Archive for News
A nice day for a parade
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Tomorrow morning at 11:00 a.m., the Yankees and New York City will celebrate the team’s long-awaited 27th World Series championship. The parade and subsequent ceremony will be a two-hour affair, starting at 11 a.m. at Broadway and Battery Place. The team will ride through the Canyon of Heroes to City Hall where Mayor Michael Bloomberg will award the Yankees keys to the city.
While fans can line the streets of Broadway for a chance to see the Yanks, the City is opening up the City Hall plaza to a limited number of fans. Beginning at 2 p.m. today, New Yorkers can register here for a chance to win tickets to the ceremony. (Ed. Note: Apparently, NYC.gov is having some problems with the registration form, and everyone is getting a note telling them their form has already been uploaded. We’ll update this when the problems are fixed.)
As the Yankees look forward to their moment in the sun, the City will be enjoying its 178th Ticker Tape parade. The most recent walk up the Canyon of Heroes came in February 2008 shortly after Giants ensured that the Patriots did not go 19-0. For Yankee fans, who haven’t had a parade in nine years, this one will feel good. “I can’t wait,” Mariano Rivera said. “It’s satisfaction. The city of New York deserves it.”
For RAB readers looking to meet up tomorrow, we’ll organize something in the comments and put it on site later tonight. The floor is open to suggestions. For those of you stuck at work tomorrow morning, the parade will be streamed live for free via MLB.com.
Jeter earns Clemente Award for Turn 2 work
Posted by: | CommentsThis news got lost in the build-up to Game 2 last night, but it’s definitely worth a look today. Major League Baseball awarded Yankee captain Derek Jeter with the Roberto Clemente Award for his community service work. The award recognizes one player each year who “combines a dedication to giving back to the community with outstanding skills on the baseball field.” Jeter established his Turn 2 Foundation when he was a rookie in 1996, and today, the program is going strong under the auspices of Derek and his sister Sharlee. It has to do with community work and giving back to the community,” Jeter said yesterday in the press conference. “I think people in our position should take advantage of it. They should try to give back as much as possible. I know I’m being awarded for this right now, but there’s a lot of players that give back to the community, and I think everyone should be commended for that.”
As part of the coverage of the award, Mark Newman from MLB.com wrote an extensive profile of Jeter and the Turn 2 Foundation. I definitely recommend that article. Newman really conveys the sense that Jeter, Sharlee and their parents are very devoted to the work they do. We see the great baseball side of Derek every day, and Major League Baseball reminded us yesterday that there is far more to him than just his play at short.
Yankee profits, World Series taxes and steak
Posted by: | CommentsIt’s a three-for-one special this afternoon on RAB. You get three mini-posts about the Yankees’ business and rolled up into one.
Yanks break even in ‘09
Generally, the New York Yankees with their gaudy $200 million payroll, don’t turn a profit. According to team officials, the club operates in the red due to the $100 million in revenue sharing and luxury tax payments it must make each year. In a way, that figure is a bit of an accounting slight of hand because it doesn’t count numerous other Yankee business ventures, including the YES Network, but that’s what the books read.
This year, though, the economics of the Yankees are different. As CNBC’s Darren Rovell reported yesterday, the Yankees are breaking even this year, and the team can thank the generosity and largesse of the City of New York for it. Reports Rovell:
But thanks to higher ticket prices, crowds filling the new Yankee Stadium seats to almost 94 percent of capacity and, perhaps most importanly, the tax shelter associated with new stadium costs that can be deducted from the team’s net revenues, sources say that the Yankees organization will make break even or perhaps even make money this year.
Sources say the savings on the tax shelter are expected to be at least $40 million.
I’ve long contended that taxpayers got a raw deal with the new Yankee Stadium. The city forewent far too much tax revenue and handed out far too many tax subsidies at a time when it could least afford it. The Yanks, though, are benefiting from it. The team has talked about maintaining or reducing payroll for 2010, but with this tax shelter, it appears as though the Yanks could add payroll next year and still come out fiscally stronger than they were a year or two ago.
