Private Equity and Major League Baseball (MLB)

Can private equity have stakes in Major League Baseball (MLB)? Expert Liam Kirk discusses the relatively new partnership between PE and MLB.

Private Equity certainly has a place in American sports franchises.  But that wasn’t always commonplace.  It wasn’t until 2006 when Private Equity made its way into sports ownership, with the acquisition of French soccer team, Paris Saint-Germain.  This transaction paved the way for major activity of private equity in sports.  Today, there are vent PE portfolios strictly maintaining sports assets.  But what about Major League Baseball (MLB)?  Can Private Equity own a baseball team?  Liam Kirk explains: yes and no.  It’s a complicated process.

Private Equity funds cannot directly own an MLB team.  However, PE can purchase stakes in baseball clubs overall.  This wasn’t possible at all until 2019, when the MLB opened its ownership to institutional investors.  Previously, corporate ownership was the main collective; although, the MLB has moved away from this concept altogether.  In short, Private Equity funds can be utilized to maintain stakes in MLB teams, but cannot purchase an entire franchise outright.  However, with how quickly everything is changing and developing, Wealth Management and PE Expert Liam Kirk foresees major expansion in this avenue in the future.