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Yankees top in money too
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October 29, 1996: 8:37 p.m. ET
Despite owner's complaints, World Series champs have sweet deal
From Correspondent Sean Callebs
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NEW YORK(CNNfn) - When the New York Yankees defeated the Atlanta Braves Saturday, they ended a season that will go down in the record books.
Not only did the team make a mark in baseball history, it also posted some good numbers in the ledger books. Despite Yankee owner George Steinbrenner's complaints about Yankee Stadium, the franchise has one of the sweetest financial deals in baseball.
Along with the World Series crown, the Yankees own another title: the highest payroll in professional baseball, at $55 million.
Major League Baseball contends that more than half of its teams lost money this year, although many were in smaller markets. But thanks to the most lucrative local television deal in baseball, many analysts say Steinbreinner's team won't have to worry about making ends meet.
"They have far and away the greatest amount of broadcast revenue of any Major League Baseball team. Some estimates have them getting up to $50 million a year from their broadcast deals," said Sean Brenner of Team Marketing Report.
Although the Yankees guard their books tightly, it is widely known their cable television contract with the Madison Square Garden Network accounts for most of that $50 million. Other teams such as the Texas Rangers, Los Angeles Dodgers and Milwaukee Brewers don't make a dime off cable tv.
National television revenue brings in about $10 million per team each year. Bob Gutkowski, president and chief executive officer of The Marquee Group, said that gives the Yankees a huge financial edge even before the first ticket is sold. (70K WAV) or (70K AIFF)
While more than television deals go into determining a team's fortunes, analysts say the fact that the Yankees' attendance is average means they should make about $30 million on ticket sales. Revenue from concessions, parking and in-stadium advertising brings in millions more.
When all those revenue streams are added up, Team Marketing Report estimates the Yankees will turn an operating profit of $24 million this year.
Those good financials haven't been enough to silence Yankee principal owner George Steinbrenner who wants the team to leave the Bronx for a new stadium either in midtown Manhattan or New Jersey.
Yankee Stadium is rich in baseball history, but the team's management said the club's bottom line is hampered by the fact that it only has 17 luxury boxes.
They say a new stadium with 100 new luxury boxes could bring in an estimated $6 million a year from corporate ticket holders. Team officials say in a time when salaries and other expenses are increasing, that could have a big impact on their financial success.
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