World Series nets New York $40-$110 million
The New York City economy has long been sagging. Saddled with rising costs and a decreasing tax base due to the current recession, the city is in danger of running a deficit that would trigger state control of municipal finances. Perhaps, though, the World Series can alleviate some of the pain.
According to the Daily News, the World Series is very, very good for the economy. Each game brings in approximately $20 million in added revenue. From taxes on merchandise sales to bar tabs and crowded restaurants, business and the government enjoy the benefits of the Fall Classic. Even the MTA which sees 20,000 more riders per game gets in on the act.
For the Yankees and the City, the ideal outcome too would be a parade. A World Series victory would mean an additional $30 million economic activity. Here’s to No. 27.
NYY Steak roots for rain delays
Finally, we arrive at food. Crains New York spoke with David Miller, the COO of NYY Steak, about running a steak house in a stadium. While fans root for clear skies and warm weather, Miller says his restaurant benefits from rain delayed games and cool winds. “Rain and cold drive up business at the restaurant by at least 20 percent,” he said to Lisa Fickenscher.
According to Miller, the average tab at the steak house runs to around $98, and the place fills up pretty quickly once the game wraps up. It will be interesting to see how both NYY Steak and the Hard Rock Cafe do over the winter. These two establishments will keep their doors open all year long but won’t enjoy the benefits of 48,000 fans traipsing past their doors 81 times as they do during the summer.
What’s good for baseball…
Posted by: | CommentsAs all of the end-of-season numbers come out, certain trends emerge. Mostly, those trends involve the Yankees and their popularity. The team led the AL in home and road attendance, and the YES Network is more popular than ESPN in the New York City area.
Yesterday, Maury Brown at the Biz of Baseball released FOX’s top most watched games of the season, and unsurprisingly, they all involved the Yankees. Take a look:
| Date | Game | Viewers (000) | Result |
|---|---|---|---|
| April 25 | Yankees @ Red Sox | 4.086 | L 16-11 |
| August 8 | Red Sox @ Yankees | 3,962 | W 5-0 |
| April 18 | Indians @ Yankees | 3,546 | L 22-4 |
| August 22 | Yankees @ Red Sox | 3,539 | L 14-1 |
| June 13 | Mets @ Yankees | 3,498 | L 6-2 |
First, the Yanks performed spectacularly poorly on FOX during their most popular games this year. They went 1-4 and were outscored 58-23. No wonder more than a few national baseball commentators were lukewarm on the team for the playoffs. If the representative sample looks so bad, baseball writers tend to ignore the 157 other games and the 102 additional wins.
Second, the Yankees are good for baseball. Their games draw viewers to FOX. Although one of these games was the first national exhibition at the new stadium, the rest were just your run-of-the-mill midseason games against a few archrivals. That popularity means more money for baseball.
For Yankee fans, this news means more Tim McCarver and Joe Buck and more weekend Boston/New York series. TV executives and the scheduling gurus recognize that these series are great for baseball. People are taken in by the games, and generally — although not as much this year — the baseball is crisp and compelling. Analysts and fans of other teams might like to complain, but in the end, the truth is simple: The Yankees are good for baseball. Just look at the numbers.
YES more popular than ESPN in the Big Apple
Posted by: | CommentsI don’t really buy into the argument that ESPN is an extension of Red Sox Nation, but among Yankee fans those sentiments run high. To combat that, we enjoy our own version of the baseball world as seen through Yankee-colored glasses. The YES Network — a RAB partner — features Yankee baseball and a whole slew of programming designed to promote the New York Yankees image and brand.
In the largest media market in the biggest city in the country with some of the game’s most devoted fans, that network is reaping the benefits. According to ratings numbers released this week, the Yankees Entertainment and Sports Network is the most watched regional sports network in the nation, and within the New York Designated Market Area, it has been more popular than ESPN over the first three quarters of 2009.
