Yankees spending habits

[Jeffy25]

http://www.forbes.com/2006/04/17/06m...420sports.html

[kenny1234]

Those "investment rates" are entirely meaningless. There are a ton of costs associated with running a major league team that aren't accounted for, and that, presumably, do not vary a great deal across teams. There are other costs that will vary significantly across teams, such as stadium costs or things like that. And as people have noted, the revenues are only a fraction of total revenue.

It is interesting to compare that to something like the NHL, where the salary cap is based around the players receiving 55-57% of league revenue every year, or basketball where the players receive 51% of league revenue. It looks to me like baseball is a long way from that level of compensation.

[Jeffy25]

Those "investment rates" are entirely meaningless. There are a ton of costs associated with running a major league team that aren't accounted for, and that, presumably, do not vary a great deal across teams. There are other costs that will vary significantly across teams, such as stadium costs or things like that. And as people have noted, the revenues are only a fraction of total revenue.

no offense

but duh

the table isn't talking about profitability....it shows what percentage of gate revenue is spent on payroll. It isn't in detail of how much a team makes, spends etc. it's a start to being able to answer fili's question...but we really don't know how much is actually spent in comparison to total revenue. Hell each team spend about 30 percent of their revenue in taxes alone, you start talking about vendor expenses, utilities, employees etc....the list is long. There are also a ton of revenue outlets that we don't really know, we can assume things like merchandise, food, beer, etc.

[dickay]

I'm going to say that, on average based upon total percentages..i'd bet they "reinvest into the team payroll" less than most teams. I just think they are a money making machine. Sure the total number spent on payroll is higher, but i'd bet its a smaller percentage of profit than most other teams spend.

[Jeffy25]

I'm going to say that, on average based upon total percentages..i'd bet they "reinvest into the team payroll" less than most teams. I just think they are a money making machine. Sure the total number spent on payroll is higher, but i'd bet its a smaller percentage of profit than most other teams spend.

ahem

Granted this isn't based on profit

[dickay]

ahem

Granted this isn't based on profit

you hit the nail on the head right there. And I also question the listed revenue..if it includes all streams, not just for the Yanks but for all of them? Does the Yankees have any other "dba" they operate under that also brings in large revenue streams? Wouldn't be surprising at all.

Lets face it...I think team CFO's chuckle when they see these kind of public financials. I don't believe any are close to accurate. Nothing at all to base that on though.

[Jeffy25]

you hit the nail on the head right there. And I also question the listed revenue..if it includes all streams, not just for the Yanks but for all of them? Does the Yankees have any other "dba" they operate under that also brings in large revenue streams? Wouldn't be surprising at all.

Lets face it...I think team CFO's chuckle when they see these kind of public financials. I don't believe any are close to accurate. Nothing at all to base that on though.

it's gate revenue....and payroll.

That's what we know, that's what the list is sharing. nothing more.

and did you read the rest of the thread? We already stated all of that.

[kenny1234]

no offense

but duh

the table isn't talking about profitability....it shows what percentage of gate revenue is spent on payroll. It isn't in detail of how much a team makes, spends etc. it's a start to being able to answer fili's question...but we really don't know how much is actually spent in comparison to total revenue. Hell each team spend about 30 percent of their revenue in taxes alone, you start talking about vendor expenses, utilities, employees etc....the list is long. There are also a ton of revenue outlets that we don't really know, we can assume things like merchandise, food, beer, etc.

That's fine, but then this list has nothing to do with the original question. When you post this, it appears to imply that the payroll advantage of the Yankees is not just because of revenue - that they spend a higher percentage of revenue as well. But without a bunch more information, that implication is simply misleading - and I was just trying to point that out.

[dickay]

That's fine, but then this list has nothing to do with the original question. When you post this, it appears to imply that the payroll advantage of the Yankees is not just because of revenue - that they spend a higher percentage of revenue as well. But without a bunch more information, that implication is simply misleading - and I was just trying to point that out.

i agree...thats why i was confused when he posted it for a second time in this thread after my initial post within this thread. Its really irrelevant to this..well, any discussion.

[Jeffy25]

i agree...thats why i was confused when he posted it for a second time in this thread after my initial post within this thread. Its really irrelevant to this..well, any discussion.

how is it irrelevant? It gives you two pieces of information getting you closer to answering the question that was asked.

Gate revenue in relation to payroll is a good way to start measuring how the Yankees spend their money.

[dickay]

how is it irrelevant? It gives you two pieces of information getting you closer to answering the question that was asked.

Gate revenue in relation to payroll is a good way to start measuring how the Yankees spend their money.

because of everything already mentioned....gate revenue is a small piece of the whole equation and it alone can in no way answer the question. As Kenny said, its also misleading.

I suppose you could say its a "start", as you have. But its equivalent to me asking you to put a car engine together and giving you only page 135 of the instruction manual.

[Jeffy25]

because of everything already mentioned....gate revenue is a small piece of the whole equation and it alone can in no way answer the question. As Kenny said, its also misleading.

I suppose you could say its a "start", as you have. But its equivalent to me asking you to put a car engine together and giving you only page 135 of the instruction manual.

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 possible.

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.

[dickay]

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.

what bothers me with this statement is how yankee fans use it to say that just because Owner A has more personal wealth than Steinbrennar, he should be spending more. They make this claim knowing full well that Owner A's overall wealth should have nothing to do with the teams finances. Steinbrennar is NOT dipping into his own wealth to finance that team....every dollar he spends is calculated to earn a return on his investment. If the MINN or FLA owner dips into his personal vault to finance a team, its very unlikely they will have the same opportunities for a return on that investment.

It seems every Yankee fan I know thinks the game is similar to Field of Dreams, except for the catch phrase is, "If you spend it, they will come". Its not apples to apples. The Minn or Fla or pretty much every other owner in the league cannot get the same return on their investment as NYY can. Part of that is the Yanks great history and world wide fan base and marketing over the past century. Its something no team can compete with.

[Jeffy25]

The Steinbrenner family's 85% interest in the parent company, Yankee Enterprise Global, which also owns stakes in the YES Network, Legends Hospitality Management and IMG-Legends, is worth $2.8 billion

felt like sharing overall worth and what percentage of ownership

[Jeffy25]

http://www.forbes.com/2008/04/16/bas...ballintro.html

http://www.fantasybaseballcafe.com/f...c.php?t=238635

http://www.rodneyfort.com/SportsData/BizFrame.htm