Raleigh vs. Charlotte: The economic impact of an MLB team

A new study shows that out of 10 cities that are potential contenders to be the home of a Major League Baseball (MLB) team, Raleigh and Charlotte are strong contenders. The study analyzes and compares the cities based on feasibility and the economic impact an MLB team would have on each city. 

Earlier this week, MLB Commissioner Rob Manfred hinted at an MLB expansion. 

“I think if we expand, it provides us with an opportunity to geographically realign,” Manfred said on the ESPN broadcast of the Little League Classic between the Mariners and Mets, according to reports. “I think we could save a lot of wear and tear on our players in terms of travel. I think our postseason format would be even more appealing for entities like ESPN because you’d be playing out of the East, out of the West and that 10 o’clock where we sometimes get Boston-Anaheim would be two West Coast teams. That 10 o’clock slot that’s a problem for us sometimes becomes a real opportunity for our West Coast audience.”

Manfred indicated that he hopes to have the locations of two new MLB teams picked out by 2029, when he plans to retire. 

 “Major League Baseball believes the strongest two expansion markets remain Salt Lake City, Utah; and Nashville, with no plans to put an expansion franchise back into Oakland,” according to USA Today, sports columnist Bob Nightingale.

Feasibility

The report breaks down each city’s feasibility as a potential contender. Feasibility is influenced by multiple factors, including population size and growth, income levels, media market reach, proximity to existing MLB teams, and — perhaps most critically — the ability to secure a dedicated MLB stadium, based on the report’s analysis. 

Raleigh and Charlotte are North Carolina’s powerhouse cities, commanding national and global attention with rapid growth. Charlotte has risen as the nation’s second-largest financial hub. At the same time, Raleigh thrives as a technology center, supported by the University of North Carolina at Chapel Hill, North Carolina State University, and Duke University. Together, they reflect the state’s growing influence.

Population growth is a significant factor in attracting an MLB team. While overall rankings remain steady through 2050, Raleigh stands out with a projected 45.8% increase — second only to San Antonio — while Charlotte ranks sixth, according to the study. Both cities are expected to outpace Nashville, a key Southern rival.

Income levels are also factors, as higher household earnings boost ticket demand. Among the 10 MLB contender cities, Charlotte and Raleigh place fourth and fifth in average weekly wages, at $1,060 and $1,015, respectively, according to the study.

Media market size adds another layer. For 2024–25, Charlotte ranks third and Raleigh fourth among the 10 contenders, rising nationally to 21st and 22nd, according to the study. Both show upward momentum.

Stadium feasibility remains a challenge. Raleigh has two main prospects: “Downtown South,” just south of downtown with strong interstate access; and an 80-acre entertainment district near the Lenovo Center, though space could be tight. If neither fit, sites along I-40 or NC-70 between Raleigh and Durham might be explored, though the Durham Bulls’ 10,000-seat park is too small. Charlotte lags, with Truist Field’s 10,000 seats and potential renovation costs of up to $1 billion. Past stadium proposals have faced pushback over public funding.

According to the study, a new MLB stadium would cost $1–$2 billion. State and local governments traditionally cover much of the expense, recouping through economic growth, through private or investor-led funding is possible. Ownership models also matter: Most teams are privately held, though the Braves have been publicly traded since 2023.

In a recent column by John Locke Foundation board member John Hood, he said decades of academic research show that the public funding of ballparks, stadiums, and arenas does not bring the promised economic benefits. Hood says state and local governments do not derive sufficient return on investment (ROI) in job creation, financial gains, etc., to justify the significant payout. He says the money spent on advertised products would have been spent on other goods or services in the market. And taxpayers would get a better ROI if the funds were invested in public services such as public safety, education, or infrastructure.

Other factors analyzed for feasibility include schedule, competition, and professional performance. Given that both Raleigh and Charlotte already host professional and collegiate sports teams, an important consideration is whether an MLB schedule would overlap with existing sports calendars — particularly those of the popular ACC programs in the Raleigh-Durham area. Major League Baseball runs from April through September, with playoffs and the World Series potentially extending into October and early November.

Charlotte has demonstrated strong support for professional sports, with the Panthers averaging 70,000 fans per game in their 75,000-seat stadium for three decades (except the COVID-impacted 2020 season), the Hornets drawing 17,000 per game despite a 42% winning record, and Charlotte FC setting the MLS single-game attendance record while remaining among league leaders. Even the Charlotte Knights, a minor league baseball team, have posted impressive attendance, sometimes leading all minor league baseball teams.

The primary scheduling overlap in Charlotte would be between MLB and MLS (Major League Soccer), while in Raleigh, the central conflict would be with college football for only two months — unless a team advanced into the postseason — similar to other candidate cities like Mexico City and Montreal, facing overlaps with professional and college teams. 

Economic ImPACT

This report measures economic impact in both the public and private sectors. It only measures the effect that stays in the selected area and is not countered by reductions elsewhere in the local economy. The economic impact is measured from the construction of the stadium and the annual MLB season. 

Economic projects have three effects: direct, indirect, and induced. The estimated cost of this report’s analysis is $1.75 billion. Direct impact is at the project site. Construction activities include design, materials, and labor. Only activities generated from the project’s host area are included in the calculations. Impact is measured by private spending, employment, payroll, and public revenue. Indirect impact is the economic impact on local suppliers to the project. The induced effect reflects the additional private spending, job creation, and public revenue generated when the project’s extra labor income is spent at local retailers and businesses.

“Annual additional jobs are between 2000 and 2500, with annual labor income of nearly $120 million. Total additional economic output is over $300 million,” according to the study. “Cities in each county will receive over $2 million annually, the county will take in more than $3 million, State tax revenues will be an additional $7 million annually, and the Federal government will collect over $20 million yearly.”

The study says building an MLB stadium in either metro area would generate about 5,500 jobs, over $400 million in payroll, $140–160 million in economic activity, and more than $80 million in public revenues.

The post Raleigh vs. Charlotte: The economic impact of an MLB team first appeared on Carolina Journal.

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