Major League Baseball’s potential expansion to 32 teams could have significant implications for the Los Angeles Dodgers and the league. While no concrete plans are in place, MLB Commissioner Rob Manfred wants to initiate the expansion process before his tenure ends in January 2029.
For the Dodgers, the expansion would likely mean increased competition for talent and, more pointedly, potentially more challenging playoff scenarios. With two new teams entering the league, the talent pool would be spread thinner, though without a salary cap, the impact on deep-pocketed teams like Los Angeles would probably be minimal.
An expanded postseason format could impact the Dodgers and further complicate their path to the World Series. As recent years have shown, regular-season success doesn’t always translate to playoff victories, and the more teams in the playoff mix, the more complex the path to the World Series.
Financial Incentives for Expansion
The primary driver behind MLB’s expansion plans is financial gain. Expansion offers a relatively painless way for the league to increase revenue through various means. New fan bases and increased gate receipts would boost overall league income. Additional local and national media deals would further enhance revenue streams. Expanded postseason opportunities would also contribute to increased profits. Perhaps most importantly, expansion fees provide a significant windfall for existing team owners.
Sports Betting
Sports betting is the elephant in the room. You won’t hear it discussed much, but legal sports betting has significantly impacted Major League Baseball’s (MLB) expansion plans, particularly from a fiscal perspective, creating opportunities and challenges for the league.
MLB has embraced sports betting as a new revenue stream and a way to increase fan engagement. The league has partnered with sportsbook operators like FanDuel, which became MLB’s co-exclusive official sports betting partner in March 2024. This partnership allows FanDuel to use official MLB branding in its marketing campaigns and products, potentially driving more interest in baseball betting.
As sports betting becomes more widespread, MLB is exploring ways to integrate wagering into game broadcasts. Commissioner Rob Manfred has suggested the possibility of a separate digital feed for gamblers that would allow betting directly from the screen while watching games. This could create new opportunities for fan engagement and revenue generation.
However, the growth of sports betting also challenges MLB’s expansion plans. The league may become increasingly reliant on betting revenue, which could complicate future expansion efforts if regulations were to change or if new markets prove less receptive to sports gambling. MLB will need to carefully balance the financial benefits of sports betting partnerships with efforts to maintain the integrity of the sport and prevent gambling-related scandals.
Major sportsbook operators like FanDuel, DraftKings, and BetMGM stand to benefit significantly from MLB’s expansion plans and embrace of sports betting. As MLB expands, these companies will gain access to new markets and a more extensive customer base. Then, an entire secondary market of businesses covers sports betting with odds listings, predictions, or ways to help you find NJ online casinos or sportsbooks. They would also benefit from increased visibility through partnerships with the league and individual teams and potential integration into game broadcasts.
As MLB considers expansion, the league must navigate the complex landscape of sports betting regulations across different states. Currently, 39 states have legal betting markets, but significant potential markets like California and Texas have yet to legalize sports betting. The regulatory environment may influence the league’s expansion plans in potential new markets.
Cost of an Expansion Franchise
While the exact cost of an expansion franchise is yet to be determined, it’s expected to be substantially higher than previous expansion rounds. In 1998, the Tampa Bay Rays and Arizona Diamondbacks each paid $130 million to join MLB. However, given the league’s growth since then, estimates for new expansion fees range from $1 billion to over $2 billion per team.
Potential Expansion Cities
Several cities are vying for consideration as potential MLB expansion locations. The league will likely choose one team from each, either East or West. Current frontrunners include Nashville, Tennessee; Charlotte, North Carolina; Portland, Oregon; Montreal, Canada (former home of the Expos); and Salt Lake City, Utah. Nashville and Salt Lake City have emerged as early favorites, with both cities having groups actively working to bring MLB to their markets.
Timeline for Expansion
While there’s no firm timeline for expansion, it’s unlikely to occur before the early 2030s. MLB needs to address several issues before seriously considering expansion. Resolving the Oakland Athletics’ relocation is a key priority. Stabilizing local media revenues is another crucial factor. Negotiating a new collective bargaining agreement (the current one expires in 2026) is also essential. Manfred hopes to have the expansion process “in place” by the time he leaves office in 2029, suggesting that actual team play might begin in the early to mid-2030s.
Oakland Athletics’ Relocation to Las Vegas
The Oakland Athletics’ planned move to Las Vegas has significant implications for MLB’s expansion plans. In November 2023, MLB owners unanimously approved the A’s relocation to Las Vegas, with the team aiming to begin play there in 2028. This move takes Las Vegas off the table as a potential expansion city and adds urgency to Oakland’s efforts to attract an expansion team.
Rays’ Commitment to St. Petersburg
In contrast to the A’s situation, the Tampa Bay Rays have recently solidified their commitment to remain in the Tampa Bay area. In July 2024, the St. Petersburg City Council approved the Rays’ agreement to build a new $1.3 billion ballpark for a $6.5 billion redevelopment of the Tropicana Field site. The deal includes a stringent non-relocation agreement that legally binds the Rays to St. Petersburg for at least 30 years, with construction set to begin in January 2025 and the new stadium ready for Opening Day in 2028.
As MLB considers expansion, the contrasting situations between the Athletics and Rays highlight the complex factors involved in franchise locations and the league’s overall growth strategy. In the coming years, there will likely be continued discussions and planning as MLB moves towards becoming a 32-team league.
