2014 will be an historical year for MLB revenue as it is quite possible revenues will hit 9 Billion dollars. That’s Billion with a B folks. Last year 2013 was a record breaking year by MLB breaking 8 Billion dollars. This year will be another huge jump. What is amazing is this is not the economy of the booming mid to late 90’s. But like many forms of entertainment business is booming.
Back in the day when I was growing up teams use to focus on attendance and getting people to the ballpark as a main source of income. Well times have changed. MLB with their national TV contracts with ESPN, FOX and TBS bring in 1.5 Billion combined from those 3 networks with their recent deals. Those revenues in baseball are split evenly among the 30 clubs so that’s 50 Million dollars per club per year. In addition MLB has grown their Digital Rights arm of the business substantial over the last number of years. This brought in 620 Million worth of revenue in 2012. That’s a little over 20 Million per club per year (again these revenues shared equally among the clubs) and I am sure there was an increase in 2013.
Then I get into new local TV deals among the clubs and business is thriving there as well. Some teams like the Mets and Yankees own their own TV networks. Continue reading MLB Ticket Sales Low on the List of Revenue