It is possible that the team, itself, is losing money if you look only at gate revenues and subtract all the expenses. And it is also possible (likely?) that the team is undercharging its media affiliates for broadcasting rights, and these affiliates (also owned by the umbrella firm) are making nearly $100m/year.
Hiding team profits in the balance sheets of ancillary and auxiliary operations is an old trick. Too bad politicians still fall for it.
Forbes
· 3 years ago
Not mentioned herein is the fact the the so-called luxury payroll tax that the Yankees pay into league coffers for distribution to the lowest payroll teams will be used to fund the new stadium, i.e. stadium costs are an offset against the calculation of the payroll tax.
In other words, the Yankees are substituting the expenses of the new stadium for the expenses of the payroll tax, rather than incurring the expense of the new stadium on top of the existing cost structure.
Undoubtedly EclectEcon's comment above is correct, as the Yankees revenue advantage has always been its broadcast rights. With the rights funneled through an affiliate, the affiliate should be able to capture the profits associated with the sales of broadcast advertising.
Half Sigma
· 3 years ago
The Yankees (notice the plural) are making LOTS and LOTS of money.
What you all mean is that the owners of the residual profits made a bad deal with the employees and other stakeholders.
All Comments
It is possible that the team, itself, is losing money if you look only at gate revenues and subtract all the expenses. And it is also possible (likely?) that the team is undercharging its media affiliates for broadcasting rights, and these affiliates (also owned by the umbrella firm) are making nearly $100m/year.
Hiding team profits in the balance sheets of ancillary and auxiliary operations is an old trick. Too bad politicians still fall for it.
Not mentioned herein is the fact the the so-called luxury payroll tax that the Yankees pay into league coffers for distribution to the lowest payroll teams will be used to fund the new stadium, i.e. stadium costs are an offset against the calculation of the payroll tax.
In other words, the Yankees are substituting the expenses of the new stadium for the expenses of the payroll tax, rather than incurring the expense of the new stadium on top of the existing cost structure.
Undoubtedly EclectEcon's comment above is correct, as the Yankees revenue advantage has always been its broadcast rights. With the rights funneled through an affiliate, the affiliate should be able to capture the profits associated with the sales of broadcast advertising.
The Yankees (notice the plural) are making LOTS and LOTS of money.
What you all mean is that the owners of the residual profits made a bad deal with the employees and other stakeholders.