The 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 weekâ€™s SportsBusiness Journal. The loan was made using â€śsponsorships, premium seating and ticket sales, categories that are expected to total $330 million this seasonâ€ť 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 Jaffeâ€™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, â€śwhen adding in the Yankeesâ€™ 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.â€ť
|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 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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