The New York Yankees is the most recognizable team and logo in sports across the world. Whether you’re in the heart of New York, across the country in Los Angeles or across the World in Japan, Asia, or Africa, everyone seems to know the New York Yankees and the interlocking NY logo. Why is that? And how have the Yankees marketed their brand and company so well?
1923 was the year that the New York Yankees started to become the Yankees who are so well known today. It was back then that “The Yankees quickly became a marketable brand, as fans flocked to see them play (over one million attended games in 1920) and they did not have to wait long for success. Players including Lou Gehrig, Babe Ruth, and Joe DiMaggio helped achieve a number of World Series titles by 1939, including four straight World Series crowns 1936–39. This success continued; the team won five consecutive titles 1949–53. Despite the 1950s proving to be another successful period, after winning the World Series in 1962, the Yankees then went until 1977 before securing another one.” The Yankees’ huge success and championship winnings back in the 1920’s was also the beginning of the brand, recognition and eventual marketing of the famous New York Yankees.
Fast forward to the 1970’s when George M. Steinbrenner purchased the team and turned the Yankees, on and off the field, into the “Evil Empire.” “In January 1973, Cleveland-based shipping magnate George Steinbrenner purchased the franchise from CBS for $10 million. In 1974, Steinbrenner started a process of big spending on free agency by signing some star players who had become free agents.” Between the late ‘70s and early ‘90s the Yankees were one of the worst teams in baseball. Despite this the Yankees brand was still alive because of their previous grand history and success.
The Yankees brand and logo have become so famous that they are able to go into different industries and have their logo sell for them. “Fragrance is about to enter a whole new ball game with the creation of a New York Yankees scent masterbrand. Launching at the end of April in Macy's stores in the New York metropolitan area, at Yankees Stadium and online, the men's and women's scents will later expand to additional department stores domestically and in multiple international markets, said Tom Butkiewicz, chief executive officer and managing partner of The Cloudbreak Group, of the deal inked between his firm, Major League Baseball and the New York Yankees to create the prestige fragrance duo.” The Yankees also have a smart marketing plan, for example they launched a new fragrance after winning the World Series in 2009. Once winning the World Series after a nine year drought for the team, the Yankees gained even more fans, more sponsors asmore companies wanted to do business with the team.
“Despite periods with limited on-field success, the Yankees have remained a highly marketable brand. This has only been strengthened in the increasingly globalized and commercial world in which modern sport now operates. Not only is the Yankees brand successful for the franchise; it also helps the finances of other teams in MLB.” While some Yankee-haters might never want to admit it, the Yankees are good for baseball and the league. “More than 25 percent of MLB-licensed merchandise that is sold is typically associated with the New York Yankees. The royalties then get shared evenly among the 30 MLB teams; in 2009, this totaled $433 million, with the Yankees contributing $125 million.”
In more recent years since the early 2000’s baseball teams have been able to make television deals with local networks, resulting in teams’ having more money and higher payrolls. Now this made the Yankees an even stronger powerhouse when it came to free agency. Strikinga deal with their own regional sports network, the Yankees Entertainment Sports Network (YES NETWORK), took the Yankees to a whole different level financially as well aswith marketing and branding. “The fledgling Yankees Entertainment and Sports Network is talking to ad agencies about its marketing needs as it prepares for a spring 2002 launch, sources said. Six to eight shops have been contacted, and the New York client will soon cut to three finalists-based chiefly on case histories and chemistry meetings, said sources. That cut could come as early as next week.”
Other teams such as the Boston Red Sox, the New York Mets, and the Los Angeles Dodgers, just to name a few, also have deals with their own regional sports networks, giving them the ability to have an influx of financial gain and compete financially with the New York Yankees. “Television money is driving the sport’s top line growth. In 2014, broadcasting and cable money accounted for $2.88 billion, or 37% of baseball’s $7.86 billion of revenue. Just five years earlier, television proceeds were $1.73 billion, or 29% of the sport’s $5.91 billion of revenue. During the past five years, mega cable deals for the Dodgers, Seattle Mariners and Los Angeles Angels of Anaheim have kicked in, and last season MLB began new national broadcasting deals with ESPN, Fox and TBS that will pay a total of $12.4 billion over eight years–more than double the previous contracts.”
