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Let's Pick on the New York Yankees

Jesse ORourkeJan 4, 2009


Its not really ALL the Yankees fault, but they are the easiest target.

  • The Yankees had three different players whose 2008 salaries were higher than the entire Marlins Roster.
  • The Yankees payroll was 11 times higher than the Marlins.
  • The Yankees luxury tax was higher than the Marlins entire payroll
  • The 2009 Yankees infielders (1b, 2b, SS and 3b) will make more than 16 entire teams made in 2008
  • Add the 2009 Yankees starting C & SP to the infield and they will make over $100 million - more than two-thirds of the league's teams

The Yankees really are pulling away in terms of salary. As shown in the graph below, they are not just the highest paid teamโ€”they are well ahead of even the second place team.

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If the current conditions were not concerning enough, consider the fact that Yankees revenues are going to double as a result of the new stadium. Excerpts from the Crain's article include:

"The team's revenuesโ€”already the highest in the sport, at an estimated $327 million last yearโ€”are poised to double almost immediately. This quantum leap will be driven by factors ranging from higher prices for tickets and hot dogs to increased revenues from the YES Network for game telecasts. There will also be new revenue sources, such as leasing out the new stadium for concerts.

... the new revenues will be so large that Hank and Hal Steinbrenner's team... could easily push its payroll much higher than the $200 million level that for years has vastly exceeded the figure for any other team.
"

And the best part??? Read on -

"To help pay for this cash cow, the Yankees are asking the government to let the team raise as much as another $366 million in tax-exempt financing. But the Internal Revenue Service is considering a rule change that would block the request, while members of Congress are investigating why baseball's most valuable team got tax-exempt financing to begin with."


So there's no reason the Yankees can't increase their payroll to $300 or $400 million in the next few years. To help make that happen, our tax dollars are subsidizing their new stadium which is driving their dramatic increase in revenues.

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