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Don W
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The salary # is bogus. Baseball writers do this to the Yankees all of the time. What they did was average the contracts of all of the players. Several of the Yankees have back loaded contracts. CC will make about $10 million more this year than last. Averaging the contracts inflated the salary this year. Watch, you will now see writers site the Yankee salaries WITH OUT averaging starting this year because that will be a higher # than being consistent and averaging them. The Yankees DID NOT pay $226 million in salaries last year. The real # was just a shade under $202, $207 if you count Giambi's $5 million buyout, (which does not count toward the luxury tax). From Cot's Baseball contracts.
"Are wind worth more to the Yankees than to the Red Sox, which is the point of the comparison here?" Yes they are although, as with anything else, the law of diminishing returns would apply. The Yankees have built their revenue stream through the promise from ownership that they will do what it takes to win every year. They don't always make the right moves but their is little doubt that they invest their revenue to win games and that is their contract with their fans. The moment their fan base starts to doubt that their revenue wlll suffer. Let's suppose the Yanks decided to cut their payroll to league average and replace their front office and end up with mediocre talent. Almost immediately you'd see Yankee teams that generally won 75-85 games but only occasionally contended for the playoffs. Do you think the YES network ratings might suffer? What about attendance? Merchandise sales? If 10 more losses for a few seasons caused the Yanks to lose 25% of their viewership they would lose more money per percentage point than any other team. Due to the fact that they not only get the team share of the add money but the network share also. Also, a larger percentage of the fans of perennial contenders are of the bandwagon variety. I doubt anyone would deny that, the Red Sox have picked up a lot of them lately, what do you guys call them? The "Pink hat" fans? (Nothing against them, a lot of band wagoners turn into die hards down the road and everyone has to earn die hard status.) These fans move on at the first sight of trouble and a couple of 70 win seasons and their gone. All factors being considered, the cost per fan for those that stop going/watching/buying the Yankee product costs the Yankees more than any other team with only a handful of other teams even in the same ballpark as the Yankees and everyone knows who they are.
Toggle Commented Jan 11, 2009 on Good Value at YFSF
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Interesting article that goes into the details of what the informed baseball fan knew. The 2008 Yankees drastically underperformed their payroll thanks to injuries, below average seasons by key performers and several players being paid big money for the last time due age-based decline. Though a fairly good read the article seems to miss an obvious point when considering the Yankees return on their investment. That being the absolute stone cold fact that wins are worth more to the Yankees than any other team in baseball. The idea that win values are equal for teams across baseball in an extemely flawed concept. As someone else already mentioned, the Yankees own their own sports network and the ratings are through the roof. Ratings mean revenue and winning means ratings. The same can be said for attendance and ticket revenue, especially considering the cash cow the new Yankee Stadium is going to be. Based on the returns from injury of two of the biggest offenders in 2008. Expected bounce back seasons by Jeter and Cano. The replacement of big ticket under performers with younger stars and the fact that the 2009 payroll will be lower than in 2008. To expect anything but these numbers approaching the black in 2009 would be foolish. Factoring that a Yankee win is worth more, monetarily, than any other team in baseball by a significant amount. Yankee brass will most likely be very happy with the returns of the 2009 season.
Toggle Commented Jan 10, 2009 on Good Value at YFSF
1 reply