
Forbes magazine and ESPN did a study on how much MLB benefits from the Yankees. Here’s what they found:
But the biggest story is the effect revenue sharing is having on the league’s economic landscape. Most of the money comes courtesy of the New York Yankees, which paid a record $77 million toward baseball’s revenue sharing system. The Boston Red Sox, baseball’s No. 2 revenue sharer, paid only $51 million. Such generosity by Yankees owner George Steinbrenner, required by the league’s rule that teams pay 34 percent of their net local revenue to help make poorer teams more competitive, is the reason why the Oakland Athletics, Minnesota Twins and Kansas City Royals increased in value by more than 20 percent.
Revenue sharing also had a profound impact on operating income. The Yankees and the Red Sox lost $50 million and $18.5 million, respectively, before interest, income taxes and depreciation. By not using their subsidies to boost player payroll (which was the intent of revenue sharing), the Pittsburgh Pirates, Royals and Twins each earned more than $20 million.
But the league’s reliance on Steinbrenner’s Yankees goes far beyond revenue sharing. For example, a visit by the Yankees can increase a home team’s ticket sales by as much as 25 percent. And the Yankees account for 27 percent of all league merchandise sales, the profits of which get shared equally throughout the league to the tune of more than $3 million per franchise. In effect, much of the league operates as subsidiaries of the Bronx Bombers.
So many Yankee haters I know say, “[whaaaa]The Yankees spend, spend, spend because they’re so rich. Well look how much the Yankees pay to line the pockets of the A’s, Twins and Royals. And what do those teams do with Yankee money? Do they go out and get new free agents? Of course not. They pocket the money and say, “Thanks Yanks.” At least George spends the money he makes on the Yankees so they’ll be better. Yankee leeches!

Sam, are you doing a post similar to this on the WCCC forum? I can imagine the response from the ruffians in the peanut gallery there …
Posted by TimK | April 21, 2006, 8:14 amHaha…seriously, those ruffians. I might just do that Tim. And watch and see the results. The ruffians will come out of the woodwork.
Posted by admin | April 21, 2006, 9:51 amYeah, guys (and gals) who have been silent for weeks will rise up and pontificate with vigor.
Ohhhh, see you have Bridges/Trusting in your sidebar … maybe you should start a reading group …
Posted by TimK | April 21, 2006, 9:54 amHaha, now that is a great book to read together.
Posted by admin | April 21, 2006, 10:30 am