The New York Yankees' contributions to baseball's global expansion and business innovation

NY Yankees Good for Baseball

Are the New York Yankees Good or Bad for Baseball?

In the history of American sports there has never been a single franchise that has been both the most reviled yet also the most followed, and continues to attract fans to the game of baseball as the New York Yankees. The Steinbrenner family's intensity of focus on creating a World Series capable team every year has led management consultants to criticize them as being classic leaders who cannot let go, or when they do make concessions, do them badly (Troutman, 1991). The intensity at which the New York Yankees organization attempts every season to create the right team to win world championships has been seen as arrogance by some and blind ambition by others. In fact the truth of the Steinbrenner's approach to managing for results is as transparent as it is powerful; hence detractors have often called the team "The Evil Empire." Despite how the team is despised by some, baseball fans globally need to thank this organization for greatly expanding the sport and also bringing it many innovations. This paper examines the contributions the New York Yankees organization makes to the sport and business of baseball, acknowledging the critics as well.

Advancing the Brand and Business of Baseball

First and most significant, the New York Yankees have in many fans' minds become synonymous with baseball around the world. Baseball is now one of the most popular sports in Japan and throughout many Caribbean nations as a result of the New York Yankee's influence on recruiting their top players from these areas. The brand of baseball as a global sport continues to be enhanced by the New York Yankees brand, its marketing and (Gordon, 2003). As a brand, the Yankees have become synonymous with winning, exceptional performance and the ability to withstand adversity yet still win championships despite setbacks. East Asian countries have adopted the New York Yankees as their team as the stories of their top baseball athletes being selected to play for them is seen as a source of national pride and personal accomplishment.

Second, the New York Yankees have revolutionized the approach baseball teams take to financing their operations. An example of this is the approach the Yankees organization is taking in constructing their new stadium in New York, due to be opened for the 2009 season. Their financing based on tax incentives is redefining how stadiums can be made more modern and useful for emerging market teams (International Tax Review, 2006). In addition, the Yankees also contribute more than any other team to revenue sharing, assisting smaller market teams in the process (Riess, 2004).

Third, the New York Yankees consistently sell out every away game they play, regardless of the city they are visiting (Gordon, 2003). For smaller market teams this translates into a minimum of an additional $200,000 or more in ticket sales for every single game the Yankees play in their city. When the Anaheim Angels of Los Angeles play the New York Yankees at home, there are over 45,000 tickets sold per game, which is a sell-out, at a minimum price of $5 each, not counting concessions or higher-priced tickets taken into account.

Summary

For all the criticisms and complaints of the approaches and practices the New York Yankees take to create a winning baseball club every season, there are those longer-lasting and lasting contributions they make to the game and its brand globally as well. No one can question their performance as a brand, selling out every away game for the last few seasons and their contribution to advancing the sport and brand of baseball.