Major League
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Major League
Major League
How did the New York Yankees become the richest baseball club in Major League Baseball?
The New York Yankees are the richest baseball club in Major League Baseball and possibly the richest ball club in the world. The team is world millions of dollars and they pay the players very well and are currently building a New Yankee Stadium costing millions and millions of dollars.
How did the New York Yankees become the richest baseball club in Major League Baseball and what is their success to being financally secured ball club?
Being located in New York City certainly helps, but historically the Yankees have made some fantastic business decisons over the years. Steinbrenner bought the team for $10 million from CBS in 1973. The team is now valued at 1.2 billion dollars.
The Yankees generate more income than any other sports franchise in America. Here are the figures for 2006:
REVENUE:
Ticket sales = $117 million (4.178 million tickets @ $28 avg)
YES Network TV/radio rights = $60 million
Major League TV and licensing = $30 million
Concessions = $10 million
Sponsorships and advertising = $30 million
Premium seating = $27 million
Local radio = $13 million
Catering = $5 million
Other = $10 million
TOTAL = $302 million
OPERATING COSTS:
Player salaries = $195 million
Major League revenue-sharing fees = $70 million
Major League luxury tax = $25 million
Stadium operations = $20 million
Travel and training = $20 million
TOTAL = $330 million
2006 TOTAL = $28 million loss
HOW IT WORKS:
Yankees management plays two games. The first is the day-to-day running of the team. Fifty-one thousand fans pay an average of $28 to come to 81 home games, where they suck down sodas and hot dogs for $4.50 each, generating half the team’s sales. The other half comes from $140 million in ad deals and media rights. The largest expense is player costs, which run about $200 million a year, and then there’s league revenue sharing and the costs of flying the team around the country. But eking out a marginal profit on operations is hardly the aim. The bigger game they’re playing is maximizing the value of the team itself. No need to worry about last year’s $28 million loss, when its value rose $200 million, to $1.2 billion. “Like a piece of property in New York City, it’s really not an annual profit-and-loss-based business,” says Joseph Perello, former vice-president of business development. The Yankees—read Steinbrenner—also own more than a third of the YES network, which broadcasts Yankees games to 8.7 million subscribers. The network’s revenues top a quarter billion and its profit margin is 60 percent. Though a completely separate business from the Yankees, YES’s value is directly tied to how much interest people have in the team, making a $200 million payroll a very easy decision.
By purchasing a related business - a cable network like YES - they rake in ever more profits. A very smart move by Steinbrenner and staff.
They also run a tight ship - the Yankees staff is a mere 200 in New York, including the players and the Staten Island farm team. Most stadium staffers are contracted out.
More good news: The Yankees will get a break on their revenue sharing bill when they open their $800 million team-financed new stadium in 2009. Teams can deduct stadium operations expenses including construction costs from the revenues eligible to be shared with low revenue teams.
They are called the "Evil Empire" by other clubs (usually Boston) but they are the model franchise that all other MLB teams should copy.
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Majority of television viewers in America watch NFL super bowl. The day on which this game is played is considered as the national holiday in America and is also known as Super Bowl Sunday. This day is also the second largest food consumption day in America. The popularity of NFL championships can be compared to Thanksgiving Day. Major television networks of America compete to get the exclusive broadcast rights to broadcast this game.
Investing in advertising is very costly in this game because if a company gets only a 30 seconds of commercial slot during the game then the cost if one million. So for this reason companies show their most expensive advertisement for this broadcast. The reason of so expensive commercial slots is that if an advertisement is shown during the game then it gets great exposure and a lot can be made from it.
The NFL (National Football League) and AFL (American Football League) were once the rival leagues in America. Both these leagues formed a merger in an agreement. In the agreement, it was agreed that the champion teams of both the leagues would play in the championship game of AFL and NFL until this merger continued. Each league became conference after forming of merger and the conference champions played in the NFL Super Bowl game. The day of 15th January in the year 1967 was the day when the NFL Super Bowl was played for the first time in America.
The name Super Bowl was given by Lamar hunt who was the founder member of the AFL (American Football League). The name Super Bowl came in his mind after seeing his children busy in playing with the super ball. Each game is separately identified in Super Bowl. To identify each Super Bowl game, roman numerals are used. In the year 1967, Super Bowl I which was the first game of NFL Super Bowl was played and in the year 2010, Super Bowl XLIV which will be the next game of NFL Super Bowl will be played.
This time the NFL Super Bowl will be played in Landshark stadium of Miami. In the past years, the Landshark stadium has organized many football events in which four were Super Bowls and two were World Series. In 2010, Landshark stadium will be hosting the NFL Super Bowl for the fifth time and this Super Bowl event will be the ninth for the whole Miami area.
Super Bowl XLIV event will officially begin on February 7, 2010. Super Bowl XLIV will make Florida a busy state because of the fans coming to the Landshark stadium to watch this game live. The hotels, restaurants and inns are all prepared to entertain fans and tourists. The Landshark stadium has also been prepared for this day with the seating capacity of atleast 65,000 fans. Cheap Super Bowl XLIV tickets are now on sale for the game to be held on February 7, 2010 in Miami Florida for providing promo code " 44 " at checkout on TicketsGenie.com to get 5% off your Super Bowl 44 tickets.
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