Cubs’ Owner Catches Unwanted Strays After MLB Announces a Record-Setting 33% Revenue Growth in 10 Years

MLB is going like never before! Reportedly their revenue has grown by 33% in the last 10 years, conveying sound financial health for the league. However, it might not also be true that the growth of MLB is portraying the economic development of all the teams. Could it be that the teams are still not financially viable irrespective of the fact that the overall league is growing? Well, that is something the Chicago Cubs owner Tom Ricketts thinks so.

Important to note here is that the average spending of the teams has also risen over the years. This offseason showed the stark disparity between the spending amount of the teams. For the unversed, the Dodgers have spent $771 million this year in trading while the Chicago Cubs spent $163.7 million on the same. Then there are teams like the Nationals, Marlins, and Twins who have spent less than $10 million in the open market. So, it is very evident that the league’s growth is majorly dependent on the spending spree of a few top-tier teams rather than a collective growth of all 29 teams. What did it mean for the small teams then and what would be the future growth scenario for the entire league?

Different financial outlook for the Cubs

The overall growth of MLB is something that looks very promising. For those unaware, MLB has grown both in terms of revenue and audiences in the last 10 years. $12.1 billion was their revenue for 2024, which is a significant increase from $11.6 billion in 2023. That’s a huge $500 million increase in just one year. In terms of attendance, MLB saw 71 million attendance in 2024, which is the highest since 2017. So yes, holistic growth is evident here. But do all the teams benefit from here considering the difference between the top-tier and low-tier teams?

Well, financial outlook and planning are different for different teams at MLB and is evident from the words of the Cubs owner Tom Rickett. On asking about why the Cubs are not on the same signing spree as the Dodgers, he said, “They think somehow we have all these dollars that the Dodgers have or the Mets have or the Yankees have and we just keep it”. The resources possessed by the Dodgers, Yankees, and Mets are something out of reach for most other teams, and for teams like the Chicago Cubs, it’s about surviving every year and ensuring the minimum cost involvement.

The Cubs have been able to scale back their investment this year much below the luxury tax threshold. In a podcast with Foul Territory, former catcher Erik Kratz focused on Rickett’s words and how the low-tier teams are just ensuring their bottom line, while the bigger teams are contending for the title. At the end of the day, the winning team will earn big and hence the cycle is going around a few top-tier teams only. “Ultimately winning teams make money not spending teams win it’s winning teams make money”.

Possible financial sustainability for MLB

Well, it seems that the growth of MLB is unsustainable considering it is centered around a few teams. The Yankees and Dodgers have contributed the maximum revenue and attendance with the Dodgers alone adding 4 million attendees last year. Hence, financial sustainability can be ensured by bringing pay parity among all the teams, and salary capping is the most viable option. As per Rickett, “What happens is we try to break even every year, and that’s about it”. When teams like the Cubs are just looking to invest less and break even in minimum time, winning the title cannot be a goal there.

Much like what the NFL has done, maintaining equal competition between the teams is important and only then the fans from all the teams get attracted when their team will contend for the title. With the salary cap, all the teams will have an equal limit for investment and each of the 29 teams will have equal representation of getting big names to their squad. MLB can grow in the long term only when all the teams collectively contribute and cannot sustain based on a top few teams. 

Amid the revenue growth of MLB, the financial approach of the Chicago Cubs cannot be rejected considering their position and it is only for the MLB to ensure equality among all teams. The league needs to stay competitive to sustain itself in the future.