Major League Baseball increases private equity ownership limit to 20%

Major League Baseball (MLB) has restructured its ownership rules to allow private equity firms to hold up to 20% stakes in individual franchises. This change aligns MLB with the ownership ceilings of the NBA, NHL, and MLS.

Under the new framework, a private equity investor is prohibited from holding a larger stake than the franchise’s controlling owner. Since MLB rules require a controlling owner to possess at least 15% of a team, the maximum allowable private equity stake would be capped at 15% in instances where the controlling owner holds only the minimum required interest.

Private equity already has a presence within the league. Research indicates that 10 teams, including the Arizona Diamondbacks, Baltimore Orioles, and Cleveland Guardians, have private equity affiliations. An additional eight teams, such as the New York Yankees and Los Angeles Dodgers, are also reported to have private equity connections.