Billionaire Yankees Owner Cries Poor, Says He Can't Keep Up With Dodgers

The New York Yankees are baseball's most valuable franchise, worth roughly $7.6 billion. They own their own television network, the YES Network, providing them with a unique opportunity to earn more media revenue than their competitors. 

They sell more merchandise than anyone, have an unmatched track record with 27 World Series Championships, play in the biggest market, and routinely rank in the top 3-4 in MLB in attendance. 

Under former owner George Steinbrenner, the Yankees would easily outspend their opposition. In 2005 for example, the Yankees spent $206 million on payroll, nearly $85 million more than the second-place Boston Red Sox. That figure corresponds to roughly $333 million in today's dollars. 

Point being, the Yankees are and have been a money printing machine. In the not-so-distant past, they outspent their opponents significantly more than the current Los Angeles Dodgers do. In fact, the Dodgers ranked fifth in payroll in 2024 and second in 2023.

In that 2005 season, the Yankees spent 42% more than the Red Sox. They made the modern Dodgers look cheap. But don't tell that to Hal Steinbrenner, the Yankees' billionaire owner.

Dec 21, 2022; Bronx, New York, USA; Aaron Judge poses with Hal Steinbrenner during a press conference after being named captain at Yankee Stadium. Mandatory Credit: Jessica Alcheh-USA TODAY Sports

Yankees Ownership Complaining About Competing With Dodgers

Steinbrenner appeared on the YES Network this week and complained about being outspent by Los Angeles, even though his franchise is worth several billion dollars more.

"It's difficult for most of us owners to be able to do the kind of things they're doing," Steinbrenner said. "We'll see if it pays off. They still have to have a season relatively injury free for it to work out for them."

It's easy to feel sympathy for Steinbrenner, isn't it? Running a poor, downtrodden franchise like the New York Yankees. Owning a team in such a small market, with middling attendance, no television deal and no stars to market. