Must be the money

Davidoff: Who needs Pettitte?
Saturday night open thread: No Lowe

With this new stadium on tap, we hear a lot of talk about reduced revenue sharing and higher revenue streams, but a lot of people — including me — don’t quite understand how baseball’s complicated tax structure works. Enter Richard Sandomir. In a fairly comprehensive and comprehendable article earlier this week, The Times sports business writer explored the how’s and why’s of the Yanks’ revenue sources. Basically, the new stadium allows the team more opportunity to draw in more money while deducting from their revenue payments and the YES Network’s subscriber fees keeps the team relatively insulated from the projected decreases in advertising money due to the economy. Makes sense to me.

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Davidoff: Who needs Pettitte?
Saturday night open thread: No Lowe
  • Sweet Dick Willie

    I thought that was the primary purpose behind the new stadium – to reduce the revenue sharing payments that the Yankees were required to make. No?

    • http://www.riveraveblues.com Ben K.

      Nah. That’s an incidental benefit. They wanted to build the new stadium because it allows them to capture more revenue, not because it allows them to make lower revenue sharing payments.

  • Sweet Dick Willie

    They wanted to build the new stadium because it allows them to capture more revenue, not because it allows them to make lower revenue sharing payments.

    Correct me if I’m wrong, but doesn’t lowering your revenue sharing payment allow you to keep more revenue?

    I’m pretty sure I read (please don’t ask me for a link) when the new stadium was first being discussed that George was livid about his revenue sharing payments (he was the only owner to vote against the proposal) and wanted to use the system against the other owners. But I could be wrong.

    • Rich

      Sweet, you’re right it allows you to keep more revenue but you’re mistaken that it’s the primary reason for building the stadium.

      • pat

        if its not the primary reason then id like to know what is

        • http://www.riveraveblues.com Ben K.

          Wait a sec. You thought that sinking nearly $2 billion into a stadium just so they could temporarily get out of revenue sharing payments was the impetus behind the new stadium?

          Wow. No wonder there was no real opposition to the stadium plan.

          This was all about building something with luxury suites and state-of-the-art amenities because the Yanks felt they weren’t capturing enough revenue from the 4 million+ fans who keep trekking up to the Bronx each season. The revenue sharing payments are completely tangential and were not at all a driving force behind the new stadium.

          • The Honorable Congressman Mondesi

            Poppycock! George hates revenue sharing. They’ll build another one when the revenue sharing discounts from this stadium end.

          • pat

            i misread what he was getting at when he said it’s the primary reason for building the stadium.. Thought he was referring to all the stuff you just said, basically making boatloads of money.

        • radnom

          What?!?

          How about the long term financial benefits of having a new, modern stadium, with expensive restaurants and expanded luxury boxes?

          There is now way a 2-3 year break in revenue sharing is the main reason for building the new stadium. The money saved from that is peanuts compared to the cost of construction and the revenue that will be generated from the stadium.

  • radnom

    This really was the perfect storm.
    With the downturned economy affecting other team’s spending, an insanely strong FA class (check out last years, holy crap the Yankees would be in trouble if that was all that was available this year) and a whole ton of money coming off the books the timing really couldn’t have worked out better.

    Ty Wiggington was not tendered.
    How about throwing him in the 1B/LF mix?

    • JRVJ

      Well, I’d have rather Mussina had not retired and that the Yanks thus would not have signed Burnett……

  • Joey H

    Hey What is there to know about Dellin Betances?

    • pat

      He is The Future.
      20 years old
      6’8
      98 mph gas sits 93, 94 consistently
      power knuckle curve
      plus change
      Told teams not to draft him because he would only play for the yankees.

      • ceciguante

        i’m hearing betances, still being (understandably) very raw and with a big frame, isn’t projected to reach the bigs until 2011 or 2012. isn’t he starting this year in high A? where is mike a. when you need him?

        • pat

          Yeah very raw, but was showing better control at the end of the season. He will most likely be starting in tampa with brackman bleich and a few other studs.

  • Sweet Dick Willie

    Ty Wiggington was not tendered.
    How about throwing him in the 1B/LF mix?

    He’s horrible in LF. I wouldn’t mind him as a utility infielder, but he can probably land a starting gig somewhere.

  • ceciguante

    good article, ben. i wish more fans would read this stuff to understand some of the MLB financial dynamics. i took a course on sports law that was fascinating, covered MLB history from the early days to present era. you should look into that (but i bet you already have).

    • http://www.riveraveblues.com Ben K.

      As long as I can get in, I’d like to take some sports law classes. I have a feeling those are rather competitive.