The New York Yankees have a payroll of $218 million. $218 million!
Despite this, they won't even win their own division thanks to the Red Sox.
They may not even win the wild card, which seems to be reserved for Cleveland or Detroit.
What does that say about a team's fiscal and personnel management?
This isn't even my main point. What bothers me about the Yankees is they made baseball so much about money that it ruined to fun for many fans.
There are now only nine or 10 teams that actually matter in baseball. Payrolls are so high that over half the teams in MLB have no chance at all.
What about A's fans or Orioles fans or even Padres fans that have no chance at all in today's MLB? The game is rigged towards big market high payroll teams.
The Tampa Bay "Don't Call Us Devil" Rays are basically a Quadruple-A team that feeds talent they can’t afford to keep teams like the Yankees and Red Sox locked and loaded.
Sure, revenue sharing has helped a little, but that is not enough. Baseball is now a rigged card game, and the grand ol’ pastime is no longer as innocent as it used to be.
It is a business, and a big business for that matter. I hear about record attendance and $6 billion of revenue. Tell that to Marlins fans. They don’t see any of that. The only teams that feel this great boom in profit and attendance are the big boy teams like the Yankees, Red Sox, Mets, and Cubs.
This great prosperity is only for the rich teams. The rich get richer, and the poor get poorer.
Is this a great league? Or is it a rigged game favoring certain teams?
21 comments Last one added about 1 year ago — Leave a Comment
Anonymous about 1 year ago
Whose idea was it to add expansion teams at enormous cost to various taxpayers but great profit for baseball owners? Bud Selig, Bob DuPuy, et al. Where were the extra top players going to come from to feed all the teams, especially in view of the steady decrease in young Americans playing the game? Baseball in Puerto Rico would seem a logical nearby place to cultivate players. But teams prefer to go to even poorer more desperate countries to develop players. It's cheaper. The Yankees didn't go after the $150 million plus 4 players to get Santana. They turned down an offer for Carlos Beltran a few years ago at a cheaper price than the top bidder was going to pay. They've done nothing for the past 2 years but emphasize their shift to developing their own players rather than relying on over the hill free agents. Some of their bad decisions are still on the books. Why no punishment for Selig/Du Puy for failure to provide an accounting for the $100 million the Yankees have given each of the past few years in revenue sharing and luxury tax? That money is for the purpose of propping up smaller market teams, but you don't mention what exactly they're doing with it. Also, when Selig sold the Brewers, did he return the profits for his new stadium to those who invested in it, the Wisconsin taxpayer? Also, who paid by far the largest "posting" fee for Matsuzaka? Not the Yankees, but it's not a figure that gets mentioned in "payroll."
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Steve Resnick about 1 year ago
I promised myself that I would never say this, but: this is the dumbest article I have ever read. Thank you to Anonymous for adding something true and insightful.
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michael eisner about 1 year ago
Your title insinuates that this article is all about the Yankees, but you consistently mention the Yankees, Red Sox, Mets, and Cubs all in the same context. You also fail to accurately describe the revenue sharing process, which benefits the small market teams more than it does the Yankees, et al.When you write a story like this, you really need to have your facts straight
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Pinstripe Mike about 1 year ago
Maybe you should do some research before you start typing this garbage. Bud Selig recently announced 6 BILLION dollars in revenue! Here is an article from 2006, some names are different, but the idea is the same.
http://nyyu.blogspot.com/2006/01/money.html
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Michael Fitzpatrick about 1 year ago
You're on the right track with this article but it's not ONLY the Yankees that have created this problem in MLB; it's the current system in MLB that has allowed teams like the Yankees, Red Sox, Mets, etc. to basically buy themselves success.
Baseball profits come mostly from sponsorships, television and radio and the advertising that comes with it, and team licensed apparell. The Yankees, being located in the large market of New York obviously make far more money from these things thank say the Tampa Bay Devil Rays. This is imply because if you sponsor or advertise with the Yankees you reach far more people, allowing the Yankees to charge much higher prices.
The revenue sharing system is useless. Last season the Devil Rays had a payroll of $31 million. They received $33 million from revenue sharing. If the put every penny of that into their payroll, are they still supposed to compete against the Yankees $218 million payroll with a $64 million payroll? The Nationals had a payroll of $43 million last year. They received $3.9 million from revenue sharing. Are the supposed to compete against the Mets' $121 million payroll with a $47 million payroll?
