Secret papers show Yankees make a lot of money.

"The millions of dollars earned by the Bronx Bombers - whose estimated $1.2 billion worth makes them one of the most valuable franchises in the world - have reached record levels."

No way!

Despite my knowledge of basic economics (inflation, supply & demand) and my knowledge of Yankee attendance figures (4 million+ every year), I must admit I am shocked that the Yankees are making record levels of income.

Of course, I didn't have access to secret papers.

"Documents obtained by the Daily News under a Freedom of Information request provide a rare look at the Yankees formidable cash-generating operation.

Even die-hard fans accustomed to paying top dollar to watch the superstar team will be astounded by the numbers."

Oh, a FOIL request. That means they're not really secret.

Go ahead, "secret" papers: Astound me.


"Last year, the team - which hasn't won a World Series in eight years - grossed a record $188 million in gate receipts, a 20.5% increase over the 2006 season."

Not astounded yet.


"Factoring in other revenue streams like overpriced hot dogs, beer, pizzas and souvenirs - and income from the cable TV rights to home games - Stadium income surpassed $319 million in 2007."

$319M? I'm actually underwhelmed.


"That should come as no surprise with prices like these:

- $9.50 for Budweiser on tap.

- $10.50 for Foster's beer on tap.

- $5.75 for a box of Cracker Jacks.

- $8 for Italian sausage.

- $5 for a Nathan's hot dog."

Make up your mind, pal.

You just said these figures "should come as no surprise" right after you promised some "astounding" figures from "secret" documents.


"Since the Yanks have a player payroll of $208 million - the highest in the league - they need to be one of the top-earning teams."

Let's say the Yankees had a payroll of $108 million. Or $58 million. They'd still want to make as much revenue as possible.


"And 2008 is guaranteed to be another record no matter where the team finishes in the standings because fans are desperate to see games in the final year of the House that Ruth Built."

Exactly!

Regardless of what? The $208 million payroll. Right?

See, the Yankees have successfully marketed a product -- an event -- that keeps demand very high. This is what drives the high ticket prices. So, it's not really the team payroll or the team record.

Of course, demand will fall over time if the record slips consistently and the record is somewhat linked to payroll.

You get the idea. The correlation between payroll and ticket price is not direct by any means. If it was, then why wouldn't the Yankees just charge $10,000 per ticket and spend $900M on payroll?

"As recently as 2004, the Yankees reported total gate receipts of only $122 million - half of what they are projecting for next year.

The last time the team won the World Series, in 2000, gate income was a mere $83.7 million."

Since you're interested in comparing income to payroll, I should point out that, in 2008, $83.7M is enough to pay for a backup catcher and a #4 starter.