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Yankees strategy

Osnumber1Fan

By Osnumber1Fan
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Osnumber1Fan Newbie

Osnumber1Fan

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I know a lot of people hate the way the yankees do business but atleast they try to get better, atleast they don't act complacent...even though I don't necessarily like the way the yankees go about things, if i had my way then I'd probably choose their methods over sitting around, doing nothing, and being unbelievably frugal while everyone else spends money and usually gets better...this team is a few injuries and some bad luck from being 70 - 92 in 2014, as much as it pains me to say...

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Catch 8 Veteran All-Star

Catch 8

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The Yankees operate within the rules fostered by a feckless commissioner and one the world's most powerful unions. I'd love to have an owner who "serves" the city, meaning runs the club for its fans and not as 100% for-profit business. Clearly, business elements are necessary--because things need to be financed--but I like to romanticize over an owner who runs a team almost like art or a charity (read: not for purely profit). I'd love to the see same of elected officials, but that is another place, time, location and dimension.

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hoosiers Hangout Grand Counsel

hoosiers

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I imagine there are quite a few teams that are a few injuries and bad luck away from 70-92 - remember the 2012 BoSox.

Whatever strategy you think the Yankees have other than spending $, I'd like to hear it. The NYY front office have said each offseason for the past three to five years that they intend to reduce their spending below the amount that requires a salary cap penalty - and each time they have kept on spending.

If you believe their plan was to let Robinson Cano walk via free agent, I believe you are mistaken.

The just-released Baseball America Prospect Handbook rated the NYY farm system at 18th. As the NYY write-up notes, the NYY have not drafted and developed an everyday player since 2005.

I don't think this is a front office or ownership to be jealous of in the real world where a comfortable majority of MLB teams operate.

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ShaneDawg85 Hangout Grand Counsel

ShaneDawg85

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Why is a thread about the Yankees and their operation on a sub thread about the Orioles? The Yankees are irrelevant to the Orioles, and how they operate is irrelevant to the Orioles. Wanting to be more active is one thing, but the Orioles are simply not a comparative case to the Yankees in any meaningful way to even begin to believe they could operate the way they do. End of discussion.

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Osnumber1Fan Newbie

Osnumber1Fan

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geez...is it me or are some of these replies a little bit rude and sarcastic? excuse me for being disgusted at my cheapskate team, sitting pat, remaining mediocre, while the yankees and red sox continue to improve...disagreeing is one thing, chastising people is another...

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Stotle Hangout Grand Counsel

Stotle

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I imagine there are quite a few teams that are a few injuries and bad luck away from 70-92 - remember the 2012 BoSox.

Whatever strategy you think the Yankees have other than spending $, I'd like to hear it. The NYY front office have said each offseason for the past three to five years that they intend to reduce their spending below the amount that requires a salary cap penalty - and each time they have kept on spending.

If you believe their plan was to let Robinson Cano walk via free agent, I believe you are mistaken.

The just-released Baseball America Prospect Handbook rated the NYY farm system at 18th. As the NYY write-up notes, the NYY have not drafted and developed an everyday player since 2005.

I don't think this is a front office or ownership to be jealous of in the real world where a comfortable majority of MLB teams operate.

A lot of valid points. One note -- it's not really fair to ding an entire front office for how the Yankees are won. Moreso than any other team, the Yankees need all-star names and talent on the field to be able to keep milking the cash cow. There was a study done this winter that pointed to a win being worth more in revenue to the Yankees than any other team in the game. I don't know if that FO would do well under different circumstances, but we should be wary of grading them on stuff like "drafting and developing talent", when their minor league system has really evolved into a holding company for assets to be traded.

EDIT -- We also see them ready to shatter the international amateur signing records set by Chicago/Texas last year. So they will be pumping a lot of teenage international talent into their system this year. I think it's a certainty they are way overpaying based on past market prices, so we'll see how this goes...My guess is it pushes us closer to an international draft in the near future.

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Frobby Hangout Grand Counsel

Frobby

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The Orioles should definitely not be spending like the Yankees.

They should be spending somewhere in the neighborhood of the Giants and Angels.

http://www.bloomberg.com/infographics/2013-10-23/mlb-team-values.html

I wouldn't guess what payroll should be based on the Bloomberg valuations, for at least two reasons. First, we don't know what methodology they used to value MASN, other than just putting their finger to the wind. Second, the value of a team is not necessarily directly proportional to their ability to spend. If it were, we should only be spending about

34% of what the Yankees spend, or 54% of what the Red Sox spend, if you believe Bloomberg's valuations.

By the way, I'm not saying we couldn't spend as much as the Giants or Angels. I just don't like this rationale for saying we can spend as much as they do.

From 2011:

The Angels have reached a new 20-year deal with Fox Sports worth roughly $3 billion, per Bill Shaikin of the Los Angeles Times. That windfall of $150 million per year is not only the largest in the division, but also $100 million more per season over their previous 10-year, $500 million deal.

Now, the Angels don't own their own RSN, so that isn't part of their value. But they're getting an average of $150 mm/yr for their TV rights. Meanwhile, the last figures I saw had MASN with total revenue of $160 mm. That's before expenses, before paying rights fees, before paying the Nats their share of the equity. So you tell me, which would you rather have, the MASN deal, or that 20-year deal with Fox? Would you rather have $80 mm in gate receipts like the Angels, or $56 mm like the Orioles? ($129 mm for the Giants.)

Now that I've said all that: it does seem to me that we could spend significantly more than we do. I'm not sure we could match these two teams, however.

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Frobby Hangout Grand Counsel

Frobby

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It was said that the Yankees made $1 million dollar profit last year, when it was all said and done.

So it sounds like they pour every dollar they make back into the team.

If you look at Forbes, you'll see that the Yankees basically run at break-even year after year, and frequently they have an operating loss. Yet, the valuation of their franchise keeps going up. If you buy into Forbes, the Yankees have had operating losses of about $127 mm since 2004, and yet the value of the franchise has increased by $1.5 bb in that time. http://www.forbes.com/teams/new-york-yankees/

What that tells me is that the "operating profits" listed by Forbes don't reflect economic reality.

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