The system is broken in MLB and until there is a legitimate revenue sharing system, salary cap, etc. Small Market Teams will never be consistantly successful.
As Ernie Acorsi once said - baseball is the better game, NFL is the better run game.
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michael eisner about 1 year ago
The payroll "issue" is really a non-issue. Some of the best players in all of baseball aren't even arbitration-eligible yet. And those who have been in the league long enough to test the free agent waters don't always end up with the Yankees (or the Red Sox, Mets, Dodgers or Cubs for that matter).
So the next time you try to blame all of Baseball's problems on the Yankees, you really should get yourself a Baseball Almanac and a keyboard and do the math.
A big payroll doesn't equate to a free pass to the World Series.
Just ask Jason Giambi, Mike Mussina, Carl Pavano and Hideki Matsui.
So now when the Yankees starting rotation in 2009 consists of Chien-Ming Wang, Joba Chamberlain, Ian Kennedy, Phil Hughes and a fifth-starter who more-than-likely will come from their farm system, and they win the Division, what are you going to say then?
Oh, and maybe you should also mention how the Marlins won two Championships, the first of which they "bought" big-time, high-dollar superstars such as Gary Sheffield, Charles Johnson, Kevin Brown, Pudge Rodriguez, etc. and the second with homegrown talent.
Or the Diamondbacks, who won in 2001 with the likes of Randy Johnson, Luis Gonzalez and others, whom they acquired from other teams that were looking to trim payroll.
My personal opinion is that most people who despise the Yankees are insanely jealous.
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Michael Fitzpatrick about 1 year ago
I suggest you break out the baseball almanac and calculator and see that payroll is an issue. If you had looked at any statistics you would see that in the past two decades, teams at the bottom half of team payrolls have made the post season less than 10% of the time - Payroll is not an 'issue'?
The Marlins have won two championships but as soon as their homegrown talent come up for free agency, they are no longer able to afford those players. If you think that revenue sharing or the luxury tax has stopped this problem I have two names for you - Torii Hunter and Johan Santana.
The Twins were FORCED to give up these two players. Why? Because they could not afford them. And where did those two players wind up going? The large markets of New York and Los Angles.
If you don't think there is a problem in MLB, break out the almanac and look at team valuations. The Yankees are worth $1.2 billion while the Marlins, the least valuable team, are worth $244 million. Now look at the NFL, a system that works - the most valuable team, the Cowboys are worth $1.5 Billion ($300 million more than the Yankees) while the least valuable team, the Vikings, are worth $782 million ($533 million more than the least valuable MLB Team). The NFL system of revenue sharing and salary cap works for everyone.
Of course the Yankees don't get every single high-priced free agent. The Yankees, Mets, Red Sox, etc. are just in a position to take advantage of a system that MLB has created. Blame MLB if you blame anyone.
Of course a large payroll doesn't mean a free pass to the World Series, but the old baseball almanac will tell you that 90% of the time, a large payroll means that you at least get to the postseason.
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michael eisner about 1 year ago
First of all, the Twins were not FORCED to trade Santana. They signed both Joe Mauer and Justin Morneau to long-term, high-dollar, contract extensions. They could've kept Santana and let either Mauer or Morneau go. As for Torii Hunter, I'm not a big fan. He is not a difference maker.
Secondly, the Yankees have been around for over 100 years and are worth $1.2 billion, while the Marlins, for example, have been around less than 20 and are still worth $244 million.
Comparing the Yankees net worth to that of the Marlins is like comparing apples to oranges. Try comparing the Yankees net worth to that of the Red Sox or the Cubs or the Dodgers, teams with rich histories that have been around for a long time and have past players who generations can identify with.
And if you use your NFL payroll logic, the most valuable team hasn't won in eight years and has been a first-round knockout in the Playoffs for three years running, while the least-valuable team, the Marlins, won a World Series more recently than the Yankees have.
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Michael Fitzpatrick about 1 year ago
Of course the highest payroll/most valuable team does not always win the World Series. I never said they did. The key is that the teams with the highest payrolls are 'Consistantly' successful. Again, over 90% of the time in the past 2 decades, teams in the upper tier of payrolls have been the ones to make it to the postseason. Winning the World Series is the ultimate goal, but I would say that making the playoffs the past 8 years constitutes as successful, wouldn't you?
Again, going back to the NFL logic and looking at team valuations of teams that have not been around long at all:
Texans: $1.05 Billion
Ravens: $965 Million
Titans: $922 million
Jaguars: $811 million
Still think there is not a problem with the way MLB is run?
