The Yankees’ expected signing of the massive left-handed pitcher C. C. Sabathia to a gigantic contract is the latest manifestation of the team’s muscular business model.
The Yankees generate $400 million or more in revenues and spend $200 million in player salaries.
The team owns 38 percent of the YES Network, which pays the Yankees at least $70 million a year, and can receive still more cash from its cut of the channel’s profits.
It is opening a new ballpark in the Bronx in April, only months after attracting a team-record 4.3 million fans for the final season at the old Yankee Stadium.
The $1.3 billion stadium is designed to generate more revenue than the old one did, even as the recession worsens. But here’s a sometimes-forgotten wrinkle that helps the Yankees rationalize contracts like Sabathia’s $161 million over seven years: Read more..
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