MLB ups private equity ownership limit to 20% per franchise
Major League Baseball (MLB) has revised its ownership framework to allow private equity firms to hold stakes of up to 20% in individual franchises, according to a report by Front Office Sports.
Major League Baseball (MLB) has recently adjusted its ownership policies to permit private equity firms to possess up to 20% of individual franchises, as reported by Front Office Sports. This modification, implemented during the summer, aligns MLB's private equity ownership limit with those of the NBA, NHL, and MLS, which all permit corporations to own up to 20% of a team.
In contrast, the NFL has a stricter limit of 10%, having welcomed private equity investments into its franchises the previous year. However, under MLB's revised regulations, a private equity investor is prohibited from holding more than the controlling owner's share. For an MLB franchise, this means that if the controlling owner holds a minimum of 15%, the maximum permissible stake for a private equity firm would be 15%.
MLB has not officially announced these rule changes. Private equity firms have already established a footprint in several MLB franchises. According to research from PitchBook cited in the report, 10 teams have affiliations with private equity, including the Arizona Diamondbacks, Baltimore Orioles, Cleveland Guardians, Milwaukee Brewers, Seattle Mariners, St. Louis Cardinals, and Athletics.
Additionally, eight teams are reported to have connections with private equity, with the San Francisco Giants, New York Yankees, Chicago Cubs, and Los Angeles Dodgers among them.
Written by urgent.news from Private Equity Wire's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