Can you honestly say that under the current MLB system, the Kansas City Royals, Tampa Bay Devil Rays, Pittsburg Pirates, etc. have as good a chance to be successful as the Yankees, Mets, Red Sox, etc. ?
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Dan Siegel about 1 year ago
I am a New York guy (Mets fan) and although I like having had October baseball involving local teams for more than a decade, the current system of financial operations mirrors the economy more than one of competitive sports.
Your New York, LA, Chicago, and Boston teams are the Starbucks, Dunkin Donuts, and McDonads of the world. Their names and logos are well recognized, they have a large fan (client) base which leads to more financial resources, and more ability to invest in their companies (sign more players, build new stadiums, their own tv networks, etc).
Many of the rest are the Mom and Pop stores which don't have the same name recognition. Some may have a nice local following due to drafting or trading well (like having a good chef at a restaurant), but are not well followed beyond their market. Some have marginal success due to savvy management (like the Oakland A's), while you wonder how others stay in business (Royals, Rays).
If the NY, LA, Chicago, and Boston teams put some of the other teams out of business, they may have won financially, but it as nothing to do with winning on the field.
I guess where I am going with all of this is that baseball needs to look at instituting a hard cap if they want to keep more teams in business and put a better product on the field in more locations.
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michael eisner about 1 year ago
Baseball teams all make money.
Let us not fall victim to the "trickfoolery" that many of the Owners use as their excuse not to sign the relevant free agent(s). Notice I didn't say big ticket, but rather relevant.
Good GMs, coupled with money, win Championships.
The Devil Rays, for example, have drafted well and retained their young players such as Scott Kazmir and Carl Crawford by ponying up the necessary cash.
With a little luck, the Devil Rays will be in the Playoffs by 2010. Heck, they might even win a Championship by 2012.
I bet there are a good number of GMs who would love to trade their collection of high-price superstars for the Devil Rays collection of low-priced young players.
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Michael Fitzpatrick about 1 year ago
It is difficult to deny the facts.
- The Yankees payroll is nearly 90% higher than that of the Devil Rays
- Over the past two decades, teams with payrolls in the lower half of the league have made the playoffs less than 10% of the time.
- The Yankees are worth $1.25 billion more than the Marlins
If anyone can tell me that this sounds like a fair system, I'm all ears.
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Michael Fitzpatrick about 1 year ago
Sorry, messed up my math, Yankees are only worth $956 million more than the Marlins.
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Anonymous about 1 year ago
George Steinbrenner bought the Yankees for $10 million in 1973. Now they are worth over $1 billion.
Don't knock the Yankees because they have an owner that is a good businessman. That's what it really boils down to.
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Andrew Mammano about 1 year ago
Hey Martin, after you're done crying about this. Why not ask the owners of the Twins, Marlins, Royals, A's and every other team mentioned here crying poor what they've done with all of the revenue sharing money the Yankees have paid them. Put it back into their teams? Nope! For example:
Twins:
http://www.nytimes.com/2007/11/29/sports/baseball/29chass.html
"In the last five years, the Twins have received an average of $20 million a year in revenue sharing, but their payroll has not increased proportionately. The aggregate increase in those five years has been $16 million. " That's 84 million in some old guys bank account that's supposed to go to the team and instead is going into his pockets.
Royals:
http://dberri.wordpress.com/2006/06/01/does-baseball-need-a-minimum-payroll/
"(A)ccording to two sources with knowledge of the numbers, the Royals received about $55 million last year (following the 2005 season)- more than $30 million coming from a central fund that distributes money to all 30teams, and another $20 million-plus in revenue-sharing dollars given to teams with local revenues below the game's average." That's 55 million in 1 year just given to them! At least now they're starting to spend money and quit crying.
Baseball brought in over 6 billion in revenue this past year, these teams can afford to spend, but choose to instead cry wolf and pocket the money that the league hands out to them. They're like the orphan Oliver with their hands out asking for more. I'm a Yankees fan and proud, spending money does not guarantee success, look at us in the late 80's early 90's, look at the Rangers, Orioles, Dodgers, Mets.
