Are The Yankees For Sale? Steinbrenners Say ‘No’
Posted by: Brian Sinkoff
Published on: May 24th, 2012 at 2:32 PM
The Daily News reported Thursday that there were rumors in Major League Baseball and New York banking circles that the Steinbrenner family “is exploring the possibility of selling the Yankees.”
Not so, says Yankees managing partner Hal Steinbrenner. ”It is pure fiction,” he said. “The Yankees are not for sale. I expect that the Yankees will be in my family for many years to come.”
Hal’s father, George Steinbrenner, headed a group that bought the Yankees from CBS Inc. in 1973 for about $8.7 million net. The elder Steinbrenner died two years ago.
Yankees president Randy Levine also says the team is not for sale and that, “we have not told anyone or indicated to anyone that it’s for sale.”
Franchise values have been given new focus since the Los Angeles Dodgers sold on May 1 for $2 billion.
In order to disclose financial records to potential investors, the Yankees would need to notify the commissioner’s office. “Major League Baseball has received no indications from any representatives of the New York Yankees or anyone else that the club is for sale,” the commissioner’s office said in a statement.
I don’t believe these rumors for a second. The only reason there’s any talk about this right now is because the Yankees are struggling right now and have a lot of dead-weight contracts (Rodriguez, Teixeira).
Why on earth would you sell a franchise with a TV network that makes over $400 million in revenue every year? Not to mention a stadium that rakes in $25 million in operating income on a yearly basis and is always sold out.
Let’s not forget about merchandising rights such clothing, cologne, limited edition food & drink, novelty items (bobbleheads, fatheads) household items (lamps, towels, blankets, tables) etc.
Owning the Yankees is like a license to print money. Why would the Steinbrenner’s even entertain an offer?
If the Steinbrenners just sold the team but kept the YES Network they’d be at the mercy of the new owner for access to the club. Consequently, the value of YES would plummet; and without the network, merchandising, sponsorships, business partnerships and the other assets of the team would just be a lost cause.
Let’s be honest here – George Steinbrenner was a genius. His business model was ground-breaking – it encouraged spending on the team to raise and maintain the value of the rest of the assets. Brilliant!
That being said, I think the Yanks will remain with the Steinbrenner family for quite awhile.
Brian Sinkoff is a licensed Real Estate agent with Coldwell Banker Prime Properties. He’s been in media for nearly 20 years – most recently as host of “Sound-off with Sinkoff” which was on the ESPN Radio affiliate in Albany, NY. Sinkoff is also a frequent contributor for Time Warner Cable Sports television.