Mull that number. Three hundred, forty four million, seven hundred thousand dollars and no cents. For starters, it's not some Ouija board estimate from Bleacher Report. It's a legal notation, calculated and filed by Hal Steinbrenner's bean-counters, who are presumably every bit as skilled in hiding money as the reptilian launderers of Silicon Valley and Trump Tower.
Nearly $350 million... in ticket sales alone.
Chew on that. The number doesn't include income from $30 t-shirts, $15 hot dogs, $10 beers, $12 parking spaces, the untold millions from W.B. Mason and Geico TV ads, all those in-game blurbs that John and Suzyn must read (and God help them with the new ticking time clock) plus whatever rivers of income that can be squeezed from the category known as Miscellaneous. (Who will sell "the official pot of the Yankees?")
The upshot? All those horrible luxury taxes, those unholy payments, which ruin poor Hal's life every day, that cause him so much grief? Well, he shoulda beaten Brendan Frasier for Best Actor.
If Hal's dreaded Yankee payroll, in all its bloated magnitude, reaches $270 million, it's still $50 million shy of what the team rakes in on FUCKING TICKET SALES ALONE.
Now, let's note that the Steinbrenner family owns about half of YES. At this point, the numbers become meaningless. What's "infinity plus one?" They transcend our Neanderthal capabilities of comprehension. Who wants to debate an Excel spreadsheet when the matter at hand is Willie Calhoun?
That said, never kid yourselves when the team pulls out its pockets and rattles the cup. The incomes of Aaron Judge, Gerrit Cole, Carlos Rodon, et al, are dwarfed by an avalanche of money in which every owner wallows, as they squawk about the excessive costs of pitching, pitching, pitching...
I should note that some of that ticket income was ghost sales: It included $73 million in tickets sold for the entire Yankee postseason. As you may recall, the team did not play an entire Yankee postseason. It sold tickets for 11 home games, but thanks to Houston and Ryan McBroom, the Yankees hosted only five. Thus, they must give back about, what?, um, $35 million? Tough times.
It's tiring, having to remind ourselves, now and then, of what a giant bullshit-grinding machine that MLB has become. They own us, due to heartstrings stemming from our childhoods, bonds we can never break. They control our emotions, and they play us like fiddles. When Brian Cashman trades for - say - a Harrison Bader, part of his rationale always stems from the player's "team-friendly" contract. The Yankees are always obsessed with control of their payroll, but they are merely playing a parlor game.
Hal keeps payroll low because - well - it's more challenging! It's more fun! If it turns out that - say - Frankie Montas is damaged goods, maybe that's why his former team traded him, eh? Perhaps it wasn't Cashman's genius in coaxing a great pitcher from dumbass Oakland. Maybe the A's simply saw it as time to shed the hot potato.
For all their egotistical overspending, owners like the Mets' Steve Cohen and that private equities guy in San Diego - grandson of Walter O'Malley, I should note - they cannot lose, no matter what.
If every Yankee was Aaron Hicks, the team would still make money.
Manny Machado and Bryce Harper remain living monuments to Hal's fundamental cheapness. They came to New York, knocking on the door. The Yankees hid from them, even though they couldn't lose. Never forget that. Now, about Willie Calhoun...
El Duque,
ReplyDeleteI mentioned this in the comments in the Joe Peptone piece when I first heard of this.
This is a number which must be reported in official filing with NYS because of the Stadium deal. They undoubtedly minimized the total.
Like, I don't think that this includes parking.
I knew this number was large, but this is truly staggering.
A family of four has to take out a SB Loan to go to a game and this asshole moans about payroll..
Luckily, I discovered in retirement that I don't need sports as a diversion nearly as much as I did when I was working and raising a family. Now, sports is merely for amusement.
BUT,
My parents taught me never to wish death on anyone.
Sorry, Mom and Dad, I just did.
The Yankee 2023 season is already a success and they haven't thrown a pitch yet...
ReplyDeleteRemember all of the bullsht that started to pour out of Peter Gammons and Bristol regarding "competitive balance" after the Yankees "hegemony" at the turn of the millennium? All carefully contrived to get the owners their double secret salary cap. What was that line, something about despising a cut-rate parasite?
