MLB is floating the idea that the league should expand teams. It is currently dealing with an odd 30 team, 2 league set-up. The idea is to add at least two teams to balance out the leagues.
However, that may not be a great idea. It dilutes the talent pool. It weakens the overall product.
But for owners, the division of $2 billion or so as entry fees is incentive enough to open the club to new members.
The potential new franchise cities include Montreal, which had the Expos but could not support the team; Mexico City, because all sports commissioners want their brands to be international; Vancouver, because it is foreign but too close to Seattle's market; Las Vegas, which wants any pro team but still has the gambling stigma; Austin Texas, because it is hip; Charlotte, but that may not be politically correct; Nashville, because it is central; or New Orleans, because it is NOLA.
If the MLB wants to even things out, it could always contract two teams. As it stands, the high revenue, big market clubs are subsidizing the small market teams. If a team cannot draw enough local support to survive on its own (like Tampa Bay or San Diego), then fold those teams into the remaining 28. The player's union would object since it would be losing 80 pro contracts.
But MLB has to start to realize that new public stadium financing is an impossible sell. Municipalities are bankrupt. Sports economists have been saying for decades that city financed sports facilities are dead money deals and do nothing for local economic development. Long term bond debt cripple city budgets and negatively impact other critical areas such as school funding.
The are no known billionaires crazy enough to buy a new franchise and build a new stadium with their own money. The political climate in the US is anti-government, anti-crony capitalism, anti-establishment. Public financing for private sports franchises is the last thing voters want to happen with their tax dollars.
Also in the head wind is the fact that the billion dollar cable team network deals have evaporated. The Yankees network is a dinosaur. The Dodgers network is a financial disaster for Time-Warner. Cable operators are balking at paying premium sports fees. And viewers are abandoning the cable box for streaming services which do not pay content providers as well as old network programming deals. Baseball may be at its peak revenue, but the trend is a steep drop-off.
Baseball owners are first and foremost businessmen. If they can see the massive changes that will come to the sport, there is no reason to rush into an expansion franchise. Just wait until the baseball economy tanks and pick up an existing weak franchise on the cheap.
