MLB Owners’ Net Worth

The Yankee numbers, btw, are based on 2014 financial info. It’s been reported, for example, that the team alone would sell for in excess of $5B if it went up for sale. I don’t know if all the other links are equally out of date. My guess is not. Some are probably easier than others to find 2020 info as compared to others.

Beyond that, despite the value of the team, which is not liquid, it serves as a reminder that the Yankee owners are relative paupers compared to some other owners who spend a fraction of what the Yankees do. Their wealth is tied up in owning the team, and it’s split among many family members. Hal is the managing partner who in many ways is responsible for running the family “trust.” By his own words, he’s a “financial geek,” and accountant. It explains how he runs the team because, unlike his father, he can’t simply decide to spend more. It’s a family decision, and the profits are the family’s profits. That’s why the Yankees are no longer the Yankees many believe, and why they won’t on a whim run up their payroll to $300M and beyond, as I suspect the Dodgers will soon, and certainly will the Mets.

The real business genius of the Yankees was the father, George. He used no more than about $150K of his own money when he purchased the team with a group of investors, then over time bought out (or pushed out!) the rest. He then reinvested all profits back into the team on the field, which then drove up the value of the team, repairing the brand diminished by CBS’s ownership. He launched the YES Network with Goldman Sachs, YES Hospitality with the Cowboys, and in the process became one of the richest Americans not because of his prior family business, but because he owned the Yankees. He and his children are unique in that sense. As the Forbes article says, the Steinbrenner family has made more money and wealth by owning a sports team than any other family.

The lesson. If you have an actual billionaire owner, they can opt to reinvest money back into the team to increase value.. Are you listening the Dolan’s of Cleveland? They’ve done the opposite. They keep cutting back, driving fan apathy.

Published at Wed, 29 Dec 2021 17:16:18 +0000

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