I think the lowest profits in 2022 was Cleveland at 38 million. Currently the team is valuated at 1.3 billion. Now, DickPole could probably explain this far better than I could, and 3% (38 million out of 1.3 billion) doesn't look like a lot for annual returns on it's own, but when these teams are raking in tens of millions in ancillary income that doesn't get reported on the MLB team's books, that 3% turns to much higher % very quickly.
And Baltimore in 2022? Baltimore had the highest profit margin of any team in 2022. Revenues 262 million, EBITDA of 65 million for a margin of 25%. 1.7 billion valuation.
Other teams had higher EBITDA in terms of actual dollars of course, like say... Boston at 72 million, but with their much higher revenue of over 500 million, their margin was only 14% with a much much higher valuation.
Don't let these small market teams fool you. They're making tens of millions every year on baseball and other streams related to baseball and can absolutely afford to spend more on their product, they just choose not to.