Major League Baseball just saw its teams spend billions of dollars in free agency, and part of the reason why is the record-setting revenue the league generated in 2022.
Forbes reported on Wednesday that MLB pulled in an estimated $10.8 billion, the most the league has ever taken in, eclipsing the $10.7 billion generated in 2019.
The amount did not take into account net revenue (after costs). MLB took significant revenue hits in 2020 and 2021 due to the COVID-19 pandemic, which drove attendance restrictions. The revenue jump for 2022 came after a 99-day lockout which delayed the start of the regular season.
Forbes noted that MLB’s attendance in 2022 was down six percent from 2019, but that television revenue from deals with FOX, ESPN and Turner Sports likely accounted for the uptick in revenue. A new TV deal with all three started in 2022, which is worth $1.76 billion annually and a $250 million raise from the previous deal.
The jump in revenue was likely partially responsible for the incredible amount of spending this offseason. By the end of the Winter Meetings in San Diego in early December, MLB teams had spent $2 billion in player salaries.
The Rangers got in on the action, too, landing the most coveted free-agent pitcher on the market, Jacob deGrom. The Rangers lured him to Texas on a five-year, $185 million deal that was the richest the team has ever given to a pitcher.
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