Deadline – News Corp’s impending purchase of up to a 49% stake in the New York Yankees’ YES Network values the regional sports service at $3 billion, the New York Times reports. That’s lower than the $4 billion sellers had suggested YES was worth. News Corp prefers 100% ownership of its regional networks but even a minority stake in YES would be lucrative. YES is the most valuable of the regional sports networks, and the Times said the deal would include a route for News Corp to gain control of YES within 3 to 5 years but at a higher network valuation of $3.5 billion. The price for a stake in YES further illustrates the soaring figures paid for sports. The Yankees own 34% of YES; another 40% is owned by Goldman Sachs and Providence Equity, and the remainder is held by former owners of the Nets through an entity known as Community Youth Organization. The Yankees and News Corp have a family connection, the Times noted. The late George Steinbrenner and Rupert Murdoch were friendly and James Murdoch sits on the board of the team’s holding company Yankee Global Enterprises. YES also televises Nets basketball games.
And the rich get richer. Hey Cashman maybe now you can afford that Arod contract!
Christ almighty there is so much money in these regional sports networks its absolutely absurd. If you think baseball contracts are out of control now just wait until teams really start cashing in on the value of these networks like the Yankees here. We saw the impact last year when the Angels went out and dropped like $300 mil after signing their $3 billion deal. Pretty soon nobody is gonna give a fuck about owning an actual team. They just need something to put on television so they can sell their regional network. Its just like a little toy thats a means to an end. Its only a matter of time before like Ryan Seacrest owns a baseball team just to air their games on E! or some shit. Completely bananas.
Anyway, I haven’t really read many articles that specify what this means for the Yankees and what they intend to do from here. Just sounds like theres a track set up for News Corp to eventually own like 80% of the channel and turn it into more than just a Yankees network. But in the short run I guess the Yankees just have a shit ton more money now? They don’t relinquish their controlling stake and they get an infusion of cash? Seems like a pretty great fucking idea to me. Why can’t the Wilpons do something like this? Between Mets baseball and 23 hours a day of Beer Money, SNY has gotta be worth like at least 60 grand.