2015 Estimated Total Payroll
1
|
$276,008,625
| ||
2
|
$215,962,857
| ||
3
|
$172,742,250
| ||
4
|
$172,666,066
| ||
5
|
$171,821,277
| ||
6
|
$162,736,157
| ||
7
|
$154,832,483
| ||
8
|
$140,901,040
| ||
9
|
$138,882,500
| ||
10
|
$124,516,300
|
“The New York Yankees are worth the most, $3.2 billion, The Los Angeles Dodgers, worth $2.4 billion, land in second place three years after Guggenheim Baseball Management bought the team and Dodger Stadium for $2 billion from Frank McCourt. The Dodgers raked in more than $120 million in local television money last season, the most in baseball, as part of the team’s 25-year, $8.35 billion deal with Time Warner Cable. The team also leads MLB in attendance, with 3.78 million fans coming through the turnstiles during the regular season. The San Francisco Giants had the biggest year-over-year gain, doubling in value, to $2 billion. The Giants’ three World Series titles over the past five seasons have helped the team nearly double revenue, to $387 million.”
It’s not all good in Yankee-land! Along with the Yankees’ good publicity, recognition and fans comes bad publicityand other fans who absolutely despise the Yankees. But the list above shows the Yankees are number two in payrolls and their rivals, the Red Sox, are number four. Why so much hate and focus about the Yankee payroll? With revenue sharing and television deals, why do the Yankees still have the stigma of hatred and wealth? Other teams like the Red Sox, Dodgers, and Giants, are making the money too. How these teams among others choose to spend their money is what differs from the Yankees. I understand that small market teams don’t have the money that the Yankees do. Even so, small market teams can still be successful in the league. For example, the Pirates are on the rise and the Royals made the World Series last season, while the big ‘evil rich empire’ is on the downfall and haven’t made the playoffs in the last two seasons.
So why do the Yankees have such a bad and good reputation among fans and the league? What do you believe makes the Yankees brand and marketing?
Work Cited
McMains, Andrew. "Yanks Taking Pitches." Yanks Taking Pitches. Pro Quest- Eastern Edition, 22 Oct. 2001. Web. 5 Apr. 2015. <http%3A%2F%2Fsearch.proquest.com.libraryproxy.quinnipiac.edu%2Fdocview%2F212682883%3Fpq-origsite%3Dsummon>.
"MLB Team Cash Tracker." Http://www.spotrac.com/mlb/cash/. N.p., n.d.Web.<http%3A%2F%2Fwww.spotrac.com%2Fmlb%2Fcash%2F>.
Naughton, Julie. "Yankees' New Pitch: Fragrance Masterbrand." Yankees' New Pitch: Fragrance Masterbrand. Pro Quest, 17 Feb. 2012. Web. 5 Apr. 2015. <http%3A%2F%2Fsearch.proquest.com.libraryproxy.quinnipiac.edu%2Fdocview%2F926418888%3Fpq-origsite%3Dsummon>.
Ozanian, Mike. "MLB Worth $36 Billion As Team Values Hit Record $1.2 Billion Average." MLB Worth $36 Billion As Team Values Hit Record $1.2 Billion Average. Forbes, 25 Mar. 2015. Web. <http%3A%2F%2Fwww.forbes.com%2Fsites%2Fmikeozanian%2F2015%2F03%2F25%2Fmlb-worth-36-billion-as-team-values-hit-record-1-2-billion-average%2F>.
Umstead, Thomas R., and Mike Farrell. "Hindery Says 'YES' to Yankees Network." Hindery Says 'YES' to Yankees Network. Multichannel News, 17 Sept. 2001. Web. 5 Apr. 2015. <http%3A%2F%2Fsearch.proquest.com.libraryproxy.quinnipiac.edu%2Fdocview%2F219857835%3Fpq-origsite%3Dsummon>.
