Major League Baseball (MLB) is the world’s most popular and prestigious professional baseball league, with 29 United States and 1 Canadian team.
However, MLB has been exploring the possibility of expanding its reach to other markets, especially in Latin America, where baseball is a popular sport. One of the potential destinations for MLB expansion is Mexico, a country with rich baseball history and a large fan base.
Why Mexico?
Mexico is an attractive market for MLB expansion for several reasons. First, Mexico has a population of over 120 million people, making it the 10th largest country in the world by population. Mexico also has a strong economy, ranking as the 15th largest in the world by nominal GDP. Moreover, Mexico has a close geographic and cultural proximity to the United States, facilitating travel, trade, and communication.
Mexico has a long and passionate baseball tradition dating back to the late 19th century. Baseball is widely played and followed in Mexico, especially in the northern and southern regions. Mexico has a professional baseball league, the Mexican League (LMB), affiliated with Minor League Baseball (MiLB), with 18 teams nationwide.
The LMB season runs from April to September, with a winter break from October to March. The LMB has produced many notable players who have played in MLB, such as Fernando Valenzuela, Vinny Castilla, Jorge Cantu, and Julio Urias.
Moreover, the country has hosted several MLB games, demonstrating its ability and interest to host major events. The first MLB game in Mexico was played in 1996 when the San Diego Padres faced the New York Mets in Monterrey. Since then, Mexico has hosted 12 more regular-season games, exhibition games, and spring training games.
The most recent MLB game in Mexico was in 2019 when the Arizona Diamondbacks and the Colorado Rockies played a two-game series in Monterrey. The games were well-attended and well-received by both fans and players.
What are the challenges?
The security situation in Mexico presents a significant hurdle, characterized by persistent violence and criminal activities. Mexico currently holds a Level 3 Travel Advisory from the U.S. Department of State, indicating substantial safety and security risks.
These risks encompass a range of threats, such as kidnapping, extortion, robbery, carjacking, homicide, and drug trafficking. Such an environment raises serious concerns for individuals, including players, staff, fans, and media, who might need to travel to or from Mexico for MLB games.
Another complex aspect is the competition posed by various other prevalent sports and entertainment options deeply embedded in Mexican culture. While baseball occupies a unique place, it is not the dominant sport; soccer, boxing, and American football command the majority of attention.
The economic disparity between MLB and the Mexican Baseball League presents an intricate challenge. MLB is one of the world’s wealthiest sports leagues, boasting an average team valuation of USD 2.32 billion and an average player salary of USD 4.9 million. In stark contrast, LMB represents one of Mexico’s more modest sports leagues, with an average team value of USD 10 million and a much lower average player salary.
This stark contrast in economic power introduces complexities in fostering cooperation and coexistence between the two leagues. For instance, LMB teams might face the prospect of losing their top-tier players to MLB teams that can offer superior financial incentives and increased exposure.
What are the opportunities?
Despite the aforementioned challenges, there are several promising opportunities for Major League Baseball (MLB) to expand its presence in Mexico. One significant prospect involves tapping into an already existing and devoted fan base.
This could also be a great opportunity for betting apps to expand to Mexico to engage with an even larger audience.
Many Mexicans have expressed keen interest in attending MLB games in Mexico. Furthermore, they are also interested in watching MLB games through television broadcasts or online platforms. These figures reflect significant demand for MLB content and events in Mexico and offer clear revenue generation and engagement avenues.
Using the existing infrastructure and partnerships established by MLB in Mexico is another noteworthy opportunity. MLB has invested in constructing and refurbishing stadiums, training facilities, and academies across Mexico. Notable examples include the Estadio de Béisbol Monterrey, the Alfredo Harp Helú Stadium, and the MLB Elite Academy.
What are the scenarios?
There are several possible scenarios for how MLB expansion to Mexico could happen. One scenario is that MLB adds two new teams in Mexico, one in Mexico City and one in Monterrey. This scenario would create a balanced league with 32 teams divided into four divisions of eight teams each. The new teams would join the National League (NL), while two existing NL teams would move to the American League (AL) to maintain parity. The new teams would start playing in 2025, after a bidding process and a construction period.
Another scenario is that MLB relocates one existing team to Mexico City. This scenario would involve a team struggling financially or with attendance, such as the Tampa Bay Rays or the Oakland Athletics. The relocated team would join the AL West division, while another AL team would move to the AL East division to maintain balance. The relocated team would start playing in 2024 after a relocation agreement and a stadium renovation.
A third scenario is that MLB plays more regular-season games in Mexico without adding or relocating any teams. This scenario would involve expanding the existing agreement between MLB and LMB, allowing MLB to play up to six regular-season games annually in Mexico until 2021. The expanded agreement would allow MLB to play up to 12 regular-season games annually in Mexico until 2025, with different teams rotating yearly. The games would be played in various cities across Mexico, such as Monterrey, Mexico City, Guadalajara, Hermosillo, and Cancun.
Summary
Major League Baseball’s pursuit of expanding its presence to Mexico is a complex journey marked by opportunities and challenges. The prospect of venturing into Mexico, a nation with a rich baseball tradition, a passionate fan base, and an attractive demographic and economic profile, presents a compelling opportunity for MLB to extend its reach beyond its traditional borders.
