goes to the company that made the jersey.

Food and Drinks: Ballpark Snacks

Hotdogs, popcorn, sodas, and other snacks sold at games are another way teams earn money. When a family of four spends $50 on food during a game, most of that money goes to the team.

Some stadiums have become famous for their special food items. For example, the Seattle Mariners sell sushi, while the Arizona Diamondbacks offer a huge $25 hot dog covered in toppings!

Sponsorships: Ads at the Ballpark

Have you noticed all those company names and logos around the baseball stadium? Companies pay teams to display their names on scoreboards, walls, and other places fans will see them. This is called sponsorship.

For example, a local car dealership might pay $100,000 to have their name on a section of the stadium, or a soda company might pay millions to be the "Official Drink" of the team.

Sharing is Caring: Revenue Sharing

Major League Baseball has a system called "revenue sharing." This means that teams that make a lot of money share some with teams that make less. This helps make sure that smaller-market teams (like the Kansas City Royals) can still compete with big-market teams (like the New York Yankees).

This system shows how important fair business practices are in baseball. Without revenue sharing, some teams might never have enough money to sign good players.

Conclusion

Baseball is both a sport and a business. Teams need to make money to pay players, maintain their stadiums, and provide fans with great experiences. By running their businesses well and following fair practices, baseball teams can continue to bring joy to fans for generations to come!