Update: HOLLIDAY A CARD 7yr/120 million, p178

[skmsw]

I like to think of it this way: there are 7 teams that spend less money than the difference between the NYY payroll and the next highest payroll.

Here's how I think of it.

When the Yankees fly at a 25-man roster of $220mm -- which they have -- they can afford:

* three players averaging $22.5mm
* three more players averaging $15mm
* three more averaging $10mm
* eleven more players averaging $5.5mm
* the last five players on the 25-man roster -- the back-up catcher, utility infielders, the very end of their bench and the guys mopping up the pen -- making $2mm each

-- and then still have $7mm left to be paying waived players, picking up the salary of traded vets, etc.

[Maclowery]

Wow, that's pretty depressing.

[Socnorb11]

I like to think of it this way: there are 7 teams that spend less money than the difference between the NYY payroll and the next highest payroll.

Here's how I think of it.

When the Yankees fly at a 25-man roster of $220mm -- which they have -- they can afford:

* three players averaging $22.5mm
* three more players averaging $15mm
* three more averaging $10mm
* eleven more players averaging $5.5mm
* the last five players on the 25-man roster -- the back-up catcher, utility infielders, the very end of their bench and the guys mopping up the pen -- making $2mm each

-- and then still have $7mm left to be paying waived players, picking up the salary of traded vets, etc.

Which is why winning a World Series is a pretty "meh" accomplishment for them, in my opinion.

[Fan_In_NY]

They also have been doing a great job at rotating these contracts. Every year they clear about 20M-30M of older higher priced players who were worth the salary when they were signed, but no longer effective. They replace them with the top free agents at 4-7 year contracts who produce their at their salary for the first 75% of the contract, and then get relegated to part-time and then their salary comes off the books and they fill the hole with the next top player. Rinse and Repeat. As long as they keep picking the correct top of the line free agent they will be dominant.

Last year they cleared Giambi, Pavano, and Abreu (~40M) and took that money and spent it on CC, Burnett, and Teixeira. relatively zero added cost and huge increase in production.
This offseason they will clear Damon, Matsui, Wang, and Nady (~35M) they can take that money and spend it on Holliday and Lackey the top hitter and pitcher at zero added cost and huge increase in production.
And round and round they go, and eventually it will come time to replace Jeter and A-Rod and they will be able to sign again the top priced free agents. There is really little need for them to develop prospects. A $220M payroll is very sustainable as the cost of the top free agents really hasnt increased much recently.

There is really very little reason for them to ever go this long without a World Series unless they can't replace Mariano effectively when he retires, baseball ceases to exist, or there is a salary cap.

[Socnorb11]

They also have been doing a great job at rotating these contracts. Every year they clear about 20M-30M of older higher priced players who were worth the salary when they were signed, but no longer effective. They replace them with the top free agents at 4-7 year contracts who produce their at their salary for the first 75% of the contract, and then get relegated to part-time and then their salary comes off the books and they fill the hole with the next top player. Rinse and Repeat. As long as they keep picking the correct top of the line free agent they will be dominant.

Last year they cleared Giambi, Pavano, and Abreu (~40M) and took that money and spent it on CC, Burnett, and Teixeira. relatively zero added cost and huge increase in production.
This offseason they will clear Damon, Matsui, Wang, and Nady (~35M) they can take that money and spend it on Holliday and Lackey the top hitter and pitcher at zero added cost and huge increase in production.
And round and round they go, and eventually it will come time to replace Jeter and A-Rod and they will be able to sign again the top priced free agents. There is really little need for them to develop prospects. A $220M payroll is very sustainable as the cost of the top free agents really hasnt increased much recently.

Well yeah. But that's what every team in baseball is doing, really. The difference is that teams like the Cardinals are rotating 5 to 8 million dollar players, while the Yankees are rotating 15 to 20 million dollar players.

[fanforever]

I like to think of it this way: there are 7 teams that spend less money than the difference between the NYY payroll and the next highest payroll.

Here's how I think of it.

When the Yankees fly at a 25-man roster of $220mm -- which they have -- they can afford:

* three players averaging $22.5mm
* three more players averaging $15mm
* three more averaging $10mm
* eleven more players averaging $5.5mm
* the last five players on the 25-man roster -- the back-up catcher, utility infielders, the very end of their bench and the guys mopping up the pen -- making $2mm each

-- and then still have $7mm left to be paying waived players, picking up the salary of traded vets, etc.

and how much of that 220 milllion is from TV revenue (YES NETWORK)?...my guess...a small fraction

[Fan_In_NY]

I like to think of it this way: there are 7 teams that spend less money than the difference between the NYY payroll and the next highest payroll.

Here's how I think of it.

