Bloomberg Business of Sports

Episode: MLB Network's Harold Reynolds Previews 2025 MLB Season

Date: March 28, 2025
Host(s): Michael Barr, Vanessa Perdomo, Damian Sassauer
Guests: Harold Reynolds (MLB Network), Xavier Gutierrez (Impact X Sports), Geetha Raghanathan and Kevin Near (Bloomberg Intelligence)

Overview

This episode explores the massive financial engine behind professional sports, covering the start of the MLB season and diving deep into the economics shaping everything from player contracts and team valuations to media rights and private equity investment. MLB Network’s Harold Reynolds offers an inside look at the 2025 season storylines. The conversation covers team tactics, player value, fan culture, and the globalization of baseball, especially Japan’s impact. The episode then analyzes March Madness’ business side and emerging trends like the skyrocketing value of women’s sports and sports ticketing. Finally, private equity’s growing role changes in franchise ownership and diversification are discussed with Xavier Gutierrez.

Main Segments & Key Insights

1. MLB 2025 Season Storylines with Harold Reynolds

(03:13 – 14:02)

New Show Format at MLB Network

• Harold Reynolds discusses the move to a 5-7pm slot, shifting from late-night live reactions to more structured, in-depth content on baseball.
  • "This year from 5 to 7, we'll be able to have a lot more scripted stuff... So it's going to be a lot of fun." (03:37)

Dodgers' Incredible Hype & Japan’s Influence

• Reynolds recounts his experience in Tokyo for MLB’s opening.
  • “The fan engagement, Ohtani...just spectacular. The fan engagement, Ohtani...they love baseball.” (04:37)
• On Shohei Ohtani’s cross-cultural star power:
  • “Every time Shohei Ohtani came to the plate...as soon as he got in the batter's box...dead silent, like 50,000 whispers. It was incredible.” (05:46)

Ohtani’s Unique Value & MVP Talk

• Ohtani’s two-way excellence and the uniqueness of this era:
  • "We will never see anybody like Ohtani again. Just recognize it and enjoy it." (06:37)

Teams to Watch in 2025

• Dodgers are loaded; Braves and Phillies are top contenders in the NL.
• The key to success: “It's not how you start, it's who can add when they need it...Those are the things that I would look at who has the cachet that can go trade a player.” (07:55)
• Notably highlights Sandy Alcantara’s comeback with the Marlins as a potential division-changer.

Challenges for Weak Teams: The White Sox Case

• Forecasts a (slightly) improved White Sox, but stresses the new draft lottery and slotted drafts make rebuilds harder:
  • “Now you have a draft lottery...you can't just say I'll wait for this guy and we’ll get him in the fifth round. That doesn't happen anymore.” (09:58)

Player Contracts & Spending Disparities

• The new difficulty in locking up emerging superstars to long-term team-friendly deals:
  • "Now they're Vlad Jr saying 500 is not enough...if you can't lock up guys that you've had in your system for six years before they're a free agent, then how are you going to be able to compete?" (11:26)
• Nevertheless, owners are spending: “Hard to say owners aren't spending when you got over $5 billion in salaries out in baseball.” (11:26)

Team Valuations: Is the Sky the Limit?

• Compared to the NBA and MLS, baseball team valuations are trailing but still rising.
• “I think they can continue to explode because there’s only 30 of them. It’s a rare gym.” (13:40)

2. March Madness & The Business of Live Sports

(15:36 – 27:48)

March Madness: Media Money Machine

• Sports remain linear TV’s most resilient content: about 30% of all viewing, 45% of total ad sales (16:33).
• This year's ad spend: Men's tournament could draw over $1 billion in ads (16:33).
• Rights fees are escalating, moving closer to $1 billion for NCAA (17:32), and the profit margin is narrowing:
  • "Sometimes...it is a loss leader. In this case, we actually think they're able to attract just about enough ad dollars to cover the rights fees." – Geetha Raghanathan (17:32)

Ratings & Storylines

• Men's ratings are at 30-year highs despite “no Cinderella stories” (19:08).
  • "Despite...no dramatic upsets, ratings have actually been really strong...averaging about 9.5 million viewers...highest in about 30 years." – Geetha Raghanathan (19:08)
• Sports betting is a major reason behind viewership growth.

Ticketing Trends

• Ticket prices at record highs across sports due to pent-up live event demand post-pandemic (20:11).
• Evolution from box office to Ticketmaster/StubHub dominance:
  • "Ticketing is just dominated by Ticketmaster...StubHub has been taking a lot of share because they've just been spending so aggressively on marketing." – Kevin Near (21:43)
• Secondary ticket market surges; outside the US, resale is more regulated.

