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The MLB Lockout Now Runs on Private Equity

Writing in his recent guest column, Chris Koras detailed how institutional financing and private equity have reshaped Major League Baseball labor dynamics ahead of the upcoming collective bargaining expiration. Reflecting on his past representation of Rafael Devers, Koras noted that the Boston Red Sox eventually capitulated on a record-breaking $331 million contract only because the player could withstand the financial fallout while ownership could not.

However, that individual leverage has been heavily diluted across the entire league since the sport permitted outside capital in 2019. Arctos Partners, Sixth Street, and Sportsology now hold minority positions across eighteen different franchises, while Ares Management and Apollo Sports Capital have extended substantial debt facilities to clubs like the San Diego Padres and the New York Yankees.

Supported by these standing credit lines and institutional backing, modern owners can treat potential work stoppages and frozen operating cash flows as manageable discounts rather than existential threats.

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