Orioles Owner Rubenstein Says MLB Beats Private Equity on Profit, Undercutting Salary Cap Push
Updated
Updated · Fox News · Oct 20
Orioles Owner Rubenstein Says MLB Beats Private Equity on Profit, Undercutting Salary Cap Push
1 articles · Updated · Fox News · Oct 20
Summary
David Rubenstein told the Economic Club of Washington that sports teams are "making more money than I'm making in private equity," saying that helped drive his purchase of the Orioles.
That remark cuts against owners' expected push for a salary cap before MLB's collective bargaining agreement expires on Dec. 1, when a lockout is widely anticipated.
The profitability debate comes as MLB cites competitive-balance concerns tied to big spending, yet this postseason sent the Brewers to the NL pennant and could send the low-payroll Guardians or Rays to the World Series.
Revenue-sharing payouts already funnel tens of millions of dollars a year to smaller-market clubs, with some estimates putting the Pirates' take at $60 million to $100 million before local revenues.