The Los Angeles Dodgers have often been perceived as the underdogs when compared to the iconic New York Yankees within the annals of baseball history. With 23 World Series appearances—far behind the Yankees’ 41—the Dodgers have faced challenges, securing victories in only four of their 12 confrontations in the Fall Classic. The Yankees boast 22 Hall of Famers, while the Dodgers, alongside the Giants, hold a commendable 15 inductions.
However, the tides turned for the Dodgers in 2024, as they triumphed over their East Coast rivals by clinching the World Series in just five games and earning their second championship title in five seasons. Not only did they capture the crown on the field, but they also made history off the field, becoming the first major league team to surpass $1 billion in gross revenue.
With the Dodgers reaching this significant financial milestone, they joined an elite group of global sports franchises. The only other teams to achieve revenues of this magnitude are the NFL’s Dallas Cowboys and the famed LaLiga clubs, Real Madrid and Barcelona.
The journey to this billion-dollar mark resulted from strategic developments in management, a lucrative local television deal, and the introduction of a generational talent upon the arrival of Shohei Ohtani at the onset of the 2024 season, which significantly boosted ticket sales and sponsorship opportunities.
When Mark Walter led a consortium to purchase the Dodgers for $2.15 billion in 2012, the franchise was struggling, having missed the playoffs for three consecutive seasons and lacking a World Series appearance since 1988. The Dodgers ranked 11th in MLB attendance in 2011 and hadn’t featured a top-five payroll in a decade prior to the sale.
Walter’s leadership marked a shift from the frugality of the previous ownership, with the team signing an unprecedented $8.35 billion television contract with Spectrum for 25 years in 2013. This financial investment led to a doubling of the Dodgers’ payroll that same year, enabling consistent placement among the top three in MLB spending, with only brief dips in 2019 and 2023. This marked the beginning of an impressive 13-year playoff streak.
Later that year, in October 2014, Walter and Dodgers president Stan Kasten appointed Andrew Friedman from the Tampa Bay Rays to head the team’s baseball operations. Under Friedman’s guidance, the Dodgers not only experienced unparalleled on-field success but also developed the number one farm system in Major League Baseball.
Thanks to their sustained success, the Dodgers have gained substantial leverage regarding ticket pricing and sponsorship opportunities. They consistently lead MLB in attendance figures, aided by Dodger Stadium, the only venue in the league with a capacity exceeding 50,000. Despite this, the organization historically struggled to top the gate revenue rankings, often trailing the Yankees—until now.
In 2024, the Dodgers generated an impressive average of $4.29 million per regular-season home game, according to MLB’s internal gate report. They outpaced the Yankees, who amassed $4.11 million, as well as the Cubs, Red Sox, and Astros. In contrast, teams at the bottom of the revenue spectrum reported earnings as low as $500,000 per game.
With an average ticket price of $87 in 2024—ranking fourth among MLB teams behind the Yankees, Cubs, and Red Sox—the Dodgers adjusted their pricing for 2025 in response to increased demand following their World Series victory, positioning themselves in close competition with the Yankees.
A significant factor driving this demand has been the signing of Shohei Ohtani to a record-breaking 10-year, $700 million deal for the 2024 season. Ohtani has not only brought a surge in ticket sales but also revitalized the Dodgers’ sponsorship landscape. New partnerships with Japanese brands have resulted in an estimated $70 million boost in sponsorship revenue.
Kasten remarked on the impact of Ohtani during a recent podcast, acknowledging the player’s ability to transcend geographical and demographic boundaries. His influence is beneficial not just for the Dodgers but for Major League Baseball as a whole, particularly in Japan. The Dodgers’ series in Tokyo garnered impressive viewership, averaging over 25 million for the first game, showcasing Ohtani’s magnetic appeal.
Currently valued at $7.73 billion, the Dodgers continue to close the financial gap with the Yankees, who are valued at $8.39 billion, positioning them as the 14th most valuable franchise across all sports, amidst an NFL-dominated landscape.
This exceptional revenue achievement has sparked discussions about income inequality within the sport. Critics highlight that such disparities could undermine the competitive balance of baseball. Nevertheless, the Dodgers contribute an estimated $150 million toward the sport’s revenue-sharing framework, emphasizing their role in supporting smaller market teams.
As leading baseball agent Scott Boras assessed in a recent interview, rather than seeking to alter the system that permits significant revenue from teams like the Dodgers, MLB should encourage other franchises to emulate their success.
