I think that what you are saying is essentially correct. I would note that the owners of an LLC pay taxes on the income of the LLC whether or not the income is distributed. Usually, the owners take distributions that will at least cover the taxes on the imputed income for each calendar year. The owners can take more if they wish or they can leave the balance in the LLC to make an investment in the business. If the LLC needed extra money, then the Pohlads could either loan money to the LLC or make a capital contribution. But I think that you are correct that the money generally flows only in one direction. I also think that you are correct that the owners are being asked to make bets that they hope will increase revenues. However, because the LLC is a pass through entity as described above (the owners pay taxes on the net income whether or not it is distributed by the LLC), I do not think that it is accurate to say that they would not be risking their personal money. Any extra money paid to players reduces the amount that the LLC can distribute to the Pohlads. On a more positive note, player salaries are deductible for income tax purposes, which has the effect of making the IRS a partner in all player decisions. If a $10 million player increases revenues by $20 million, then IRS gets its 35% tax on the extra net revenue. But if the Twins sign a $3 million pitcher who actually reduces revenues (cough Marquis cough), then the IRS loses, because there are less net revenues to tax. Baseball is just another business, and the Pohlads are classical capitalists. They seek to maximize their economic returns. And they have had success with their business model and seem unlikely to change it. I would rather have an owner who has a burning desire to win a World Series and who does not mind taking a risk of losing a lot of money on a very risky contract (cough Prince Fielder). But it seems to me that there are a lot of other owners who are even more conservative.