Home Ballpark Facility News Yankees Borrow $105M to Cover Cost Overruns for New Stadium

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Yankees Borrow $105M to Cover Cost Overruns for New Stadium PDF Print E-mail
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Written by Maury Brown   
Tuesday, 17 March 2009 10:48

New Yankee StadiumThe New York Yankees borrowed $105 million in early March to cover cost overruns at new Yankee Stadium set to open this year, according to a report in this week’s SportsBusiness Journal. The loan was made using “sponsorships, premium seating and ticket sales, categories that are expected to total $330 million this season” as collateral.

The stadium, which according to Neil DeMause of Field of Schemes, now totals more than $2.3 billion, has debt totaling $1.329 billion, according to the SBJ

(see table provided).

As debt and costs continue to rise, so does fan acrimony over which seats are being assigned former season ticket holders moving into new Yankee Stadium (see Jay Jaffe’s Unfiltered post on Baseball Prospectus for starters).

However, the Yankees may be looking well past all of this news as the SBJ reports that, “when adding in the Yankees’ fees from the YES Network and other media, and calculating in concessions revenue, total dollars generated by the team should exceed $450 million. That would make the club one of the highest-revenue clubs in pro sports, if not the highest.”

Yankee Stadium Finance
Catagory Amount
Tax-exempt bonds $1.199 billion
Taxable bonds $25 million
Goldman Sachs-led loan $105 million
TOTAL $1.329 billion

Source: SportsBusiness Journal


Maury BrownMaury Brown is the Founder and President of the Business of Sports Network, which includes The Biz of Baseball, The Biz of Football, The Biz of Basketball and The Biz of Hockey. He is contributor to Baseball Prospectus, and is available as a freelance writer. Brown's full bio is here. He looks forward to your comments via email and can be contacted through the Business of Sports Network.

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