Tuesday, December 17, 2013

Report: MLB tallies record $8 billion in annual revenues

In spite of the flawed perception held nationally that baseball is slowly dying in America, Major League Baseball is actually stronger than ever, as a recent report by Forbes states that the league could very well rake in record revenues this season.

Here is an excerpt from the Forbes report:

It was a very good year for Major League Baseball; as in historic. According to a source speaking on condition of anonymity, 2013 MLB gross revenues will exceed $8 billion for the first time, ever. While exact figures were not revealed, baseball will end 2013 with revenues between $8-$8.5 billion.

For the record, MLB posted revenues slightly above $7.5 billion in 2012. In 1994, the league grossed roughly $1.4 billion ($2.2 billion when factoring for inflation). Since then, MLB has enjoyed tremendous growth across the board, increasing their annual revenues a whopping 264 percent in less than two decades.

Although attendance doesn't exactly correlate with this massive increase in revenues, the rapid escalation of television deals sure does. The league will see their revenues from television double when new broadcast deals with network partners FOX, ESPN, and TBS kick in soon, which will add an additional $788.3 million a year to the league's balance sheet.

All in all, it is expected that MLB could see revenues hovering around $9 billion by the end of 2014, which would once again raise the bar historically for baseball.

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