If you enjoy reading about the business aspect of the sport, check out this article from the Biz of Baseball about the struggles of the Yankee brand during these tough economic times.
In the short term, winning is marketing. Much of the complaining about seat relocations, public handouts to billionaires paying millionaires and a cheating superstar, can be overlooked if the Yankees win. But as defined by Yankee fans, winning means winning it all. Long term, is what the Yankees are selling out of step with the zeitgeist? Tom Van Riper wonders, “Sure, the economic slump will only last so long, but some experts think the shock and suddenness of the global financial crisis may have shifted consumer attitudes permanently. For all but the wealthiest, the luxury sports experience could be out for a long time. That means a lot of $1,000 tickets and personal seat licenses could go unsold and unpopulated for a very long time.” That, not A-Rod, is the Yankees’ biggest problem.
Ultimately, I think the Yankees will be fine. They opened the new Stadium with some outsized expectations as to the revenues it would create, and will be forced to adjust those expectations due to the economic crisis impacting their corporate clients. However, once the money starts flowing again, I believe the fat cats will come back and pay the exorbitant ticket prices. As long as the club is winning, Yankee Stadium should be full.
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