New York Yankees - richest baseball club in MLB?

by stephanie ~ June 6th, 2009

Ever wonder how the New York Yankees operate and became the richest baseball club in MLB at some point or another? Well, some people probably know, but to those who doesn’t, here’s an explanation in a nutshell!

I stumbled into a great information from someone earlier and I was amazed as to how many fans actually made the team a very lucrative business. The “behind the scenes?” Do the Math!

It is estimated that 51 thousand avid fans pay an average of $28 to come to 81 home games. And that’s not all, US fans sip sodas and hot dogs at $4.50 each which generate s half of the teams sales. The other half comes from $140 ad deals and media rights. So in actuality, while fans are there to cheer, just hanging out with family, they are boosting the franchise’s profit. The “booing and the shouting” of overly-enthusiastic individuals that are merely crazy about the Yankees are not actually put to vain. They are helping the team get rich!

The New York Yankee’s largest expense comes from their player costs which are about $200 million per year. There is also the league revenue sharing and the cost of flying the players across the country. (You didn’t think that was all fun and no cost did you?)

Some season they may loss millions, but the following year they earn it back and even more revenue. At present, the MLB team is valued at $1.2 billion. So you don’t really look at it like a loss and profit game year after year because Steinbrenner also owns more than a third of the YES network which caters to 8.7 million subscribers. Pretty astounding, isn’t it? The revenue from here alone, top a quarter of a billion.

Purchasing the YES network was certainly a great move of the business tycoon and owner of New York Yankee’s because they generate even more profit, making it easy to cover up the player’s expense!

Thanks’ to Steinbrenner and his staff’s brilliant minds for thinking of something creative and big like this. What’s even more interesting is their plans recently. The team financed an $800 million stadium that will open in 2009; another utterly amazing move by the owner because that will deduct their stadium-operations expense, lowering their overhead cost!