How MLB Foundations Manage Their Money — And Some Questions
Of the 18 MLB foundations with assets over $5M, 10 hold investments in securities. The numbers tell an uneven story.
I've been working through all 30 MLB team charitable foundations' 2024 tax filings. One thing that caught my attention early on: how foundations with large asset bases manage their investments — or in some cases, don't.
The Landscape
18 foundations cleared the $5M asset threshold. Of those, 10 report holding investments in publicly traded or other securities — not including cash-like interest-bearing instruments. That leaves eight foundations sitting on meaningful asset bases without a clear investment strategy showing up in their filings.
The Numbers
At the top end, the Texas Rangers and Boston Red Sox both held around $20M in investments at the end of 2024. The Rangers generated $898K in investment income on roughly $20M in holdings. The Red Sox generated $514K on $19M — a notably lower yield on a comparable base.
The Houston Astros showed the most interesting trajectory. They started 2024 with $10.7M, ended the year at $16.9M, and generated $1.6M in investment income — an 11.5% return. That's a well-managed portfolio by any measure.
On the other end of the spectrum: the Milwaukee Brewers held $6.9M in assets and generated $19K in investment income. The Cincinnati Reds held $7M and generated $56K. Both of those yields are well below current money market rates, which raises real questions about how those assets are being managed — and whether the boards are paying attention.
What I Don't Know Yet
I need to talk with financial management professionals and do more research to understand what's driving these differences. There are legitimate reasons a foundation might hold assets conservatively — capital preservation, pending large grants, restricted funds — but there are also less legitimate ones. I'm not in a position to draw conclusions yet. If you know anyone with expertise in nonprofit investment management, I'd welcome a connection.
Further Reading
I've also started diving into the academic literature on professional team foundations. Three pieces worth knowing about:
"CSR and the Bottom Line: Analyzing the Link Between CSR and Financial Performance for Professional Teams" — Journal of Sport Management. The spoiler: there's no link.
"An Investigation into Professional Athlete Philanthropy: Why Charity Is Part of the Game."
"Impactful Corporate Social Responsibility in Major League Baseball."
More to come as I work through the data.