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News Corp acquires their stake in YES Network

Nov 20, 2012, 12:31 PM EDT

YES Network

We heard about this last week, but now it’s official and now we know how big a stake:

News Corporation said Tuesday it was acquiring a 49 percent stake in the Yes Network, the New York Yankees’ regional cable sports channel. Yankee Global Enterprises, Goldman Sachs and other investors will reduce their ownership as part of the transaction.

News Corp gets an option to buy up to an 80 percent stake in the network.  If that were to happen the Steinbrenner family and the Yankees, obviously, would be a lot more like every other team which receives rights payments from a broadcaster rather than having one side of the house pay the other. Which makes this more interesting:

The Yankees also committed to stay on Yes Network through 2042, subject to approval of the deal from Major League Baseball.

Huh. You have to assume that there is some sort of mechanism to automatically keep those TV rights at the top of the market, because locking in to some sort of relationship for the next thirty years would, quite obviously, hurt the Yankees’ ability to get top value for broadcast rights from the presumably then third-party YES Network.

  1. henryd3rd - Nov 20, 2012 at 2:31 PM

    The rich get richer!

  2. cosanostra71 - Nov 20, 2012 at 3:53 PM

    Goldman Sachs owns a piece… Of course.

  3. fanick82 - Nov 20, 2012 at 6:26 PM

    Locking in those capital gains before 2013

  4. williamnyy23 - Nov 20, 2012 at 6:54 PM

    Wrote about the topic (see link below if interested), but basically, the rights deal includes yearly increases that pretty much mirror the average in the industry. In other words, the Yankees will see a 5% increase that should keep their rights fees in line with the market, unless another explosion occurs (just as likely, however, is a deceleration of fees). As a result, the Yankees will be receiving $350 million by 2042, which is a staggering figure. Undoubtedly, News Corp.’s ability and willingness to commit to such a long-term contract was a key part of the deal. The Yankees had likely reached a crossroads regarding the YES network and may have determined that they had taken the network as far as possible with out a media partner. Now, they not only have a partner capable of increasing the value of their investment (the team will likely retain a stake regardless), but making steadily increasing cash payments for the next 30 years.

    http://www.captainsblog.info/2012/11/20/blue-jays-yankees-battle-in-board-room-but-how-will-it-spill-onto-the-field/18365/

  5. badintent - Nov 20, 2012 at 11:44 PM

    This is great news !! Donald Trump is out, he can find more time to fight with Cher on Twitter. Did anyone see that recent pic of Cher ? Look like she got her 3rd boob job!

  6. huffdaddyco - Nov 21, 2012 at 8:57 AM

    In a related story, the Yankees fans posting here will start calling themselves “Fair and Balanced”

    • bigharold - Nov 21, 2012 at 10:57 AM

      No we won’t!

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