Yankees spending habits

I know that no one knows but I'm discussing this with my Yankee-lover friend.

The Yankees make A LOT of money.

The Yankees spend A LOT of money.

Everyone always says "every team wishes they had Steinbrenner as an owner". But is this true? Do we know that the Stenibrenners put a higher percentage of money back into the Yankees? Or are the Yankees the Yankees ($200 million payroll) just because they are the Yankees ($bizillion in revenue)?

I just assumed that they do, but I'm not sure. Interesting point, though.

I wonder if the ratio of profit to expense for the Yankees would be higher or lower when compared to, say, the Pirates. Something interesting to dig up.

from 2008

Code:

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Yankees: Revenue was 375,000,000
Payroll was 201,449,189
Angels Revenue was 212,000,000
Payroll was 113,709,000
Phillies Revenue was 216,000,000
Payroll was 113,004,046
Red Sox Revenue was 269,000,000
Payroll was 121,745,999
Dodgers Revenue was 241,000,000
Payroll was 100,414,592
Cubs Revenue was 239,000,000
Payroll was 134,809,000
Mets Revenue was 261,000,000
Payroll was 149,373,987

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Yankees Payroll = $200 million

Pirates Payroll = $48 million

So, for the Yankees to 'reinvest' at a higher rate than the Pirates the Yankees would have to have revenue of roughly 4 times the Pirates.

That doesn't pass the smell test to me

Quote:

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Originally Posted by free2131

I just assumed that they do, but I'm not sure. Interesting point, though.

I wonder if the ratio of profit to expense for the Yankees would be higher or lower when compared to, say, the Pirates. Something interesting to dig up.

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HGM posted a link a while back that showed what percentage each team spends of their revenue on payroll.

Yankees were one of, if not the highest, percentage, while teams like Minnesota, Pitt, San Diego, and even St. Louis were on the lower end.

I slightly remember that link. I'd like to see it again

I HIGHLY doubt that that revenue number for the Yankees includes ALL yankee related Revenue. Probably that's true of most teams

Quote:

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Originally Posted by Jeffy25

HGM posted a link a while back that showed what percentage each team spends of their revenue on payroll.

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http://www.subtraction.com/2009/11/0...nkees-spending

Quote:

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Originally Posted by filihok

I HIGHLY doubt that that revenue number for the Yankees includes ALL yankee related Revenue. Probably that's true of most teams

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This.

I wonder if the it also takes into account the revenue sharing.

Quote:

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Originally Posted by filihok

I slightly remember that link. I'd like to see it again

I HIGHLY doubt that that revenue number for the Yankees includes ALL yankee related Revenue. Probably that's true of most teams

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I'm looking for the link, having a hard time digging it up.

and of course there are other revenues for some teams....The Yankees for example own the YES network, the Cardinals own the local radio station and other things as well. But just gate revenue, that is what the link has.......i'll keep looking.












and now I see HGM re-shared it.

here it is

Quote:

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Originally Posted by free2131

This.

I wonder if the it also takes into account the revenue sharing.

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Many teams, and many owners usually have other investments that they earn income off of.....Most teams could probably double their on field payroll and probably could be fine....but that would of course kill their profits and wouldn't necessarily be a good choice.

As long as the team is still making money, they should be investing all that they can to make their on field product as good as possible. Winning does bring in fans...and you aren't going to win without at least some payroll.

The thing is, other teams HAVE the money, but they do not spend it. There are some owners who are these raking in much more than Steinbrenner, but they are afraid to spend it.

Quote:

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Originally Posted by yanks27

The thing is, other teams HAVE the money, but they do not spend it. There are some owners who are these raking in much more than Steinbrenner, but they are afraid to spend it.

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Any proof?

I legitimately don't know if you are right or wrong.

I'd guess that you are wrong, but that's just a guess

Quote:

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Originally Posted by filihok

Any proof?

I legitimately don't know if you are right or wrong.

I'd guess that you are wrong, but that's just a guess

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I agree.

but there is some level of proof.

When you rank the owners overall financial portfolio's Steinbrenner is one of the least rich, while the Twins Owner (recently died I think) was by far the wealthiest.

But that is because of other endeavors usually. The Twins owner owns a lot of things in Minnesota, not just the Twins. But with any business, the owner isn't going to spend more in one investment than what it earns. I don't care how rich you are, you don't want to lose money just so you can have a good baseball team, but someone like Steinbrenner might want to.

I imagine the Yankees profit margin annually isn't as high as some teams, although they keep increasing their revenue by winning more and more. The more you win, the more you can charge and the more people that are going to come see you play, buy merchandise etc.

Just like any business, you have to spend money to make money. You hire a GM to figure out what the best strategy on how that money should be spent.

I need to find the list of each owners portfolio's...but Steinbrenner isn't leading that list, and it isn't really that close....in fact the owner of the Marlins is one of the richest I believe as well. Steinbrenner owns some real estate, and of course, the Yankees, which are valued over 1 billion currently.

http://en.wikipedia.org/wiki/List_of...incipal_owners

you can at least select the owners and see their net worth if you want to.