For the most part, YES’ success has come from Yankee telecasts. Ratings for games were up 9.5 percent over the network’s 2008 numbers. They remain a shade below the 2007 figures for all-time best. According to Nielsen ratings data, approximately 101,000 households watch YES during prime time, making it the most-watched team-centric network in the nation.
Interestingly enough, YES’ broadcast of the post-game show saw a significant increase in ratings this year as well. The analysis and locker room interviews witnessed a seven percent boost in viewership, and I believe this stems from a more comprehensive post-game show. With Kim Jones in the locker room, Yankee fans get player and manager reaction minutes after the game ends. We no longer have to wait for newspapers to release stories, and instead, we can hear thoughts straight for the horses’ mouths.
These numbers are of course good news for YES and would only increase if, say, the River Ave. Blues TV show became a reality. (Right, guys? You would all watch of course.) Seriously, though, if YES were to increase its original programming to feature more news and analysis programs instead of showcasing the 800th rerun of Reggie Jackson’s Yankeeography, the network could do even better. For the Yanks’ TV cash cow, being at the top is satisfying, but in my opinion, the Network would still tap into an even larger audience.
2009 AL East Champions
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Yanks face age discrimination suit
Posted by: | CommentsThis little tidbit of news didn’t garner much attention on Friday afternoon, but the Yankees have been sued for age discrimination. A group of 13 waiters, aged 66 to 80, have claimed that the Yanks fired them when they closed the old Yankee Stadium and hired younger — and cheaper — workers instead. Supposedly, a Yankee official said to one of the waiters when firing them, “What could someone 73 years old offer the Yankees?” The waiters are asking for $3 million, and the team is, of course, denying the allegations.
Yanks to start, end 2010 in Boston
Posted by: | CommentsWhile the Yankees still have 17 games left to play this season, Major League Baseball has released the master schedule for 2010. Already, the news wires are abuzz with Yankee news as the Bombers begin and end their 2010 campaign in Boston. As the AP reports, it is just the fifth time in 50 years that the two clubs bookend the season in a rivalry face-off.
I have to question the wisdom of an Opening Day match-up between the two archrivals. While the game is currently set for Monday, April 5, ESPN is making noises of a switch. The Worldwide Leader wants their ratings bonanza for Opening Night, and the network could force a move of that game to Sunday night. At 8 p.m. on April 4, 2009, it was 44 degrees outside in Boston. Furthermore, from a business perspective, Opening Day doesn’t need the extra boost of a Yankees/Red Sox series, and burning a three-game set early on means reduced ratings in May or June.
After Boston, the Yanks head to Tampa for three games before hosting the Angels in the home opener on April 13. For the first month, the Yanks play just seven games in the Bronx and 15 on the road. With a West Coast swing to Anaheim and Oakland, it will be a tough month indeed.
In May, the Yanks again journey up to Boston for a weekend series in Fenway (May 7-9), and then Boston returns the favor with a two-game set on May 17 and 18. They play the Mets at Citi Field from May 21-23 before making their first trip to the new outdoor stadium in Minnesota on May 25. By then, it should be warm enough to play baseball without a roof in Minneapolis.
In June, Interleague Play again dominates. The Yanks play the Astros, Phillies and Mets at home while journeying to Arizona and Los Angeles. Joe Torre’s first trip to the new Yankee Stadium, if it doesn’t arrive next month, won’t come in 2010, but that June 25-27 series will make his first regular season games against his old team. The Sox meanwhile play the Rockies and Giants on the road. I’d rather play the Astros and D-backs.
In July, the Yanks suffer through their third West Coast swing of the season and second in the span of three weeks. Before the All Star Break, they play Oakland and Seattle. As a reward, though, the team gets a fourth day off for the All Star Break.
The dog days of August are highlighted by a four-game set with the Red Sox from August 6-9. The Yanks play 16 home games that month and another 16 in September. Considering how the Yanks have played this summer at home, I’ll take that benefit during a potential stretch drive. The Yankees end their home schedule with a weekend series against the Red Sox (Sept. 24-26) before a road trip to Toronto and Boston. There will be no mid-September cross-country journeys in 2010, and the Yanks wrap up the West Coast part of the season before the All Star Break. Sounds good to me.
