@kagami
private equity has entered the chat
- 18/30 mlb franchises have at least one private equity group with a minority stake
- a salary cap would move player costs from a variable cost to a fixed one, providing cost certainty and likely further growth in franchise valuations
- mlb franchise valuations currently trade around 6-7x revenue multiple while salary capped leagues trade around 10-11x
ownership + the mlb commissioner are marketing this as a fan driven, competitive balance solution. it’s really just a business move to cap player earnings and increase upside for owners
there’s a lot more to unpack here, and ill drop some more thoughts/data later
https://x.com/jesserogersespn/status/2060069780141297746?s=46&t=dGdml54Bn5gAjlxSoZTivg