A Major League Baseball logo at Angel Stadium in Anaheim, California, on May 22, 2022.Ronald Martinez | Getty ImagesMajor League Baseball is increasingly drawing private equity investors as the league faces major shifts in player salaries and media rights.Private equity has been gravitating toward professional sports, which sports-acquisitive firm Arctos Partners called “remarkably resilient assets” during times of economic uncertainty in a research note this week. MLB in particular is poised to attract new stakeholders with big changes on the horizon.A potential MLB lockout is looming if the league puts forth a salary cap proposal during collective bargaining negotiations in late 2026. MLB is also navigating a dramatically changing media landscape. The result could be major changes to league finances — and renewed interest from investors.”There hasn’t been a massive private equity gold rush to invest in MLB,” said Neil Barlow, private equity partner at Clifford Chance with a focus on sports and entertainment. “MLB needs to get its house in order for the league to become even more competitive for investment. Institutional investors aren’t going to commit and risk their capital when all it means is it’s helping to fund an arms race of talent.”MLB does not have a salary cap for its players — unlike the National Football League, National Basketball Association and National Hockey League — which has led to some of the biggest contracts in sports and major pay disparities. Team owners and the league’s front office are contemplating a new economic structure, CNBC previously reported. Meanwhile, the league is also recalibrating its media rights strategy as regional sports networks continue to suffer, and ahead of the expiration of national deals in 2028.These factors present risk, but also a lot of opportunity, said Michelle McKenna, a senior advisor in Evercore’s strategic advisory practice, who has a focus on technology, entertainment and sports. In particular, the luxury taxes associated with teams overspending on players present the biggest risk, McKenna and Barlow both said.Get CNBC Sport directly to your inboxThe …
