The LoHud Yankees Blog

January is traditionally a slow month for baseball news. So for the second year in a row, we will showcase other blogs with a series of pinch hitters.

Next up is Mike from High and Tight.

Mike says he has been blogging for five years. “My favorite players are Don Mattingly and Mariano Rivera, and my man-crush on Joba Chamberlain grows daily. Born and raised in northern N.J., I’m now living in Southern California just north of San Diego. I’m an avid poker player and will next be playing in the World Series of Poker circuit event in Rincon, Calif., this March. Anyone who wants to say hello is welcome to stop by.”

Here’s his post:

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We’ve heard squawking from some team owners recently, jawing and complaining about the Yankees’ spending this past off-season. What, this is new? Despite the fact that the payroll for the 2009 season is lower than that for 2008, some such as Houston’s Drayton McLane and Milwaukee’s Mark Attanasio are crying for a salary cap, or anything to artificially inflate the price of the franchises that they bought for less than what Mark Teixeira received.

Well, be prepared for more complaints. The Yankees’ financial advantage isn’t going anywhere but up. The people in charge of the franchise have finally learned how to truly exploit the market.

In 2002, the Yankees (or rather, a company now known as “Yankee Global Enterprises, LLC,” which incidentally now also owns the Yankees baseball club) founded the YES Network, and has reaped huge financial rewards from it. Cable companies were paying the Yankees millions of dollars per year for the rights to broadcast games, and yet were still making huge profits on the product. The Yankees realized that by starting their own network, those profits could be theirs as well and the rest is history, culminating in the new ballpark across the street — the House that YES Built.

The new ballpark opens new avenues for revenue beyond luxury boxes and ticket price increases, which I’m sure we’ve all heard enough about. An aspect of profit most may not think about that the Yankees are about to exploit is concessions.

Every major league ballpark has concession companies bid for long-term contracts in order to provide services for the fans: food, beverages, souvenirs, restaurants, etc. Of the 29 other MLB teams, 28 are serviced by either Aramark, Centerplate, Delaware North Companies Sportservice, or Levy Restaurants (the Marlins fall under a contract that Dolphin Stadium already had with Boston Culinary Group). Rather than follow the tradition route of bringing in an outside vendor, the Yankees instead are following the blueprint they laid out when founding the YES Network. They’re doing it in-house by founding Legends Hospitality Management with partners CIC, Goldman Sachs, and the Dallas Cowboys.

Don’t think there’s a lot of money to be made in this industry? Let’s look at the examples given above. Annual sales (2007) for Aramark, Delaware North, and Levy were $12.4 billion, $2.0 billion, and $610 million respectively.

Centerplate, which ran the concessions at the previous stadium, earns $740 million in annual revenue. However, Yankee Stadium was their largest source and generated approximately $70 million per year. With the new amenities, restaurants, shops and bars at the new stadium, expect that $70 million figure to rise starting in 2008. Why would the Yankees decide to share $80, $100, $150 million in sales revenue with another company when the team itself could reap the profits?

The value of the new ballpark to the team goes far beyond new ticket prices, synergistic YES marketing, naming rights, partnerships, and advertising deals. It’s yet another chance for the Yankees to truly flex their financial muscles and reap as much benefit as possible from their brand.

As long as they continue to sink it back into the team on the field (and – through luxury taxes – the rest of MLB) then count me as satisfied.

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Thanks, Mike. Great job. Coming tomorrow: Zac from Zac’s Yankees Blog.

Joba Chamberlain made an appearance for Sharp at the big Consumer Electronics Show in Las Vegas. He’ll be there again today.

Joba and fellow pitchman David Ortiz were on CNBC today getting interviewed by Maria Bartiromo.

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AP learned the details of Angel Berroa’s contract. He would get $66,000 for playing in the minors. If he’s added to the 40-man roster, Berroa would make $800,000 with an additional $300,000 based on plate appearances.

Wondering how the Yankees paid for those free agents? Check out these stats off a press release from YES that arrived today:

· For the sixth straight year, YES was the most-watched New York-based regional sports network in total day delivery; its average delivery of 29,000 TV households was comparable to the combined delivery (31,000) of the other three New York-based regional sports networks (MSG, MSG Plus and SNY).

· For the sixth straight year, YES was the most-watched New York-based regional sports network in primetime (7-11 pm), averaging 72,000 TV households.

· Thirty-three YES telecasts of Yankees games in 2008 garnered a 5.0 rating or better, compared to just seven SNY telecasts of Mets games.

· In primetime, YES’ Yankees game telecasts regularly out-performed ABC, NBC, Fox and CBS programs in New York. For example, from May 28 to August 7, primetime YES Yankees telecasts were the No. 1-rated program in the New York DMA 24 out of 25 game days in TV households, Men 18+, Men 18-49, Men 25-54, Adults 18-49, Adults 25-54, and Total Viewers 2+.

· The average 2008 rating for YES’ Yankees pre-game shows was 29 percent greater than that of 2007 (0.9 vs. 0.7).

In other words, those Giuseppe Franco commercials are making YES a lot of money.

