Re: Yankees spending habits
Quote:
Originally Posted by
Jeffy25
Seeing how it's their largest form of revenue, it would be like asking me to build a car with all but page 135 of the manual.
We are pretty aware of what the Yankees make each year, we can easily find it, the same can be said for each team in baseball. And we can pretty easily know how much they spend in payroll....so being able to answer fili's question is somewhat plausible.
Hell Forbes puts out a
report each year to make the research easier for us. The one I linked to is the one from like 02, you can probably find a more recent one pretty easily.
The Yankees do in fact reinvest more money than other teams, but they also have higher revenue than most teams. But on a percentage basis, they do routinely invest a higher rates than other ball clubs.
If you take the time to do simple research you can find a lot of articles sharing what the Yankees overall make, as well you can find out what Steinbrenner is worth. It isn't hard to find out the information, I do it for potential new clients, although some of my favorite sites to learn revenues for potential clients aren't going to have the Yankees on them.
i dunno...i looked at both your forbes links and neither was a "report". the second was an article discussing YES...and the first, well I can't recall at the moment but I didn't find it very helpful in answering the question.
There used to be a time when concessions were a larger take than ticket sales. With the Yankee ticket seat costs now I doubt thats still true lol. Regardless concessions are still a big piece. Marketing, investments, parking, merchandise, etc. are surely just a few ways the team adds revenue. I'm sure they find many creative ways to get money from their stadium...i'm sure the Yankees have many many more revenue streams.
Now revenue alone is not enough to answer this question either. Operating costs i'm sure vary significantly from team to team. You can't say for example that the Yankees pay 50% of their revenue in payroll and the Tigers only pay 40%, therefore the yankees reinvest alot mroe than the Tigers, because the Tigers may have alot more operating costs & expenses than the Yankees (or visa versa).
My point is, the question is alot more complicated than its being made out to be. As much as everyone would like to have it nice and simple...it just isn't and won't ever truly be known. We don't have nearly enough information.
For example, using your chart and making pretend that the revenue is in fact accurate for all revenue sources combined....the Pirates "reinvested" 34% into payroll whereas the Yankees "reinvested" 54% into payroll. If the Pirates expenses plus payroll pushed them to the break even point with their revenue, and the Yankees with their expenses STILL turned a profit of 100 Million....who's truly "reinvesting" a higher percentage? Its the Tigers.
Re: Yankees spending habits
Quote:
Originally Posted by
Jeffy25
whats funny, is one of the links you provided...a commenter detailed my concerns rather eloquently and provided a more accurate chart to use for comparisons. Here is his points, followed by the link;
Quote:
Well, as is chronicled elsewhere on these boards, with the Yankees you also have to consider the profits from the YES Network (they don't get two bucks a subscriber for the Boston-New York Poker Showdown). And that adds in about $100MM or so in profits off of about $260MM in Revenues.
http://www.multichannel.com/article/CA6363941.html
Also, you have to be very careful how you use the #s because there's probably a fixed cost of I really don't know but would guess about $10MM just to run a franchise. To pay for the front office, the operations, the minor league clubs, and all that. Which would impact the lower-revenue clubs to a greater extent (as it would be a higher %age of their available Revenue). So really what you should consider is revenue as a portion of available income (and for the Yankees you'd have to reduce their revenue by their income-sharing # as well).
he followed it up with;
Quote:
Well, you would, except they don't exist.
Annual reports (and more importantly, the 10-K's) are only produced and publicly available for public companies, i.e. ones whose ownership is determined by publicly-traded stocks. Baseball franchises are privately owned. So they have annual results but they just get reported to the ownership group. Which is one of the reasons that owners and players fight so much on money. Because the players never really trust that they're seeing the entire picture (every once in a while, you'll hear players saying owners need to, "open their books" ... that's what they're talking about). So the best you can do is rely upon Google or Bloomberg or media reports for best estimates of revenue & profit.
Or, to be much more simple about it, you can just go by the estimated values of the franchises since that should theoretically represent the present discounted value of their profit streams.
Now this link shows team valuations for the 2005 season. Now, of note is that the Yankees have gone up dramatically with their new stadium, whereas most teams now i'd venture have actually gone down with the economy woes. The Yankees aren't immune to the economic plight, and have taken a hit over what they WOULD be worth if not for...but they are still worth more than they were in 05.
http://www.forbes.com/lists/2006/33/Income_1.html
Re: Yankees spending habits
Steins have always invested wisely. They dont lose money. On YesNetwork alone they out earn most teams.
New stadium is municipal. They sold bonds for 50% and got NYC to pick up the other half. Then they charged 3x to their fans. End of year, they made a crap load of money. At least 100,000 old ladies in NY couldnt figure out why their cable went up by $2 and their taxes went up by $15. I am a Yanks fan, but they are scum on finances. They actually asked for a statewide tax to pay for the stadium they got for free. See what i mean?
Re: Yankees spending habits
http://www.pittsburghlive.com/x/pitt.../s_660477.html
Quote:
Coonelly [Pirates team president] provided limited data about what has been spent the past two years on player acquisition (via the draft and internationally) and development. The $11 million influx for baseball capital improvements included:
• Construction of an academy in the Dominican Republic for $5.4 million;
• Renovations to Pirate City, some of which were paid for by the city of Bradenton, Fla.;
• Equipment and facilities upgrades at PNC Park and Pirate City, such as the installation of ProBatter video pitch simulators;
• Purchasing a low Class A team and relocating it to Bradenton. The cost of that franchise was around $3 million.
Since 2007, when Coonelly was hired as part of a front-office overhaul, the Pirates have increased their budget for the draft by $8.3 million and upped their budget for international free-agent signings by $1.87 million. In that same span, the team has nearly doubled its domestic scouting staff (14 to 25) and increased its international scouting staff (19 to 33).
