Wake Forest University professor Todd McFall, an expert in economics and sports, discussed the prospects of Major League Baseball (MLB) expansion in North Carolina, focusing on Charlotte and the Raleigh-Durham area. Both regions have been identified as strong candidates for a new MLB franchise due to significant population growth and increased economic activity over the past two decades.
McFall highlighted that both cities have attracted a workforce capable of supporting consistent attendance at games. He noted, “Both Charlotte and Raleigh-Durham are going to be incredibly strong contenders for an expansion team. Both locations are experiencing large population growth and are attracting the kind of labor force that can afford to go to games consistently. There’s also no worry about fan interest; people in North Carolina have been asking about a baseball franchise for years. It just makes sense for baseball to move into this area—the Southeast—to take advantage of the new economic activity that has sprouted up over the last 20 years in both Charlotte and Raleigh. I think we’re on the precipice of getting a team, and that’s just thrilling.”
Comparing the two regions, McFall pointed out Charlotte’s status as a growing financial center, which could appeal to MLB for sponsorship opportunities and luxury box sales. “Charlotte is very rapidly becoming one of the centers of finance in the U.S., which is going to be incredibly attractive to Major League Baseball for finding sponsorships and buyers for luxury boxes—that’s instant revenue,” he said. Raleigh-Durham, meanwhile, is known for its health technology and computing industries, and benefits from local interest from figures like Carolina Hurricanes owner Tom Dundon. “He runs a top-shelf professional franchise and seems ready to lead the way, while I have a harder time figuring out who the interested investor in Charlotte is right now,” McFall added.
When considering expansion, McFall identified three main factors: political support for stadium investment, infrastructure improvements for fan access, and the presence of jobs that provide enough disposable income for people to attend games. He stated, “If I’m trying to figure out where to expand, the top three things I’m going to consider are: First, is there political support for investing in a multi-million dollar project to help mitigate the cost with tax breaks on land and support for stadium construction? Second, will there be infrastructure improvements that will allow fans to conveniently get to the stadium? Third, what kinds of jobs are in these areas, and do they provide the disposable income to allow people to attend the games and enjoy the experience?”
On stadium financing, McFall emphasized rising costs, noting that the price for building a new facility could reach $2 billion due to increased material and labor expenses. “Stadium financing is a tricky question that’s only gotten trickier. Initially, it was a $1 to $2 billion interval, but now, it would be naive and fanciful to think it will only cost a billion dollars because steel, wood, concrete and labor have all gotten more expensive. We should be anticipating a ticket price in the $2 billion range for the construction,” he explained. Public funding from state and local governments is likely to be necessary, he said, though historically these subsidies often exceed the economic benefits generated by a new team.
Regarding stadium location, McFall argued that whether a stadium is built downtown or in a suburban area has little effect on overall municipal economic activity. “The economic fact is that baseball fans who come to the park aren’t going to go bowling or play golf or go to certain restaurants as much as they would have if attending the games weren’t an option. People will substitute away from other leisure spending because their budgets only go so far, and they want to use that money to go see the games,” he said.
Finally, McFall discussed how expansion into the Southeast could benefit MLB players by increasing competition for their services and raising salaries. “If I were a player, I’d be over the moon about this! The reason is simple: now there are two more franchises that are going to bid for my services, which makes it much more likely I’m going to get a raise. More competition in the market for my talent means I’ll come out on the better end financially,” he said.
