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Yankees, Nets talk merger
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February 25, 1999: 2:33 p.m. ET
Teams have signed a letter of intent to combine their business operations
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NEW YORK (CNNfn) - Baseball's 1998 World Champion New York Yankees have signed a letter of intent to merge business operations with basketball's New Jersey Nets, a Yankees spokesman said Thursday.
Howard Rubenstein, spokesman for the notoriously contentious Yankees owner George Steinbrenner, confirmed a New York Times report stating the two clubs were discussing a joint ownership agreement.
Under the terms of the proposed deal, the Nets would pay cash for Yankees' stock to share television rights, sponsorship and marketing, according to the Times report.
"It's only a letter of intent though; it is not a closed deal," said Rubenstein. "Also, Major League Baseball and the National Basketball Association have to approve it."
He added the details of partnership have yet to be negotiated, and it remains unclear how the two teams' executives will control day-to-day operations both on and off the field.
A merger would give both teams more power in cable television negotiations, according to the Times, and would put to rest speculation that Cablevision would acquire the Yankees. The two parties were in talks to finalize a deal that would have cost Cablevision at least half a billion dollars, but talks disintegrated in late 1998.
It is unclear how the merger would affect plans by both teams to relocate. Steinbrenner has been looking for a new home for last year's World Series champions, while the Nets have discussed the prospect of building a new stadium in Newark.
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