[Issue] Pro Baseball Attendance Reaches 10 Million, Yet Still in the Red: A 'Systemic Problem'

*This content was translated by AI.

Researchers have analyzed why professional baseball (KBO), which has surpassed 10 million spectators, remains in the red.

In a paper titled "The Paradox Between External Growth and Financial Performance of Korean Professional Baseball Teams in the Era of 10 Million Spectators: A Focus on DuPont Analysis," published recently in the Journal of Korean Sport Science by researchers Kim Jin-se (Korea Sports Promotion Foundation) and Kim Jin-guk (Korea Institute of Sport Science), the realities and solutions for professional baseball were explained.

The study found that, based on DuPont analysis results for KBO teams from 2022 to 2025, the average audience across nine teams increased from 600,000 to 1.19 million over three years, and revenue rose from 52.8 billion won to 76.1 billion won. However, six of the nine teams recorded a net loss for the current period in 2025. The research team comprehensively analyzed profitability, asset utilization efficiency, and financial structure using audit reports and financial statements for each team obtained from the Financial Supervisory Service's electronic disclosure system (DART).

The analysis indicates that even as revenue from tickets, merchandise, and food and beverage increases with higher attendance, fixed cost burdens such as high-value FA contracts and player payroll also grow simultaneously. Consequently, the increase in revenue does not sufficiently translate into actual profit. Ultimately, the challenge of the 10th-million-spectator era is analyzed to be not just "how much to sell," but "how effectively to convert increased revenue into stable profits."

The paper proposed simultaneous improvements in teams' revenue structures, cost structures, and stadium operation structures as a solution. It suggests that player acquisitions and long-term contracts should be managed from the perspective of return on investment (ROI), considering not only competitive performance but also box office appeal, sponsorship effects, and injury risks. On the revenue side, it is necessary to expand per-fan consumption and revenue sources through premium seating, memberships, player IP merchandise, F&B, naming rights, and online sales.

Specifically, it was recommended that regulations and operational methods be improved so that teams using stadiums owned by Local Governments can create long-term revenue by utilizing facilities and spaces. Furthermore, stadiums should be transformed from facilities used only on game days into a "365-day sports business platform" combining performances, shopping, culture, and tourism.

Kim Jin-se (Dr.), the first author of this paper, stated, "Now that we have surpassed 10 million spectators, it is time to transition the popularity of professional baseball into a system that strengthens the sustainability of the sports industry." He added, "Expansion of long-term operating rights for Local Government-owned fields and improvement of related ordinances, attribution of stadium ancillary revenue to teams, efficient management of player costs, and diversification of revenue sources must be achieved together."

Chae Jun, Permanent Chairman of Sports Forum 21, said, "This paper addresses the most important aspect of professional sports. The fact that professional baseball, which is enjoying its prime, remains in the red is because our country's professional sports are still 'insufficiently professional.' Even if professional sports want to engage in unlimited competition for profit, it is often impossible due to systemic constraints. This is also a problem for all domestic professional sports."

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*This content was translated by AI.