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Where do the yankees get all their money?

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Where do the yankees get all their money?

Postby godallahstar » Wed Oct 13, 2004 4:01 pm

Just wondering, cause my friends are under the impression that all baseball owners are billionaires but aren't willing to put up the money george steinbrenner will.
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Postby thetongueofire » Wed Oct 13, 2004 4:11 pm

your friends pretty much have the right idea. theres definitely owners a lot richer than Steinbrenner but they dont put as much money in (Cubs, Braves- Time Warner lol, etc.). Steinbrenner is in one of the best sports markets, so that helps him (Yankees make more money from their RADIO RIGHTS than all but a few teams make from TV rights). but he definitely puts more of his money back into the Yankees than any other owner.
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Postby Madison » Wed Oct 13, 2004 4:24 pm

George reinvests into the team where as many other owners do not. The Yankees make a fortune every year on many things such as: The YES network, radio, merchandise sales, ticket sales, not to mention all the small things that add up like parking, concessions, playoff ticket sales, etc.

George takes those profits and reinvests a lot of them back into the team to field a winner the next year while a lot of other owners just sit back and keep the profits. Unfortunately, by not reinvesting, those owners end up with an off year or two somewhere down the line and they actually lose money for that one or two seasons. George avoids that possibility by fielding the best possible team and committing the resources (money) to making sure he gets it.

Some say it's bad for baseball, and I don't get into that discussion, but from a business standpoint (and all owners are businessmen first and formost), it's a very smart strategy. ;-D
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Postby raiders_umpire » Wed Oct 13, 2004 4:41 pm

you know the saying "you build it and they will come"........

well that is whay steinbrenner does, he keeps building the yanks up to be abetter team, by spending the money he made the year before, knowing that even more will come in the following year so that he can make even more money...........
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Postby SaintsOfTheDiamond » Wed Oct 13, 2004 7:03 pm

raiders_umpire wrote:you know the saying "you build it and they will come"........

well that is whay steinbrenner does, he keeps building the yanks up to be abetter team, by spending the money he made the year before, knowing that even more will come in the following year so that he can make even more money...........


That's pretty much it in a nut shell. Although he does have an advantage that it's the Yankees being such a high profile team and being in New York.
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Postby Rico The Retard » Wed Oct 13, 2004 7:51 pm

Steinbrenner is one crazy mofo
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Postby ajgnydc722 » Wed Oct 13, 2004 8:13 pm

All of the above is true. I don't understand why people call the Yankees bad guys when they set the perfect example for what every team should be doing.
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Postby LBJackal » Wed Oct 13, 2004 8:41 pm

I'm sure all owners would love to be able to do what Steinbrenner does. But I don't think it's financially possible.

Let's say for every extra $1,000,000 George re-invests, up to $50,000,000 he gets a return rate of 10%. So he'd make $5,000,000 profit eventually by investing $50,000,000 now. Say the owner of another team, the Jays for instance, gets a return of 2% for the same investment. And after the $50,000,000 threshold, the Yankees return rate becomes 5% while the Jays' return rate becomes -2%. The Jays lose $20,000 for every extra million they invest, while the Yankees are still gaining a lot fo money per their investment.

Keep in mind this is short-run, and longrun would be different. But it's not as simple as Team X investing more money to get more profit. There are different markets for every team. It takes a long time to build up a market. George has been working at it for a long time, and only recently (the past decade) have they been extremely successful. This is all accomplished with the population of the entire country of Canada in his state alone.

Now I'm not excusing teams like Milwaukee who don't spend enough money, but a lot of teams don't have the capability to do what the Yankees are doing. On a lesser scale, yes. The Jays are owned by a radio and TV company, Rogers, and have all that nice stuff that the Yankees have, but our revenue is nowhere near theirs.

I think baseball needs a salary floor, and also a salary cap. Each issue would cancel each other out in terms of player and owner happiness. Maybe not, but I can dream :-D
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Postby thetongueofire » Wed Oct 13, 2004 8:52 pm

LBJ wrote:I'm sure all owners would love to be able to do what Steinbrenner does. But I don't think it's financially possible.


that's very true.

anyways, i would blame mlb, selig and his homies, not the Yankees.
[size=10]Manny Ramirez....$20 million
Pedro Martinez....$17.5 million
Curt Schilling...$12 million (and a $2 million bonus)
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Postby Rico The Retard » Wed Oct 13, 2004 9:57 pm

lol tongue....selig's homies....lol :-D
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