Graduation Year

2026

Document Type

Campus Only Senior Thesis

Degree Name

Bachelor of Arts

Department

Science and Management

Reader 1

Patrick Van Horn

Reader 2

Michael Spezio

Abstract

2019 marked the year of financial change across Major League Baseball (MLB); a rule alteration was passed allowing institutional investments to have minority stakes across teams in the MLB. With new investments, teams now have access to more capital, and investors have access to returns in a fairly new market. However, the ownership of multiple teams by one firm runs the risk of lessening the belongingness that fans feel, and this may impact marketing strategy. This study aims to understand the impact that private equity has on the finances of eight private equity-backed teams in the MLB, while also looking to understand the impact on marketing aspects within these teams. Using both qualitative and quantitative data, this study compares the before and after of privately backed teams across metrics such as valuation, revenue, home attendance, and so on, while using wins and a dummy variable (yes or no) to reduce bias. After review, there is no statistically significant influence of private equity on these teams; winning games has more influence. As for marketing, private equity does grant greater liquidity, but it does not, by itself, change fan demand or marketing outcomes. It would likely take many more years to see a change in these measures. However, these findings offer insights for team owners and investors as more leagues begin to welcome private equity investment into their ownership structures.

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This thesis is restricted to the Claremont Colleges current faculty, students, and staff.

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