Yankees Owner George Steinbrenner, "bargaining like a
free-agent ballplayer after setting a home run record," is
negotiating "a lucrative contract to run the Yankees after
he sells a majority stake in the team to Cablevision,"
according to Charles Bagli of the N.Y. TIMES. The contract,
which would leave Steinbrenner in control of the team, would
include "performance bonuses" for the team reaching the
postseason, and "could be worth as much as" $100M over 10
years, according to a Steinbrenner associate.
Steinbrenner's contract, which would also put him "in
charge" of the Knicks and NHL Rangers, "has emerged as an
important issue in the continuing negotiations to sell more
than two-thirds of the Yankees to Cablevision" (N.Y. TIMES,
11/24). In the WALL STREET JOURNAL, Stefan Fatsis reports
that Cablevision "would end up paying less" for the team
"than what media reports have batted around." Under "a set
of terms on the table," Cablevision would pay $300-350M for
"at least two-thirds" of the Yankees. Several "individuals
involved in the talks cautioned that no agreement has been
reached" (WALL STREET JOURNAL, 11/24). One Yankees source
told the N.Y. POST that the team is "expected to fetch" a
price "closer to" $700-750M (N.Y. POST, 11/24).
ROLE-PLAYING: Steinbrenner, on his future role: "All
I'm doing is taking on a new partner. Nothing is finalized,
but as I told you before, I'm not going anywhere." In N.Y.,
Madden & Siemaszko put Steinbrenner's contract with
Cablevision at 25 years. An attorney "familiar" with the
negotiations: "This is the deal of the century for George.
... Not only does he walk away with close to $400 million,
but he doesn't give up any control and he winds up with a
salary to supervise over the Garden, too" (DAILY NEWS,
11/24). A fried of Steinbrenner's told NEWSDAY's Jon Heyman
that Steinbrenner "would be involved in mostly
administrative duties" with the MSG teams (NEWSDAY, 11/24).
SAFE AT HOME? N.Y. Mayor Rudy Giuliani said the city is
"in pretty good shape" in terms of keeping the Yankees after
a sale. Giuliani: "What (the sale) does is assure the
Yankees are staying. I shouldn't say 'assures it.' (But)
it pushes even more in that direction" (N.Y. POST, 11/24).
IMPACT: Astros President Tal Smith, on a Yankees/
Cablevision deal: "The small markets are getting left
behind. It doesn't generate more revenue. If anything, it
makes their competitive position worse." Pilson
Communications President Neal Pilson said some of the sale
figures "seem low to me. We're talking about New York" (AP,
11/24). In N.Y., Harvey Araton notes a deflated price may
be because MLB "is flirting dangerously with the collapse of
competitive balance." Smith College Professor of Economics
Andrew Zimbalist: "Baseball is still in trouble because you
have five or six teams bidding for all the best players"
(N.Y. TIMES, 11/24). Meanwhile, Cablevision shares fell
more than 7% following reports of a possible deal, dropping
$3.50 a share, closing at $44 (NEWSDAY, 11/24)....On CNN's
"Moneyline," Alan Dodds Frank profiled the potential sale.
PaineWebber's Thomas Eagan: "It helps for Cablevision to
become an a la carte programmer. And what that does is, in
Cablevision markets which are chiefly Long Island and Boston
and Cleveland, it allows them to offer a sports channel with
national prominence" ("Moneyline," CNN, 11/23).
...Multichannel News' Tom Umstead: "ESPN has always said
they wanted to create a regional sports network, but without
the Yankees, Rangers and the Knicks ... it's going to be
difficult for them to come in and compete" (CNBC, 11/23).
