Why did Negro league teams struggle financially during the 1920s?

During the 1920s, Negro league teams faced significant financial instability due to several structural and operational challenges:

• Lack of Stadium Ownership: Most teams did not own their own ballparks. They were forced to operate as tenants of major or minor league clubs, meaning they could only use the facilities when the primary owners were playing out of town and had to vacate immediately upon their return.1
• Scheduling Difficulties: Because teams lacked exclusive stadium contracts, organizing a consistent schedule was difficult. Furthermore, teams would often cancel scheduled league games if a nonleague opponent offered a more lucrative payday.1
• Operational Inconsistencies: The quality of play varied widely between teams, leading to a situation where a few dominant clubs earned significantly more revenue than their weaker counterparts. Additionally, the quality of officiating was often erratic because umpires were hired by the home team rather than the league.1

These factors contributed to a fragile economic environment, leaving many early leagues unable to sustain long-term operations.1