Major League Baseball has a congressionally granted antitrust exemption. It need not adhere to the same regulatory strictures as ordinary businesses. Baseball ownership has thus formed a cartel that would be illegal in industries with less popular-political clout.
Anyone is free to start their own competing baseball league. However, they would have to compete against MLBs congressionally approved cartel. So we are not talking about a free and open market here.
In a competitive, open market, a league with 30 teams could probably support six or seven teams in the greater New York area and five or six in the Los Angeles area. Two in each metro region is not competitive.
Finally, compare how MLB has done against the NFL since the NFL instituted revenue sharing about 30 years ago. Baseball was the most popular sport in the U.S. then, but now its third. Football was second, now its first. Hate to say it, but revenue sharing has worked well for the NFL.
Football and basketball were NEVER major sports (to listen to/watch) until BETTING and T.V. pushed them into the limelight. Revenue sharing is a lousy policy and does NOT explain anything at all; least of which what you're attempting to.
When I spoke about a " free market ", in regards to baseball, I was talking about the aility of a team to purchase FREE AGENTS/ build up a team outside of the farm system, and the class warfare enthusiasts, here, who, rather than talk about the game/series, would far rather whinge about George's ability to " buy " players...which IS a sorry excuse, considering how many of the Yankees' est, c ame up from the farm team. :-)