The Yankees seem to be a battle of which side blinks first with Andy Pettitte and his agents.

Petitte makes a lot of sense for the Yankees. He would eat up innings, likely pitch pretty well and give the rotation some stability. He also would be agreeable to a one-year deal. Joe Girardi started saying in August how much he wanted Pettitte to return.

Understand this: The Yankees still need starters. There are innings out there to fill and provisions must be made to guard against injuries. Otherwise it’s Sidney Ponson in June again.

Pettitte went on the record saying that money wasn’t an issue; he really wanted to pitch in the new Stadium. But money is the issue, otherwise Pettitte would have taken the $10 million they offered him four weeks ago. That’s fine, he’s a professional ballplayer.

A.J. Burnett is 32, had never won a thing and is 11 games over .500 for his career. Pettitte is 36, pitched in the World Series seven times and is 88 games over .500. In his mind, a $6.5 million gap between their salaries probably seems ridiculous.

But as Pettitte waits, the Yankees have options. There are free agents out there getting cheaper by the day. Brian Cashman could trade Xavier Nady or Nick Swisher for a starter.

Both Hal Steinbrenner and Brian Cashman indicated on Tuesday that the Yankees were done making it rain for free agents. But Pettitte is family, at least for now. There’s still a deal to be made if somebody blinks.

One thing is certain: Spring training is getting closer every day.

UPDATE, 7:02 p.m.: Via MLB Trade Rumors, here is what Houston GM Ed Wade said about Pettitte: “We haven’t had any discussion with Andy or his representatives and we don’t see a scenario where he would fit into our payroll scenario at this time.”

The Yogi Berra Museum and Learning Center will host an interesting event Jan. 20 as Diamond Sports will present a seminar on sports careers from 10 a.m. to 4 p.m.

The program is designed for students, educators and aspiring business professionals interested in learning about sports industry market developments, and sports career preparation, internships and opportunities.

Panelists will include Devils GM Lou Lamoriello and YES senior vice president Matt Cacciato.

For more information or to register, For more information or to register, contact Diamond Sports at (845) 531-2359 or send an e-mail to info@sportsbusinesscareers.com.

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Meanwhile, if you haven’t visited Yogi’s Museum, you need to get over there. They have a new exhibit on the closing of Shea Stadium and Yankee Stadium through Yogi’s eyes. Check out their website for all the information you need.

January is traditionally a slow month for baseball news. So for the second year in a row, we will showcase other blogs with a series of pinch hitters.

Next up is Mike Silva from New York Baseball Digest.

NY Baseball Digest started out as a radio show and has morphed into a collection of writings by Mike Silva and his team. For his entry, he went with a friendly “what-if” scenario?

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Earlier this year, my radio co-host Howard Megdal (author of The Baseball Talmud) and I replayed the 1969 Mets vs. the 1978 Yankees using the popular simulation Strat-O-Matic baseball. The Miracle Mets won that series in six games, thanks in large part to some questionable bullpen management by Bob Lemon. Although this series spurred great discussion, we noticed our contemporary fan base was disconnected from some of the names of the past. Instead of embracing Tommie Agee, Reggie Jackson, and Thurman Munson, they yearned for an ‘86 Mets vs. 90s Yankee dynasty matchup. In January, we will oblige by playing the 1986 Mets vs. 1996 Yankees.

The fun part about this matchup is the pre-game chatter. Hearing what the fans think about each team, who will win, and how the team stacks up historically is often more fun than rlaying the series. The ‘96 Yankees, in my opinion, were the weakest of all the recent New York World Series winners. That is why, just like their ‘69 counterparts, the ‘86 Mets should win in six.

It won’t be easy, mind you. Both teams are pretty balanced on offense, with gritty veterans (Paul O’Neill/Wade Boggs/Ray Knight/Mookie Wilson) and emerging stars (Darryl Strawberry/Derek Jeter/Bernie Williams/Tino Martinez). Both teams can score runs, but often short series come down to pitching and the Mets have that in abundance.

The starting pitching comparison is no contest. David Cone/Andy Pettitte/Jimmy Key is no match for an in-prime Dwight Gooden/Ron Darling/Bobby Ojeda. There is not one matchup that favors the Yankees during the series. The Mets could also utilize Sid Fernandez as a fourth starter/long man in the event any member of their trio gets in trouble.

Fans will probably argue that the Yankees’ deep bullpen will overcome the starting pitching deficit. They are wrong. Most games will see Mariano Rivera and company keeping games close, not holding leads. Remember, this Yankees team has John Wetteland closing games, not The Sandman.

You really can’t give any advantage when it comes to the skipper. Both managers were widely criticized, but underappreciated during their tenures. Davey Johnson knew how to connect with his wild veteran squad, while Joe Torre kept The Bronx from burning.

The computer will settle the debate during the week of January 11th, but the fun part begins now. Statistics will eventually rule, but the fun is discussing the intangibles that don’t show up in the box score. In the end, I believe the 19886 Mets will prevail, due to both starting pitching and mystique. The big question I have: What happens when Strawberry plays the field and is up at bat?

