Yankees New Stadium
The biggest problem the Yankees face is they continue to pay top dollar wages. The result is to offset this cost fans pay top dollar to see the team play. The end result is the Yankees are playing a risking game and banking their financial future on their new stadium. Often the secret to large profits is to sell the experience and not just a baseball game. It appears this is exactly what the Yankees are aiming to do. The new stadium will include restaurants as well as a great hall upon entrance which can be used for events. The cost of the stadium will be a whooping $1 billion and will make its debut in 2009. The Yankees face a challenge affording the stadium and will need to raise an addition 50 – 60 million dollars a year. Also the Yankees are refusing to sell naming rights for the new stadium. The new stadium will have less seats than the current stadium, but the Yankees will have 60 luxury suites to sell. This is three times the amount in the current stadium.
It seems to me that the Yankees are playing a slightly dangerous game financially. They seem to be entering into a stadium with several doubts over if they can afford it. Also it seems they are buying the stadium on the hope it will be a success with little actual evidence. The stadium will have less seats so increased revenue might be harder than they think. Overall it appears that the Yankees are prepared to do whatever it takes to stay on top. The Yankees payroll is out of control and maybe its time for the league to step in to place some kind of salary caps. The result of increased expenditure is the other teams end up over spending to compete and overall the money is out of control.
