New York Yankees and Economics

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Looking at the way that the New York Yankees make their money according to the New York News & Features, the best way to go about success economically is to buy a related business to the team. In 2004 the Yankees became the sole owners of the Yes Network television broadcasting, bringing in 60 million dollars in 2009. Owning a related company allows the team to bring in one hundred percent of the profit instead of being contracted by unowned television companies like the Chicago Cubs and WGN Sports, the Baltimore Orioles and Fox Sports Baltimore, and the Chicago White Socks with WGN Sports also. Other keys that the Yankees use in their path to success is to run a tight ship meaning that the staff in New York is 200 people including the players in the Staten Island Farm team and the staff members should be contracted out. Cutting the number of employees keeps cost down and keeps employees motivated because with a small staff employees can be replaced. anytime. Also a small staff gets better pay because the revenue is high and there are not as many people to share the profits with. All of these simple strategies keep cost down creating more revenue to perform in the community, acquire better players, and stadium upgrades. As stated before, four out of the last five teams have been in the top ten in terms of revenue and most of the follow the steps in the above paragraph. Referring to the operations of the New York Yankees as a model, their methods free up money to upgrade and rebuild stadiums such as the New York Yankees new Yankee Stadium, the St. Louis Cardinals new Bush Stadium, and Philadelphia Phillies Citizen bank Park. Such revenue also creates room for renovations like the Chicago White sox renovation of Comiskey Park (II) now named U.S. Cellular Field. Revenues also go into stadium maintenance such as rolling the field, making sure the field is level and routine maintenance.

Economics in baseball also come into effect with the GM or General...
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