Report: New Stadium to be cash cow for Yanks

Britton recalled; Joba to the DL?
You have to be kidding me

The Yankees are clamoring for more tax-free bonds for the team’s new stadium, and club officials are predicting no great increase in revenues when the team moves across 161st St. next year. But according to a recent report in Crain’s, the Yanks stand to make a killing from the new stadium.

Aaron Elstein reports:

The team’s revenues – already the highest in the sport, at an estimated $327 million last year – are poised to double almost immediately. This quantum leap will be driven by factors ranging from higher prices for tickets and hot dogs to increased revenue from the YES Network for game telecasts. There will also be new revenue sources, such as leasing out the new stadium for concerts.

The ballpark promises to once again give the Yankees a decided financial edge over the world champion Boston Red Sox, after their archrival passed them on the field last year and narrowed the monetary deficit by expanding seating in cramped Fenway Park and sharply raising ticket prices.

“The new Yankee Stadium will change the economics of baseball,” says Robert Boland, a sports agent and a professor at [NYU].

Elstein goes on to explain why the Yanks are disputing this revenue claim. The Yanks, looking to cover escalating construction costs, want more tax breaks from New York. If the city knows just what a cash cow the Stadium will be, city reps will cry foul over any additional tax-exempt bonds.

Interestingly, the article also notes that some of the revenue projections are simply underestimated. The Yanks are claiming over $200 million in seat revenues for 2009, but that figure is based on an estimated attendance of 3.4 million. There’s no way the Yanks, in their first season in their new digs, suffer through an attendance drop of over one million. In fact, if all 81 home games aren’t sold out next year, I would be shocked. With concession prices on the rise, the team’s revenue will easily surpass their own estimated figures and approach $400 million or more per year.

Now, for baseball, this bad news. The Yanks are basically building their own version of the Mint at the corner of River Ave. and 161st. They could easily supprot a payroll above $225 million, and invested wisely, the money could create a powerhouse team for years. I can’t imagine Bud Selig or John Henry being too keen on those figures.

For the team, though, we can more clearly see why officials have long wanted a new stadium. It’s all about the money. Forget out-of-date facilities and less than state-of-the-art amenities. The Yanks are going to reach stratospheric profit levels. And as long as taxpayers aren’t footing the construction bills, I won’t complain.

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Britton recalled; Joba to the DL?
You have to be kidding me
  • Marty Puccio

    I’m not complaining either. I’m just sad that I’m getting priced out of everywhere except the bleachers.

  • Bobby Kent

    Bring on CC, Texiera, and a real centerfielder with the new revenue!

  • A.D.

    Ahhh capitalism!

    With NYC taxes, they’ll definitely get a boost in revenue

  • daneptizl

    Having no CF is better than Melky Cabrera. There might be a passed ball once in a while that advances runners better than him.

  • Yankees 4ever

    Do not forget the fact that the rest of MLB will also be losing out on revenue sharing and luxury tax for about the next 10 years since the Yankees paid for the stadium themselves. hee hee!

    Smells like Yankee Universe. ;-D

  • The Hitman

    I wish Torii Hunter was hitting free agency this year.

    • daneptizl

      18 mill/year for not even a .350 OBP….

      • A.D.

        he still OPSs over 800 and give you very good defense

  • JohnnyC

    This will probably hasten Henry/Lucchino cashing in sooner than later (the second championship in 07 probably extended their stay a few more years). I’ve always believed that those guys (with Selig’s blessing) saw the Red Sox franchise for what it is…an under-exploited cash bonanza. They needed to win a championship (check), solidify a regional sports network (check), and build a new park (no dice). The last is the deal-breaker. Given the woeful state of Henry’s hedge fund (down almost a billion shekels), he could really use the money. And when was the last time Larry Lucchino said no to American currency?

  • AlexCT

    you wont complain? how about when you can’t afford to see more than one game next year. ticket prices are going to get ridiculous, even more so than they are now.

  • pat

    only the already rediculously priced tickets are going astronomical. your run of the mill 25 or 30 dollar ticket is going up like 12 %-15% which is abt 3 or 4 bucks. You will still be able to go affordably dont worry.

  • JRVJ

    My one comment, which I also made on BTF when the posted this article, is that it’s unclear if the Yanks will be paying $51MM in interest payments ONLY until 2047, or if it’s $51MM in interest AND capital payments until 2047.

    Because if it’s the former, they won’t have as much money as everyone thinks, since they also have to repay the cost of capital.

  • LC

    Wow, talk about irony. Karstens with a perfect game through 6 2/3 and still going. He’s only thrown 79 pitches…50 for strikes.

    • Mark

      It definitely is nice to see a former farmhand have a shot at a perfecto, so I’m not trying to take away from it too much by saying that it likely wouldn’t be happening in the AL(only 4 Ks so far, that’s a TON of balls in play). I’d still like to see him get it. Always liked Karstens.

      • Ivan

        Flyballs as well.

  • Geno

    If the Yankees continue to develop young talent the way they have the last few years, we won’t need a huge payroll to kick some serious ass. Over the next decade, I’d guess we’ll settle in at about $130 million/year and be challenging for the world series each year.

    • JRVJ

      Why should the Yankees settle for a $130MM a year payroll?

      I mean, I can understand that it’s not that sensible to have a $200MM payroll with a bunch of long-term contracts (no flexibility) and little cheap talent coming up from the minors, but what possible benefit would there be to Yankee fans if the Yanks drop payroll that much? (other than some possible bragging rights at not being super high spenders).

      This is what I don’t get about the obsession with going young.

      Yankee fans are not going to see a reduction in ticket prices, merchandise or cable fees….

  • huuz

    the best part of the article is the end, describing the state of affairs for poor Ross–who won’t be able to afford season tickets anymore. i might be able to feel badly about that, except for the fact that Ross posts regularly at the scout board under PSUinNYC312, along with his brother (Nick) nick2slick.

    they were both lamenting the ticket price uptick last season…until they confessed that their daddy chipped in to pay for a significant fraction of their season tickets.

    gotta love good journalism. ignoring facts to make a story compelling.

  • deadrody

    Also don’t forget that bond payments come off the top for calculating the salary cap and Luxury tax. In other words, the Yankees will not be paying any of those.

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