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Thanks to Mike for his post. I think the 1996 Yankees will acquit themselves better than he thinks. Coming tomorrow: Mike from High and Tight.

Jason Giambi is happy to be back in Oakland, having signed a one-year deal with an option.

“I’m back here to win,” The Big G said. “I didn’t come here just to come back and be the prom queen again and ride through the floats.”

Giambi thanked the Steinbrenner family and Brian Cashman during his press conference and spoke fondly of the time he spent with the Yankees.

“When you’re with the Yankees, you’re like a traveling rock band,” Giambi said. “I played with basically 25 superstars in New York every day. They’re incredible guys and we had the time of our life.”

Giambi also noted he planned to “stay scruffy.”

The Yankees did the right thing to move on and you can’t argue against signing Mark Teixeira. But Giambi can still produce and he’ll probably prove to be very valuable to Oakland. Every clubhouse needs a character and the Yankees will miss his personality.

Here’s Yankees president Randy Levine appearing on CNBC defending the team’s heavy spending in the free-agent market.

Clearly the front office has gotten together to spread this message. That’s fine. But as long as the Yankees play by MLB’s rules (or lack thereof), they don’t need to defend anything they do.

Journal News columnist Sam Borden chipped in a few more items gleaned from yesterday’s proceedings:

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During the CC Sabathia press conference, Joe Girardi talked about how he remembered coming into the weight room at Jacobs Field the morning after an Indians-Yankees game last season, and seeing Sabathia already there, even though the pitcher had thrown a gem the night before. To Girardi, that showed the kind of character Sabathia had.

When asked yesterday about Mark Teixeira, Girardi recalled an Angels-Yankees game at the Stadium on Aug. 3. Some people (including Edwar Ramirez) might remember that Teixeira crushed a grand slam in the eighth inning; Girardi, however, talked more excitedly about the diving stop Teixeira made in the fifth, robbing Wilson Betemit of a hit. “He’s just a complete and all-around player,” Girardi said.

It goes without saying that Teixeira is a better fielder than Jason Giambi, but his presence at first will also be worth something to the other infielders: Robinson Cano can be spotty, Derek Jeter’s arm isn’t what it used to be and A-Rod, as evidenced in the past, can fall into throwing funks. Teixeira’s glove will almost surely save them all a little embarrassment.

Meanwhile, everything is under construction at old Yankee Stadium, including the parking lot where the media and players used to park. So as I was walking from the temporary lot to the Stadium yesterday, I noticed the progress that’s being made on the new train station, which will allow fans from everywhere – including Westchester – to avoid traffic and $40 parking charges when they come to games.

It looks like there will be a long platform and bridge that allows fans to walk over top of the road and then come down in front of the new Stadium.

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Thanks again to Sam. Don’t forget, he and Rick Carpiniello are debating what lineup the Yankees should use over on the Faceoff blog.

Also, check in at Giants Journal tomorrow at noon. Sam and Journal News football writer Mike Dougherty will do a live video chat about the upcoming playoff game against the Eagles.

Vacation continues for your friendly neighborhood beat writer. But Journal New columnist Sam Borden attended the Mark Teixeira coronation yesterday. He was gracious enough to pass along this entry for the blog:

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After almost three hours at Yankee Stadium yesterday, two things stood out to me as I left:

1. Hal Steinbrenner is beginning to sound a lot like his dad.
2. The Yankees are basically done spending this winter, so forget about Manny Ramirez.

The first point was clear right from the beginning, when Hal – who is clearly the only Steinbrenner that matters right about now – repeatedly mentioned how the Yankees are committed to, basically, spending a ton of money because “the fans deserve it.” Referencing the fans was a big thing with George Steinbrenner, and as Hal brought it up over and over, it was hard not to imagine his father doing the same thing.

Obviously Hal (and Randy Levine and Lonn Trost and other officials) were upset about remarks made by people around baseball regarding their haul of players this winter. “”We had about $80 million come off (the payroll),” Hal said. “So we have some money to spend, and we’re going to reinvest it. That’s going to continue, whether people like it or not. That’s for the fans. They deserve the best team we can put out there.”

Hal also said that if owners don’t like it, “I’m not going to lose any sleep about it.” Very George-ish, too.

As for the second point, listen to what Brian Cashman said about the state of the current payroll, which is currently projected to be slightly below last year’s mark: “We’re going to come in lower. … The decisions we made this winter would compromise my ability to be aggressive in the free agent market (going forward). Let’s leave it at that.”

In other words, don’t expect another $20 million a year signing.

Cashman wouldn’t bite on where he expects the Yankees latest signing, Mark Teixeira, to bat in the 2009 lineup, and Joe Girardi said he had some preliminary thoughts but wouldn’t reveal them. If you’ve got an opinion on how the Yanks lineup should look, click over to the Faceoff blog, where Rick Carpiniello and I are debating that exact question (hint: Jeter bats second in my lineup. Shocking, I know).

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Thanks to Sam. Go check out the debate and Carp are having. Sam will have another guest post later today.