Fortune: YES network on the block

[novelist_wannabe]

... followed by speculation that the Yankees will be sold. Scott Boras must be unbelievably happy at this news.

http://money.cnn.com/2007/08/01/news/companies/yes_sale.fortune/index.htm?postversion=2007080206

 

[EStreetJoe]

Wow. Just wow. Will be interesting to see what happens. Can't imagine the Yankees not being owned by Steinbrenner.

 

[heyabbott]

Does Steinbrenner make the Hall of Fame?

 

[Football_Bat]

Blue font intended, novelist?

Does Steinbrenner make the Hall of Fame?

No-brainer.

 

[novelist_wannabe]

No blue font intended. If the Yankees get a windfall from the sale of YES, I'm sure Boras would see that as an open vault. 'Course, Boras sees MLB as is own personal open vault anyway ...

 

[Boom_70]

Wow. Just wow. Will be interesting to see what happens. Can't imagine the Yankees not being owned by Steinbrenner.

spnited is still getting over the shock of Henry Ford no longer owning Ford Motor Company

 

[Football_Bat]

No blue font intended. If the Yankees get a windfall from the sale of YES, I'm sure Boras would see that as an open vault. 'Course, Boras sees MLB as is own personal open vault anyway ...

I gotcha. But there is no guarantee the new owner(s) will spend like a shipbuilder from Tampa.

 

[Twoback]

Blue font intended, novelist?

Does Steinbrenner make the Hall of Fame?

No-brainer.

Steinbrenner has done much for the Yankees, much damage to baseball. Let him be in the Yankees Hall Of Fame.

 

[Boom_70]

No blue font intended. If the Yankees get a windfall from the sale of YES, I'm sure Boras would see that as an open vault. 'Course, Boras sees MLB as is own personal open vault anyway ...

I gotcha. But there is no guarantee the new owner(s) will spend like a shipbuilder from Tampa.

One of things that allows the Yankees spend is little debt service. A new owner would be taking on a lot of debt to pay for team which could impact spending on free agents.

I've not read a lot about it but its possible the Steinbrenner family could be forced to sell as capital gains tax would be cost prohibitive to pass on to airs.

 

[Football_Bat]

No blue font intended. If the Yankees get a windfall from the sale of YES, I'm sure Boras would see that as an open vault. 'Course, Boras sees MLB as is own personal open vault anyway ...

I gotcha. But there is no guarantee the new owner(s) will spend like a shipbuilder from Tampa.

One of things that allows the Yankees spend is little debt service. A new owner would be taking on a lot of debt to pay for team which could impact spending on free agents.

I've not read a lot about it but its possible the Steinbrenner family could be forced to sell as capital gains tax would be cost prohibitive to pass on to airs.

Wouldn't it be cheaper to pass the corporation on to the "airs" than cold cash?

 

[Boom_70]

No blue font intended. If the Yankees get a windfall from the sale of YES, I'm sure Boras would see that as an open vault. 'Course, Boras sees MLB as is own personal open vault anyway ...

I gotcha. But there is no guarantee the new owner(s) will spend like a shipbuilder from Tampa.

One of things that allows the Yankees spend is little debt service. A new owner would be taking on a lot of debt to pay for team which could impact spending on free agents.

I've not read a lot about it but its possible the Steinbrenner family could be forced to sell as capital gains tax would be cost prohibitive to pass on to airs.

Wouldn't it be cheaper to pass the corporation on to the "airs" than cold cash?

The inheritance tax would be same whether its stock or cash.

If they pass on as stock the aires would need cash to cover the tax based value of stock.

If the team is sold prior the cash generated could be put into non taxable trusts - making it less of tax burden for aires.

If you look back the O'malley's ran into same issue with the Dodgers.

 

[The Big Ragu]

No blue font intended. If the Yankees get a windfall from the sale of YES, I'm sure Boras would see that as an open vault. 'Course, Boras sees MLB as is own personal open vault anyway ...

I gotcha. But there is no guarantee the new owner(s) will spend like a shipbuilder from Tampa.

One of things that allows the Yankees spend is little debt service. A new owner would be taking on a lot of debt to pay for team which could impact spending on free agents.

I've not read a lot about it but its possible the Steinbrenner family could be forced to sell as capital gains tax would be cost prohibitive to pass on to airs.

You just hit the nail on the head. The family owns 36 percent of the network. If that sucker can really fetch 3 to $3.5 billion, that pays the taxes and keeps them solid for a while in terms of meeting their fixed costs. On the face of it, this wouldn't be a precursor to selling the team. It would be a way for the heirs to KEEP the team, pay off the taxes when George goes and still have boatloads of money left to outspend everyone for free agents and draft picks.

 

[heyabbott]

No blue font intended. If the Yankees get a windfall from the sale of YES, I'm sure Boras would see that as an open vault. 'Course, Boras sees MLB as is own personal open vault anyway ...

I gotcha. But there is no guarantee the new owner(s) will spend like a shipbuilder from Tampa.

One of things that allows the Yankees spend is little debt service. A new owner would be taking on a lot of debt to pay for team which could impact spending on free agents.

I've not read a lot about it but its possible the Steinbrenner family could be forced to sell as capital gains tax would be cost prohibitive to pass on to airs.

Since the Yankees are paying a huge share of the costs of the NEW Yankee Stadium, the Yankees' debt service will increase substantially. This will keep them out of the luxury tax system for a while.

 

[Boom_70]

No blue font intended. If the Yankees get a windfall from the sale of YES, I'm sure Boras would see that as an open vault. 'Course, Boras sees MLB as is own personal open vault anyway ...

I gotcha. But there is no guarantee the new owner(s) will spend like a shipbuilder from Tampa.

One of things that allows the Yankees spend is little debt service. A new owner would be taking on a lot of debt to pay for team which could impact spending on free agents.

I've not read a lot about it but its possible the Steinbrenner family could be forced to sell as capital gains tax would be cost prohibitive to pass on to airs.

Since the Yankees are paying a huge share of the costs of the NEW Yankee Stadium, the Yankees' debt service will increase substantially. This will keep them out of the luxury tax system for a while.

It will also increase overall valuation of team.

 

[Mayfly]

I say we start chipping in. Move that Boomer fund over here.

 

[Gold]

Does Steinbrenner make the Hall of Fame?

No. I generally don't like the idea of owners being in any sports Hall of Fame. On rare occasions, general managers or founders who have a huge impact, like Branch Rickey or people who build a team. Having owners in a Hall of Fame is like allowing people to buy their way into the Hall of Fame.

 

[In Exile]

That's exactly how Tom Yawkey got into the Hall of Fame - big donations. He's in - for what? - and guys like Jacob Ruppert are not.

 

[markvid]

If I'm not mistaken, his sons never really wanted to run the team anyway, but have been thrust into that role since the son-in-law became the ex son-in-law.
Wonder if that's not at the root of eventually selling?

Also, how could the network get 3 billion and the team only 1.5?

 

[Brooklyn Bridge]

If I'm not mistaken, his sons never really wanted to run the team anyway, but have been thrust into that role since the son-in-law became the ex son-in-law.
Wonder if that's not at the root of eventually selling?

Also, how could the network get 3 billion and the team only 1.5?

Those Centerstage with Michael Kay shows are worth a bundle.

 

[novelist_wannabe]

From what I've heard, his sons are interested in making their own names and not so interested in owning the Yankees, which has fed the speculation that the team would be sold. The really interesting thing is that if they're sold and the new owners cut payroll, a handful of other teams will suffer because of the decrease in shared revenue. Amazing how much impact Steinbrenner is having on the game that way.