ReplyDeleteAs a businessman, I know that revenue does not mean profit. You have to take expenses out. Employees and all those benefits need to be extracted from that number. From the GM, all the way down to the janitor and extra police costs on game day. Also utilities and taxes.
ReplyDeleteThomas, as a former business owner and the son of a business owner, I realize that there are expenses.
ReplyDeleteBut, after the expenses that you note, add in the income from the YES network, plus commercial revenue, plus revenue received from various MLB TV contracts and streaming services, plus revenue from MLB and Yankee merchandise, plus revenue from concessions including rent for restaurants, plus what I may have left out and the Yankees make a fortune.
Hal should stop screaming like a stuck pig and this travesty would be somewhat more tolerable. But he can't stop crying poor.
I realize that there are unseen pressures exerted by other owners to keep payrolls down, but at least the a-hole can stop pretending that he cares about us.
They get no more revenue from me or my family.
Crains NY estimated Yankees NPAT in 2021 to be $245. That includes revenue from team business related sources such as the YES Network. That was when MLB was still feeling the aftershocks of COVID. That figure is projected to be higher in 2023, particularly with revenue from legalized spores betting. The team’s overall value is now over 6 Billion, the Steinbrenner family currently owns about 70% of the team.
ReplyDeleteNYC/EDC owns YS, the team only rents it. The rent? $1 a year.
Weep not for the financial plight of The New York Yankees Baseball Team.
Hear, hear, Duque! BRILLIANTLY put!
ReplyDeleteAnd yes, the other revenue stream aboundeth. Please note, too, that YS III is the SECOND rent-free stadium the taxpayers have built for your New York Yankees. They make an unbelievable amount of money...
But...if they ever want to make more—beyond selling for that estimated $4.2-billion payoff—all they have to do is hire a competent general manager and management team.
ReplyDeleteHire someone who knows how to stock and develop a great minor-league system, and scout the Caribbean and Japan. Have waves of cheap, young emerging stars coming up every year. Get good coaches and trainers to bring them along.
Ruthlessly trade the older, more expensive players the moment they lose a step or a mile off their fastball.
This is essentially how the Yankees did it for decades—including in those pre-TV days when they didn't really have such a huge market advantage over anyone else.
Do that now, even if it takes five years to make the transition. The fans—the real fans—won't kick. And as a consistent winner, you'll make more money than ever.
But then...all his fellow billionaires won't smile at HAL at their yearly meetings. Or is it that, then, his daddy's legacy will shine brighter than ever? Hmm...
The estimates here are considerably undercounted. According to reports in Forbes, Sports Business Journal, and other reliable business sites, here is the real breakdown of NY Yankees revenue. This doesn't include separate sponsorships and ancillary income:
ReplyDelete(Numbers are in millions)
Shared MLB revenue...363
Tickets..............375
YES TV...............56
Radio, Local.........20
Concessions*.........223
Total................1.037 BILLION
* Concession total based on MLB av. of $ 71.00 per ticket holder. You can bet it's considerably higher with the Yankees. El Duque's guess of $ 12.00 for parking is way off. Last year the cost was a whopping $ 26.50 per car!
$ 71.00 X 3.14 million attendees. *
ReplyDelete
ReplyDeleteI wrote this earlier but got busy and didn't submit. Carl W's post is considerably more informed. Posting now FWIW.
There was a metric in general use about 20 years ago that stated that game-day concessions revenues were approximately 100% of ticket revenues. If that 1:1 ratio still holds true, Hal the bastard earned $690 million last year not $344.7 from ticket/concession sales. As noted, this is before TV revenues (YES and otherwise), revenues from every freakin' parking tower in the Bronx that the team owns, and other sources that we may or may not know about.
If I recall correctly, King George signed his then ground-breaking 10-year deal with MSG Network in the late 1980s for $500 Million. At the time, no shortage of journalist wags pointed out that the Yankees didn't need to open their doors and charge for tickets and concessions in order to turn a profit. And if THAT metric still holds true, the fuckers should consider lowering the price of a beer, at least.
Oh, and I'll let you know what that beer price is when I go on March 30th, Opening Day.