The Yankees have "become the first professional sports
team to turn cyberspace into a major, seven-figure revenue
source," after "licensing their Internet rights" to N.Y.-
based American City Studios (ACS), according to Andy
Bernstein of the SPORTSBUSINESS JOURNAL. ACS agreed to pay
the Yankees an undisclosed amount "up front for the rights
to produce and market all team-related Internet" and World
Wide Web activity "through the 2001 season." ACS "will
keep" 100% of advertising, sponsorship and subscription
revenue "up to a certain threshold." Once that level has
"been surpassed," 50% of additional revenue will go to the
team. ACS "will also" pay the team a 20% cut "from online
merchandise sales." Although terms were not disclosed, one
Yankees official said that the team "passed up another
offer" for $3M. In return, the team has "agreed to promote
the site" with "more than" $1M worth of "team-controlled" ad
inventory." ACS President & co-Owner Joe Vialone, whose
company produces Web sites for five other MLB teams: "The
Yankees are making a huge investment in promotion on the
Internet site. They're really getting behind the site like
no other team." The new site, which replaces the current
site managed by Medius Interactive, is "expected" to debut
"about" July 21 (SPORTSBUSINESS JOURNAL, 7/12 issue).
