MLB Sets New Earnings Record Over $10.8 Billion in 2022

Major League Baseball hits a financially home run in 2022 and sets a new revenue record.

After two years of revenue being adversely affected by the pandemic, the baseball business has bounced back from the pandemic faster than the ball from Fenway Park’s Green Monster.

MLB made $10.8 billion to $10.9 billion in revenue before expenses. This is a new record confirmed by the league. The increase tops his $10.7 billion all-time high set in 2019.

At the time of publication, the more significant metric to show available earnings after deducting costs, net earnings, was not available. Total earnings figures were provided by sources who spoke on condition of anonymity due to the confidentiality of financial information within the non-public MLB.

The numbers are significant as they show that MLB has emerged from the pandemic sooner than expected and that the league’s business units are working to expand existing and new revenue streams. to a 99-day lockout by the owner as part of a labor dispute with players over a new collective bargaining agreement.

After Game 3 of the 2022 World Series was rained out, Commissioner Rob Manfred told the media in which he said the league’s total revenue would be just under $11 billion. In the final numbers, Manfred’s comments proved true.

The league’s ability to grow revenue two years after the pandemic began is partly due to the timing of domestic media rights ending in 2021, opening the door for renewals from three broadcast partners .

The 2022 season was the first year of renewal of national media rights for FOX, TBS and ESPN. All in all, this trio of him makes up $1.76 billion a year, a jump of about $250 million a season from his previous deal.

Revenue from ESPN decreased by $150 million a year due to the new deal, but the league was able to close the gap through the new streaming deal. MLB has signed a deal with Apple in addition to national television media rights.AAPL
Streaming NBC to $115 million a year.

While media rights continue to be the largest segment of MLB revenue, sponsorship deals have played a key role in the financial health of Major League Baseball in 2022. He’s up 5.6% since 2021, when he began playing the season in ballparks where the league has limited capacity due to the impact of the pandemic. The largest business sectors affiliated with the league include beer, insurance, technology, automotive, telecommunications, apparel, betting/lottery/gaming, non-alcoholic beverages, mortgages and securities, and wines and spirits.

Gross revenue growth is impressive as game attendance continues to decline. Despite a 42.3% increase in attendance compared to 2021, when most ballparks were at 20% or less capacity at the start of the season, the 2022 regular season will be the last pre-pandemic season in 2019. decreased by nearly 6% compared to Excluding 2020, Major League Baseball saw attendance declines for the ninth straight season. Since the last increase (+1.97% from 2011 to 2012), league attendance has fallen -14%.

Gross revenue is a barometer of how much money is flowing into the league, but given its relationship to MLB player salaries, it is an invalid measure. Expenses are not considered.

Although data for 2019-2022 were not available, financial information for 2006-2018 provided by MLB and verified by the MLBPA shows player salaries at the MLB, minor league and amateur levels. Above industry earnings and these salaries for industry earnings in a given year.