News Corp officially purchases stake in YES

We already knew that media giant News Corp was going to buy a share of the YES Network from Goldman Sachs, but today we got the details, and they’re fairly stunning. News Corp will obtain a 49 percent share of YES Network, with the network’s various investors including the Yankees reducing their ownership share, and News Corp will have the option to increase that share a w hopping 80%, which would presumably entail the Yankees further reducing their stock in the $3.8 billion firm. As part of the transaction, the Yankees have committed to keeping their television broadcasting rights with YES through the 2042 season, with annually increasing payments from YES to the Yankees that will start at $85 million this coming season and reach a staggering $350 million in the final year of the agreement.

Frankly, I find this all pretty hard to process in the moment, so it’s hard to write a “what does it all mean” kind of post at the moment, but the surface level financials are pretty amazing, and it underscores how much money the Yankees’ are really making…that won’t be going into the payroll anytime soon. Now, back to saying nasty things about Jeffrey Loria.

Born in Southwestern Ohio and currently residing on the Chesapeake Bay, Brien is a former editor-in-chief of IIATMS who now spends most of his time sitting on his deck watching his tomatoes ripen and consuming far more MLB Network programming than is safe for one's health or sanity.

About Brien Jackson

Born in Southwestern Ohio and currently residing on the Chesapeake Bay, Brien is a former editor-in-chief of IIATMS who now spends most of his time sitting on his deck watching his tomatoes ripen and consuming far more MLB Network programming than is safe for one's health or sanity.

31 thoughts on “News Corp officially purchases stake in YES

  1. Brien, those monies that you are talking about in your article. They do NOT include what the Yankees receive currently as a 34% owner of the network am I correct.? So it's those monies PLUS the ownership share of the profits.

  2. And they are going with the $189 million budget why?

    I'm not one of these, "If George owned the Team" Guys. I grew up in the 1980's and saw what George did, BUT, that being said, the Yankees operating like a small-market team is getting tired.

    I understand $189 million is a lot of money, but, most of that is sunk costs already and they need to continually invest in the product and continually improve the product.

    At this point, it seems the Yankees just print money – it would be nice to see them re-invest some of that money in the team this winter.

  3. The report indicates something like 4-7% annual increases in the TV rights fee, which may or may not keep up with inflation, but which bears no relationship to the rate of increase we're seeing in these rights fees on the open market. Also keep in mind that if that 15-20% ownership stake does end up generating a nice revenue stream, then News Corp can exercise its option to take an 80% share of YES, thus reducing the Yankees' ownership stake to around 7%. That option is the rough equivalent of the opt-out clauses Soriano negotiated in his contract with the Yankees.

  4. why are we not talking about the elephant in the room here..

    the fact that NEWSCORP, one of the most slimy "conglomerates" out there may own 80%of yes sometime soon, and i'm conservative and feel that way about newscorp, imagine all the liberal fans if that guy who shall remain nameless is running the yankees???

    why couldn't george steinbrenner have one competent son who actually gives a crap about baseball and his fanbase/customers… was that too much to ask?

  5. I have to say the speculation here about Murdoch/News Corporation buying the Yankees at some time in the foreseeable future is unbelievable. There is absolutely nothing that has happened to warrant or justify that speculation in my opinion. Fox owns numerous Regional Sports Networks across the country that pay for the rights to broadcast sports teams games. For Example: Fox Sports Southwest just recently negotiated a deal with the Texas Rangers. The Rangers aren't being sold to FOX or News Corp. FOX Sports is talks with the Dodgers on a new TV deal. The Dodgers aren't being sold to the FOX or News Corp. and the list goes on. For well intentioned fans to speculated or anything else that the sale of YESNetwork is anything other then News Corp/FOX/Murdoch foray into the largest sports media market in the US is folly. If anyone still has concerns google "News Corporation" and check out Wikipedia's list of their holdings. If that doesn't convince you that their interest is in the media markets and not sports teams or the Yankees nothing will.
    With that I'm done here for the night. I want to wish everyone a very Happy and Safe Thanksgiving. If you're driving, please don't drink.