Private equity interest grows in MLB due to financial challenges and potential lockout

From CNBC: 2025-04-11 07:00:00

Major League Baseball is attracting private equity investors due to shifts in player salaries and media rights. A potential lockout looms if a salary cap proposal is introduced in late 2026. MLB is considering new economic structures amid changing media landscapes and expiring deals in 2028. Private equity firms can own up to 15% of MLB teams.

MLB’s lack of a salary cap has led to major pay disparities and overspending on players. The league is recalibrating its media rights strategy as regional networks suffer. Private equity investments could help MLB transition during this period of decline in local media revenues. MLB became the first league to open its gates to private equity in 2019.

Private equity investments in MLB focus on stadium improvements and digital enhancements. This allows for more payroll spending and strategic advice, appealing to a younger audience. Eighteen of MLB’s 30 teams have connections to private equity, with firms like Sixth Street Partners investing in teams. Private equity’s capital and influence offer long-term strategic partnerships in addition to financial support.



Read more at CNBC: MLB could see private equity interest as uncertainties lie ahead