Rising Power of Women’s Sports

• Noted viewership: women's NCAA final last year outdrew men by 4 million, though this year’s is slightly down.
• “Women’s sports side is a huge amount of upside...teams playing against the Indiana Fever are moving games to bigger venues because there’s just so much interest.” — Kevin Near (23:34)

2026 FIFA World Cup & Ticket Speculation

• Early warning: avoid speculative resale sites for FIFA Cup; all tickets will be sold directly via FIFA (24:47).

Effects of Mega-Tours (Taylor Swift, Beyoncé)

• Massive sales effects from events like the Taylor Swift “Eras” tour, but generally vendors diversify so mega-stars never constitute more than 1% of revenue on the primary side (26:16).

Merchandise Flywheel

• Strong merchandise sales are feeding off rising ratings and attendance; Disney/toy companies see sport-driven demand (26:59).

3. Private Equity’s Growing Influence in Sports

with Xavier Gutierrez
(28:56 – 40:41)

The Arizona Coyotes Move and Real Estate Dynamics

• Sports franchise value ties strongly to real estate and facilities. Relocation or success hinges on suitable infrastructure:
  • “It stops and starts with a facility...For us, it was quite challenging...it really, really undermined the attendance for many, many years.” (31:04)

Private Equity Expands Its Sports Role

• Gutierrez on the future investment path:
  • Core assets (teams/leagues/universities) have vast untapped potential beyond games: media, facilities, consumer products, wellness, tech, and especially real estate (33:27).
  • "There’s the team and then there’s the enterprise...That enterprise entails their massive real estate project that surrounds the stadium." (35:38)
• Private equity's real prize is investing in ‘the enterprise,’ not just the franchise.

Team Valuations and the New Investment Model

• Owners don’t have to “wait to sell” for a payday: by selling minority shares, they can unlock big value as teams hit multi-billion valuations (36:52).
• "How does an owner make money? When he or she sells the team? Now with private equity they can make some coin because...maybe [they] bought a team for $34 and a six pack and now this team is like in the billions." – Michael Barr (36:52)

Why Sports Franchise Values Can Keep Rising

• Untapped international markets and adjacent business lines mean “we’re barely in the first inning” of valuations (38:00).

Diversity, Equity, and Inclusion (DEI) as a Business Imperative

• Gutierrez: targeting “young, female, diverse, tech savvy, and purpose-driven” growth cohorts is key, not political.
  • “This is not a feel good thing, this is a business imperative...They're absolutely recognizing their market and they're trying to be creative and innovative.” (39:38)

Notable Quotes & Memorable Moments

On Ohtani’s Unique Status

"We will never see anybody like Ohtani again. Just recognize it and enjoy it."
— Harold Reynolds (06:37)

On Franchise Value & Scarcity

"I think they can continue to explode because there's only 30 of them. It's a rare gym."
— Harold Reynolds (13:40)

On the Real Challenge in Player Retention

"If you can't lock up guys that you've had in your system for six years before they're a free agent, then how are you going to be able to compete?"
— Harold Reynolds (11:26)

On Private Equity’s Opportunity

"There’s the team and then there’s the enterprise...what are these other components that we can go and take advantage of? We’re barely at the first inning."
— Xavier Gutierrez (35:38)

On DEI and Sports

"This is not a feel good thing. This is a business imperative...They're absolutely recognizing their market."
— Xavier Gutierrez (39:38)

Timestamps to Key Segments

• MLB 2025 Preview & Dodgers Mania: 03:13–07:55
• The Ohtani Phenomenon: 04:37–06:37
• Contract Dynamics & Parity Challenges: 09:36–12:56
• Team Valuations: 12:58–14:02
• March Madness Media Economics: 15:36–19:49
• Ticketing Evolution & StubHub: 20:11–22:32
• Women’s Sports & Rising Demand: 23:34–24:18
• FIFA World Cup Ticket Issues: 24:47–25:37
• Private Equity’s Move into Sports: 28:56–35:38
• Diversity & Sports Business Growth: 38:33–40:41

Wrap-up

This episode blends insightful front-office and economic analysis with first-hand narrative, from the energy surrounding MLB’s global expansion to the macro-forces shaping franchise values, media rights, and fan experience. It’s a compelling listen for business-minded sports fans eager to understand the modern forces—both financial and cultural—that are rapidly reshaping the industry.