Article on Yankee Payroll

[Principessa21]

http://sports.aol.com/mlb/story/_a/a-300-million-juggernaut/20080403024909990001

Thought it was an interesting article, especially the part about how the Yankees will be exempt from revenue sharing because of they're paying for new stadium. I was also wondering what people thought this might mean for smaller marker teams.

[zurch1818]

Interesting read. I can't image a Yankee team with CC and Texeria. That payroll is going to be ridiculous!

[kramnoj]

The article doesn't say that the Yankees are exempt from paying into revenue sharing. It says they are exempt from 40% of what their obligation would have been.

 

One other thing to consider is that the Yankees have probably been losing money for the past several years. That's ok for them, because they consider it an investment in the franchise, in their new stadium, in YES. But it could also suggest that they aren't neccessarily going to increase their payroll by 50%.

[GenoSeligPrieb]

"Interesting read. I can't image a Yankee team with CC and Texeria."

 

Bring ON, Texeira! I hope they sign him, because then Prince may not be a Yankee after all. OK, let's not kid ourselves, Boras could still guide him to Boston, sending Youkilis to 3B and Lowell elsewhere, but at least that's 1 less Boras-favored team in the bidding. And Cleveland CAN and will spend to keep CC. At least I hope so...

[endaround]

The Yankees get like $20 million a month in YES rights fees alone.

[mothershipconnection]

I'm with ya Geno, it'd be nice if the top 5 spenders in the league all had great 1B's signed through 2013. If the Yankees sign Teixeira and Boston gets Howard, maybe the chance of Prince staying skyrockets to 2%.

[kramnoj]

The Yankees get like $20 million a month in YES rights fees alone.

 

You're saying that YES pays the Yankees $120 million per year? I haven't seen that before. Remember where you've seen that?

[TooLiveBrew]

The Yanks make an absurd amount of money from their TV network. It's insane.

 

And Cleveland CAN and will spend to keep CC. At least I hope so...

 

Just like they spent to keep Manny Ramirez! Sure, they could cripple their payroll capacity on one huge contract & have nothing else to spend like Texas did with Rodriguez, but CLE's a smarter organization than that.

[endaround]

The Yankees own YES. And it cost $1 a month to have on cable. So basically everyone in the New York viewing area and beyond pays $12 a year to the Yankees. It might no quite be $20 million month, but there are 20 million people in New York, 8.5 million people in New Jersey, Connecticut has 3.5 million and Delaware .75 million.

[kramnoj]

Even if you were able to figure out how much YES takes in, you can't just take that and put that as rights fees to the Yankees. That's like looking at a team's revenue and subtracting player payroll and thinking you know what their profit is. It takes money to run YES, just as it takes money to run a team. Also, I'm not sure that the Yankees own 100% of YES.

[endaround]

They also have Ad revenue. And right teh Yankees and YES aren't the same thing, but the owners are.

[kramnoj]

They also have Ad revenue. And right teh Yankees and YES aren't the same thing, but the owners are.

 

This isn't 100% accurate. Goldman Sachs owned about 1/3 of the network when it launched. It still owns a portion of the network, although it is currently up for sale.