This Cleveland Guardians’ Business Model Seems To Be Working Well

Recently, Cleveland baseball has been a winning Major League Baseball franchise.

The Guardians have made the Major League Baseball playoffs the last two seasons.

The team has been in postseason play seven times since 2016.

The Guardians lost a heartbreaker to the Chicago Cubs in the 2016 World Series, which went seven games.

Even with all their success, fans are disappointed that Guardians ownership has not kept pace with MLB payroll spending.

To this writer, the Dolan ownership group, led now by Paul J. Dolan, has taken a very calculated and deliberate approach in their business model for running the Cleveland baseball franchise.

Larry Dolan, Paul’s father, went from his law practice, to buying the Cleveland Indians for $323M in 2000 from David Jacobs.

Perceived Business Model:

To this long-time observer of Cleveland professional baseball, several consistent factors dictate the operating guidelines of the Guardians. Those five guidelines include:

1-Developing and relying on players drafted, and signed internationally by the Guardians.

For years, Cleveland baseball has relied upon quality scouting evaluations to identify, obtain, and develop outstanding young baseball players.

Cleveland has been especially astute at developing pitchers and middle-infielders.

In fact, Cleveland is known to have one of, if not the best pitching development programs in the game.

Trades are used to obtain controllable players to fill-in a perceived unmet need.

2-Not rushing players to the major leagues

Cleveland is known to be conservative in their approach to player development. They want their players to be well schooled, and obtain sufficient minor league experience to handle the rigors of Major League baseball.

In short, while it might be tempting, they don’t rush their prospects to the big leagues.

The approach also permits them to gain full control of player contracts, without starting their major league service time prematurely.

3-Trading players as they get expensive, or close to free agency

Former Indians general manager, John Hart began a well received practice among MLB front offices. His theory was to buy out the player’s last two arbitration years, and possibly the first year of free agent eligibility on selective, high-value players.

While Cleveland still tries that approach, often a player is unwilling to sign a contract prior to free agency.

It is not unusual for Cleveland to trade the player either two years before, or in the year before he reaches free agency.

The team traded Francisco Lindor when it became apparent he wasn’t going to sign with Cleveland. Recently, the Guardians did not sign Josh Naylor, who was one season away from free agency. They traded him to the Arizona Diamondbacks.

There are others.

Steven Kwan can reach free agency after 2027, and buzz remains that Cleveland would be willing to trade Kwan in the right deal.

Clearly, players like Lindor and Naylor, and perhaps Kwan want to see if they can sign a lengthy contract in free agency, with player-friendly guarantees.

4-Maintaining a player payroll within the owner’s comfort level

Cleveland’s payrolls have been near the bottom of MLB in recent years.

Their 2025 payroll, calculated by MLB, was $100,522,729, or 25th in MLB.

The team payroll is a factor of the Guardians business model.

The team payroll has to be within the comfort level of owner Paul Dolan. He has the final say in the front office budget.

While it is true the Cleveland baseball market is not close in size to those in Los Angeles, Chicago, or New York, it is also true there are numerous revenue streams for every MLB ownership group.

This past year, the Guardians drew 2,051,360 fans to Progressive Field.

In 2024, the team drew 2,056,264 fans.

Those fans bought tickets. They also probably purchased from the concession stands, and possibly bought a souvenir or souvenir(s) while at the game.

They possibly purchased apparel from the team store.

The team receives their share of licensing fees for team merchandise.

The team has lucrative sponsorship and advertising contracts.

The team also receives broadcast rights fees, although not to the extent of the past.

Cleveland also receives revenue sharing money from the league.

All that revenue adds up.

5- Always be competitive and entertaining

Given the expertise of a gifted baseball operations staff, the Guardians are competitive, and entertaining.

Guardians fans are loyal.

Guardians fans know the team will not compete to sign Pete Alonso, or Kyle Schwarber.

Realistically, Guardians fans understand the Cleveland baseball business model.

They just don’t like some of it.