Now, as far as the article goes, he goes on crying about how "What about A's fans or Orioles fans or even Padres fans that have no chance at all in today's MLB? The game is rigged towards big market high payroll teams." Last time I checked, Baltimore is a huge market and led the league in spending a few years ago, they're derailed because their owner Peter Angelos is an idiot who is uncapable of properly running a team or letting the people he's hired run it. The Padres had won the NL West the previous 2 years before last and if their closer Hoffman hadn't blown saves in 2 of the last 3 games they would have been in the playoffs again, and San Diego happens to be a big market and quite a nice city (sorry, live here now and know first hand). The A's made the playoffs 4 straight years a couple years ago and were always one of the best teams in the league, now they're rebuilding in order to be a top team again within a few years. So next time you want to vent because you were born in a city with a horrible owner/stupid management, don't blame the Yankees because we have a smart owner willing to put the money he makes back into his own team and to put the best product out on the field for the fans.
p.s. Go Yanks, ring #27 this year!!!!
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Michael Fitzpatrick about 1 year ago
There are definitely questions to be asked about what teams do with all of the revenue sharing money given to them. Although payrolls are obviously not the entire cost associated with running a professional baseball team, they should have to distribute a certain percentage of the revenue sharing money to their payrolls. I agree with you on that matter, there should be a rule as to how much of revenue sharing MUST be put into their payrolls.
Under the current system though, where that money goes is almost irrelevant. Last year the Devil Rays received #41 million in revenue sharing and the Nationals received $3.9 million. If every single penny of that money was put into their payrolls, the Devil Rays would still be competing against the Yankees $218 million payrolls with a $64 million dollar payroll and the nationals would still be competing against the Mets $121 million payrolls with a $43 million dollar payroll - is that parity?
The NFL puts all money from television, sponsorships and licensed apparel into a pot which is equally distributed amongst all teams. Hence the NFL has become a lot more popular than baseball because at the start of the season just about EVERY team has a chance to win the Super Bowl. There is a reason why small market teams with small payrolls have made it to the post season less than 10% of the time over the past two decades. There's a reason why this issue is unheard of in the NFL. The NFL has a system that works, MLB doesn't.
I'm not saying this is the Yankees fault. I'm a Mets fan and we are benefiting from the current situation in MLB as much as anyone right now. For the game as a whole though, MLB will have to adopt a system similar to the NFL otherwise we will continually see the same teams in the playoffs and World Series, with an occasional small market intruder who will loose all their players any way when they are eligible for free agency.
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Anonymous about 1 year ago
High five Andrew! My feelings exactly!
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Anonymous about 1 year ago
Amen, Andrew!
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Anonymous about 1 year ago
It would be an interesting scenario if we could take the management of the New York Yankees or any other "BIG PAYROLL" team and have them swap places and financial means with the management of the Twins, Royals, Brewers or Rays. Logic tells me that the management of the "BIG PAYROLL" team would prosper while the management of a smaller payroll team would shrink like a violet, along with the team.
It seems that large market teams such as the Yankees, Mets, Red Sox risk more because of the markets they are in. I would bet that their overall expenses are higher as well, excluding payroll.
It is a risk/reward world. The more you risk, the more you make - only if you are on top of your game.
The present system is like trying to keep an inverted pyramid upright at all times. Eventually it is going to tip and fall on someone. Especially if the revenue tax is exploited into selfish means by smaller market team ownerships.
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Anonymous about 1 year ago
I love people who blame the yanks for the payroll issues. While Id be a fool to disagree completely, the Rockies proved last year that money doesnt win, teams win. You can shake cash at a man all day long but the man still has to do his job the best he can, and that has been proven to not always be a lock. If your team doesnt compete and you want to blame it on the yanks then knock yourself out, but in the same breath you disrespect teams like the rockies with minimal payrolls that earn their way no matter what the dollars say. The economics of baseball are the root of the money issues. The yanks image sells, so the players expect their cut thats all, and rightfully so. Keep bashing the yanks if it soothes your soul but know this.......in some ways they keep baseball going. The yanks also make money for other teams when they sell out what are normally empty stadiums when they are on the road so take the good with the bad please.
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Conor White about 1 year ago
So is this bashing the Yankees? Or the nine or ten teams? And they're just being targeted because they play in the biggest market on the planet? The Yankees have had no problem singing that luxury tax bill the last few years, and they'll continue not to. However Mike Mussina, Jason Giambi, Bobby Abreu, Kyle Farnsworth, LaTroy Hawkins, Carl Pavano, and Andy Pettitte are all coming off the books after this season. That's approximately 80 million dollars. So lets revisit this next year.
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