Click here for the full 2010 preliminary schedule. The link opens in a new window. In the non-baseball realm, The Times reports that Yankee Stadium will host an NCAA bowl game in 2010. The Yankee Bowl would pit the 7th place Big 12 team against either the 3rd or 4th place Big East team.
The Gutkowski v. Steinbrenner complaint
Posted by: | CommentsOver the weekend, I reported on a lawsuit filed against George Steinbrenner. Bob Gutkowski, formerly an executive at the MSG Network, has sued the Boss for damages up to around $43 million. He claims that George stole the YES Network idea from him and never delivered a promised job as head of the network or the compensation that would come with it.
Today, I secured a copy of the complaint for all of the RAB legal eagles to read. I haven’t had a chance to peruse it yet and probably won’t until later tonight. You can read it below in the Scribd embed or grab the PDF here. I’ll try to offer up some analysis over the next few days.
Steinbrenner sued over YES idea
Posted by: | CommentsBy many accounts, the YES Network has been one of the greatest Yankee success stories of the last ten years (and I’m not just saying that because of our affiliation with them). The regional sports network has garnered high ratings for its games and has allowed the team to capture even more revenue. With in-market streaming deals now in place, the team and the network stand to gain even more, and some estimates value the YES Network at $3 billion.
Now, though, a former MSG head is claiming that George Steinbrenner and the Yankees stole the idea for a team-focused RSN from him, and after years of haggling with the team, Bob Gutkowski filed a $23 million lawsuit in federal court yesterday for fraud and breach of contract. While the court filing isn’t yet available online, Richard Sandomir has more:
Bob Gutkowski, who as president of the MSG Network negotiated a 12-year, $493.5 million deal in 1988 with the Yankees and is the plaintiff in the lawsuit, said that he had several meetings with Steinbrenner, starting in 1996, to discuss the idea of a Yankees network. He said he also made a presentation in 1998 to Steinbrenner and other Yankees executives that laid out how to build a regional sports network controlled by the team.
At one meeting in 1997, according to the lawsuit, Steinbrenner said he wanted to use the threat of starting a network to get $1 billion for a 10-year extension from MSG.
“At no point did Steinbrenner, regarded for his business acumen, conceive of creating a Yankees television network,” Gutkowski said in his papers. “The idea and plan was solely Mr. Gutkowski’s.” He added that Steinbrenner “knowingly and continuously misrepresented” an oral agreement that Gutkowski would run or be part of the network.
Interestingly, as Sandomir points out, Gutkowski has named Steinbrenner as the sole defendant in the case. According to Newsday’s Neil Best, Gutkowski claims that Steinbrenner made a personal promise to him regarding the network. It is doubtful that Steinbrenner will be able to testify in his behalf, and the Yankees may instead have to rely upon Lonn Trost and Randy Levine for statements in court.
The Yankees termed the suit “patently false and frivolous.” Said Howard Rubenstein, “Mr. Gutkowski had nothing to do with the initiation of the idea for an R.S.N. for the New York Yankees, nor did he have any role in the establishment or the success of the YES Network.”
In his court filings, Gutkowski alleges that Steinbrenner promised him the reins to the new RSN. While a consulting contract materialized for Gutkowski, he alleges that he did not get the position promised to him and that his suggestions were ignored.
Said the plaintiff in a statement, “I did everything possible to avoid having to sue George Steinbrenner. I have repeatedly spoken with his people and asked for a meeting directly with George. Unfortunately, their position was to stall me, string me along and, in the end, block the meeting. Their actions made it clear that the only way for me to be fairly compensated for the idea that I brought to George and the work that I performed was to sue him.”
For the legal eagles among us, I’ll try to get the filing posted as soon as it’s available. This is one case definitely worth watching.
