Why do MLB teams have to purchase a player's contract from the minor leagues?

Major League Baseball teams are required to purchase the contract of a player in their minor league system because the developmental leagues are all individual organizations. This means that they all need to make a profit just as much as the major league team. Although they make a profit by being aligned with the major league franchise, they also need to show a profit at the end of their seasons to ensure that they can operate in their locations.

Therefore, these players being purchased are typically their best players and fan favorites, so it is essential that the minor league teams are compensated for the potential impact that could have on their win loss record and any merchandise sold from the player’s jersey or likeness. For example, if the Boston Red Sox want a top prospect from their Triple A affiliate, they would purchase the contract to ensure that the franchise is able to potentially sign a replacement or make up for the loss in ticket sales.

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