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The Yankees just make more

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The Yankees just make more

Postby Matthias » Wed Apr 21, 2010 4:01 pm

After a slow start, a surprisingly strong finish in this SI article on how in the MLB, it's not about payroll, it's about revenues: http://sportsillustrated.cnn.com/2010/w ... index.html

This just supports what I've been saying for years which is:
1) Yankees fans make too much out of how much they try, they care, and blah blah blah and not enough about how they're in a very large market with a very affluent fanbase and a number of businesses (law firms, investment banks, marketing and fashion houses) that it can make sense to the business plan to buy top-priced tickets and luxury boxes.

2) The easiest answer to diminish this competitive advantage would be to drop a 3rd team into the NYC metro area... if that's Brooklyn, Northern NJ, Western CT, or where, I'm not really sure. But if you had another team carving into the Yankees and the Mets fanbase, you'd see better equality in the league.
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Re: The Yankees just make more

Postby StlSluggers » Wed Apr 21, 2010 4:05 pm

re: #2 that's gonna be harder and harder the more the yankees expand and become leveraged.

you'll get a hell of a time trying to tell an organization that they can't have a market that they just went into hoc to get
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Re: The Yankees just make more

Postby Matthias » Wed Apr 21, 2010 4:10 pm

They're 1 vote out of 30.

And the state of Minnesota just went into hoc to provide the Twins with a new stadium.... are you saying that they don't deserve to play on a level playing field?

Steinbrenner and Wilpon wouldn't like it, I'm sure. But it's really what's best for the game; is not unfair to them; and is a lot less radical than some of the other crazy league alignment deals that come floating out of the MLB offices the past couple of months. They could either do it via expansion or relocation. Either way, no major ripples from anyone but the NYY and NYM. The MLBPA would certainly be in favor of 25 more jobs if it was done with a new franchise.
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Re: The Yankees just make more

Postby Matthias » Wed Apr 21, 2010 4:15 pm

The Yankees/Mets objecting would also lose steam if someone pointed out that the NYC Metro area has 1/6 of the population of the United States, but only 1/15 of the nation's baseball teams. To really even it out, MLB should be dropping in 3 more. But I think 1 would be effective enough to do the trick... or at least make their competitive advantage something within reason.
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Re: The Yankees just make more

Postby thedude » Wed Apr 21, 2010 4:16 pm

Its good for everyone that the Yankees can charge monopoly prices in New York, remember there is revenue sharing now.

If a third team were put in New York it would probably just cannibalize the ticket sales of the Mets and Yankees, while deflating ticket prices, and lowering revenue. A third team in New York probably won't create too many more baseball fans, but it will decrease the revenues of the two teams currently in the city. Lower revenue means less revenue to share.
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Re: The Yankees just make more

Postby Matthias » Wed Apr 21, 2010 4:18 pm

thedude wrote:Its good for everyone that the Yankees can charge monopoly prices in New York, remember there is revenue sharing now.

If a third team were put in New York it would probably just cannibalize the ticket sales of the Mets and Yankees, while deflating ticket prices, and lowering revenue. A third team in New York probably won't create too many more baseball fans, but it will decrease the revenues of the two teams currently in the city. Lower revenue means less revenue to share.

Read the article. It really is a good piece. And he uses the numbers from Forbes (which, although somewhat speculative) do include the revenue sharing numbers for teams.

Also, you could consider the lackadiscal home attendance at teams in the cellar. It very well could be the case that although the Yankees contributes less $$ to revenue sharing, the other franchises would more than make up for it in interest in their own teams. Basically, it takes teams off of welfare and makes them more stand-alone viable.
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Re: The Yankees just make more

Postby StlSluggers » Wed Apr 21, 2010 4:19 pm

Matthias wrote:And the state of Minnesota just went into hoc to provide the Twins with a new stadium.... are you saying that they don't deserve to play on a level playing field?

That's not the same thing.

As much as I like your idea, it would be grossly unfair to grant a team a "region", watch them spend tons of their own money building it up, and then abruptly take it away from them because they are doing too well with it. To do it right, you'd probably have to grant Steinbrenner a hefty chunk of ownership in the new/relocated franchise, because that's about the only way he'd still get to make money off the area that he made profitable.
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Re: The Yankees just make more

Postby Matthias » Wed Apr 21, 2010 4:21 pm

StlSluggers wrote:
Matthias wrote:And the state of Minnesota just went into hoc to provide the Twins with a new stadium.... are you saying that they don't deserve to play on a level playing field?

That's not the same thing.

As much as I like your idea, it would be grossly unfair to grant a team a "region", watch them spend tons of their own money building it up, and then abruptly take it away from them because they are doing too well with it. To do it right, you'd probably have to grant Steinbrenner a hefty chunk of ownership in the new/relocated franchise, because that's about the only way he'd still get to make money off the area that he made profitable.

I disagree with your fundamental premise.

The area made George Steinbrenner profitable, not the other way around. This is New York City we're talking about, not Rapid City.
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Re: The Yankees just make more

Postby thedude » Wed Apr 21, 2010 4:27 pm

Matthias wrote:
thedude wrote:Its good for everyone that the Yankees can charge monopoly prices in New York, remember there is revenue sharing now.

If a third team were put in New York it would probably just cannibalize the ticket sales of the Mets and Yankees, while deflating ticket prices, and lowering revenue. A third team in New York probably won't create too many more baseball fans, but it will decrease the revenues of the two teams currently in the city. Lower revenue means less revenue to share.

Read the article. It really is a good piece. And he uses the numbers from Forbes (which, although somewhat speculative) do include the revenue sharing numbers for teams.

Also, you could consider the lackadiscal home attendance at teams in the cellar. It very well could be the case that although the Yankees contributes less $$ to revenue sharing, the other franchises would more than make up for it in interest in their own teams. Basically, it takes teams off of welfare and makes them more stand-alone viable.

My point is, while the Yankees do make more money than anyone else even after revenue sharing, they also contribute more to revenue sharing than other teams. If you add another team into New York (which by the way would have to pay for its own stadium), it will have to fight hard angianst the fact the other team teams have established fan bases.

There are no displaced Giants or Dodger fans looking for a new team (the situation the Mets found). The New team would have to compete on price to attract fans in the early years. In response to this new entrant under cutting prices, the Yankees and Mets would be forced to cut prices. Thus you would have a price war. A price war lowers revenues of the entire cartel (in this case MLB) and is thus bad for everyone.
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Re: The Yankees just make more

Postby StlSluggers » Wed Apr 21, 2010 4:27 pm

So the Yankees have always been the most wealthy team in baseball? Honest question.

Because I thought that they were kinda meh when Steinbrenner took over, and that their value has increased exponentially during his tenure. I mean, didn't he buy them for next to nothing? And didn't he pioneer many of the distribution markets that all teams utilize now en route to the team becoming the behemoth that they are today?
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