When the Yankees fly at a 25-man roster of $220mm -- which they have -- they can afford:

* three players averaging $22.5mm
* three more players averaging $15mm
* three more averaging $10mm
* eleven more players averaging $5.5mm
* the last five players on the 25-man roster -- the back-up catcher, utility infielders, the very end of their bench and the guys mopping up the pen -- making $2mm each

-- and then still have $7mm left to be paying waived players, picking up the salary of traded vets, etc.

and how much of that 220 milllion is from TV revenue (YES NETWORK)?...my guess...a small fraction

You underestimate the revenue of a TV network...it pulls in more in revenue alone than some entire teams.

From an article in 2007

It has sold advertising aggressively on Yankees games and other Yankees-oriented programming. Its revenues exceed $300 million, and its cash flow, a crucial measure of the network’s health, was about $186 million in 2006. If YES sells at 15 to 19 times cash flow, it would be valued at between $2.8 billion and $3.5 billion. When the network was formed in 2001, its value was placed at around $850 million

http://www.nytimes.com/2007/08/03/sport ... 03yes.html

[fanforever]

I like to think of it this way: there are 7 teams that spend less money than the difference between the NYY payroll and the next highest payroll.

Here's how I think of it.

When the Yankees fly at a 25-man roster of $220mm -- which they have -- they can afford:

* three players averaging $22.5mm
* three more players averaging $15mm
* three more averaging $10mm
* eleven more players averaging $5.5mm
* the last five players on the 25-man roster -- the back-up catcher, utility infielders, the very end of their bench and the guys mopping up the pen -- making $2mm each

-- and then still have $7mm left to be paying waived players, picking up the salary of traded vets, etc.

That was my point. The Yankees generate enough income from Tciket sales, Radio and Yankee Stadium ...they don't need the TV Income

and how much of that 220 milllion is from TV revenue (YES NETWORK)?...my guess...a small fraction

You underestimate the revenue of a TV network...it pulls in more in revenue alone than some entire teams.

From an article in 2007

It has sold advertising aggressively on Yankees games and other Yankees-oriented programming. Its revenues exceed $300 million, and its cash flow, a crucial measure of the network’s health, was about $186 million in 2006. If YES sells at 15 to 19 times cash flow, it would be valued at between $2.8 billion and $3.5 billion. When the network was formed in 2001, its value was placed at around $850 million

http://www.nytimes.com/2007/08/03/sport ... 03yes.html

[st.lewis11]

http://www.latimes.com/sports/la-sp-ang ... 5144.story

Angels GM says focus is not on outfielder Matt Holliday
By Mike DiGiovanna
November 17, 2009
Tony Reagins says re-signing John Lackey and Chone Figgins remain the top priorities. Vladimir Guerrero and Darren Oliver are also still in play. General Manager Tony Reagins on Monday shot down a Foxsports.com report that the Angels are one of three teams, along with the Yankees and Red Sox, that have expressed serious interest in free-agent outfielder Matt Holliday.
"He's a talented player," Reagins said of Holliday, who hit .313 with 24 home runs and 109 runs batted in for the Oakland Athletics and St. Louis Cardinals in 2009 and could command a deal in excess of $100 million. "But our focus is not on him right now."
The team's top priorities are to re-sign pitcher John Lackey and third baseman Chone Figgins, but Reagins, who secured outfielder Bobby Abreu to a three-year, $19-million deal on Nov. 5, hinted that it is unlikely the Angels will sign either before Thursday, the last day the team holds exclusive negotiating rights to the pair.
"I know where both of them stand," Reagins said. "But as free-agent players they have earned the right to see what their value is."
Lackey, who is believed to be seeking a deal in the $100-million range, has reportedly drawn interest from Seattle, Milwaukee, Boston and both New York teams. Figgins, who could command a deal in the $50-million range, has reportedly drawn interest from Philadelphia, the Mets and both Chicago teams.
Reagins also has been in discussions with the agents for outfielder Vladimir Guerrero and reliever Darren Oliver but declined to address trade rumors that linked the Angels with Detroit outfielder Curtis Granderson and White Sox first baseman Paul Konerko.
"There are so many different rumors out there, it wouldn't be smart to comment on them," Reagins said. "A lot of them don't make sense."
Though the Angels are in the midst of a front-office reorganization that resulted in the loss of positions in the media relations and community relations department last week, Reagins doesn't expect the team's payroll -- about $113 million in 2008 -- to be reduced significantly.
"We're going to operate similarly to how we operated last year," Reagins said.

[TimeForGuinness]

I find it amusing that the Cards are interested, and we think we have no chance at signing Holliday.
The biggest players are showing no interest, and we think they're a bunch of snakes waiting to strike.

Cheer up Cardinal fans, it ain't over until Dennys Reyes sings.