Fortune reports that the Yankees regional cable network YES is for sale and that has many folks wondering, including some Yankee limited partners, if that doesn't mean the team might not be next. Of course, even if the team is next, it's not likely to bring a price anywhere near the asking price for the cable network. What might that be, in case you're in the market? Try, a cool $3 Billion, yes, with a "B", way more than the $1.2 billion that
Forbes valued the team in April.
YES is owned by the Yankees together with Goldman Sachs and former New Jersey Nets owner Ray Chambers. It's no secret that both Chambers and Goldman would like to cash out. Steinbrenner has been reconsidering what to do with his Yankee empire since the turmoil of the last year. His health has been problematic and his heir apparent, Steve Swindal, is no longer in the picture since the Boss' daughter Jennifer
filed for divorce from Swindal earlier this year.
There will be no shortage of interested buyers, which is always good for the price. Expect Comcast, Cablevision, Verizon and News Corp. (Fox) to be among the bidders.
UPDATE: The Yankees
have denied that their stake is for sale, absent a wild offer. Randy Levine, the President of the Yankees responding to press reports about the possible sale of YES by denying that the Yankees were interested in a sale:
“We’re testing the market for our financial partners, not for the Yankees’ stake,” Levine said yesterday. “The whole network isn’t for sale. The YES board has clearly stated that we’re not authorizing a sale.”
The Yankees' partners are not necessarily convinced that is the case.
Gerald J. Cardinale, a managing director of Goldman Sachs and a YES board member, said: “We have not predetermined that we will sell, but if we get a compelling valuation, we’ll consider it. We can’t speak for the Yankees.”
He added: “The Yankees will evaluate this with the current facts. If there’s a valuation that’s compelling to them, I think they’ll consider it.”
I think Mr. Cardinale is probably a lot closer to the truth than what Levine is peddling for public consumption. If an offer shows up valuing YES at $3 billion, the Yankees would be fiscally irresponsible not to sell. With all the uncertainty about succession now taking place within the Steinbrenner empire, an offer of that magnitude would be too alluring to turn down. It may also prompt the Boss to put the team up for sale as well. The trials and tribulations of that succession have been going on for years now. A recent
profile of George in
Portfolio includes a history of the relationship of the next generation of Steinbrenners and the team. After reading that piece, you come away convinced that selling the team is more likely that not.
Labels: baseball, MLB, New York Yankees, sports television, YES Network