Minor League Baseball Ownership Structure: An Analysis of the Use of Vertical Integration by Major League Baseball Teams

With the competition level of major league baseball becoming higher every year, it is imperative that teams do everything they can to get an edge over their opponents. This study examines the different ownership structures used by MLB teams, specifically looking at the decision of using vertical integration and why that may provide an MLB team with a competitive advantage. This analysis used data from all MLB and MiLB teams from the years 2010, 2013 and 2016. I have developed a model to better explain the decision making process of choosing to implement an ownership structure using vertical integration. I have also developed two different hypotheses in the theory chapter, one for the MLB and one for the MiLB, which are then analyzed using the results of the regressions in the empirical chapter. Both hypotheses are tested using logistic regressions and use the level of ownership as the dependent variable