MLB teams generate revenue through a combination of ticket sales, broadcast deals, sponsorships, and merchandise.
The team has money to spend. According to Forbes, the average MLB team is now worth $2.4 billion (£1.89 billion).external In 2024, the Yankees are valued at $7.55 billion (£5.95 billion).
The league also has no salary cap. This sets it apart from other U.S. professional leagues (NFL, NBA, NHL), which limit the amount of money each team can spend on wages.
However, MLB operates something called a “competitive balance tax.”externalThis means that clubs that exceed the salary threshold will be taxed on the amount in excess of that amount. For 2024, that threshold was $237 million ($187 million).
With all this talk about multi-million dollar contracts, you might expect baseball players to regularly appear on Forbes magazine’s list of highest-paid athletes. Among the 50 highest paid athletesexternalOhtani and Max Scherzer are the only two.
That’s because the maximum amount in baseball is determined by the length of the contract. In Soto’s case, we know how much he will make over 15 years, but it won’t be the highest amount per year.
For example, Portuguese forward Cristiano Ronaldo is the highest-paid footballer in the world, earning £177 million a year from Saudi Arabia’s Al Nasr.
This is more than double the annual salary of Lionel Messi, who plays for Inter Miami in MLS. His contract is reported to be worth up to £47 million a year.
Soto, on the other hand, is worth £40m a year.
