The Yankees, as usual, are on the cutting edge of things and recent news of them selling off parts of the YES Network to News Corporation (owner of FOX Sports) has me wondering if the Mets should do the same with SNY.
Under the terms of the deal, the Yankees would still own the majority percentage and therefore have control over the programming, which includes the Brooklyn Nets. When the Yankees launched YES in 2001, it was valued at $800 million. Today it is reportedly worth $3 billion and the Yankees would receive $270 million.
Say hello to Josh Hamilton?
The Yankees would also have buy-back options and opportunities to make more money later. As long as they maintain the greater shares – with the provision the minority owners can’t merge to form the majority – they will be in great shape. Hell, even if they aren’t the majority owners, who will want to tinker with the Yankees’ programming? It would be beyond dumb.
The Yankees weren’t the first team to have a regional network (the Braves, Red Sox and Cubs did at the time, but their brand was more valuable). Interestingly, the Dodgers attempted such a deal with FOX, but Bud Selig wouldn’t allow it and forced the sale by owner Frank McCourt. The Dodgers were eventually sold to the Magic Johnson group for $2 billion.
Obviously, the Mets can’t cut a similar deal with News Corp., but there is CBS, NBC and COMCAST. There are several dance partners available for a major deal. Another option would be to sell minority shares of SNY to several investors.
A Mets’ deal wouldn’t make as much as the Yankees, but they should net enough to take care of their debts, including the settlement from the Madoff ruling.
It makes me wonder why the Mets would do this. They would still maintain control of SNY’s programming and their team. They just wouldn’t have the whole pie.
Everything the Mets do screams of financial distress. They did receive a favorable ruling in the Madoff case, but don’t have to pay anything for two more years. That ruling could keep the handcuffs on for several more years and possibly preclude them from being aggressive in the free-agent market for another five years, which could have them at the end of an extension with David Wright, assuming they get that done.
I don’t know many Mets fans who are happy these days, and probably none who would accept five or more years of austerity until they are ready to compete.
What the Mets are planning with SNY only they know, but they might do themselves some good if they look at the Bronx.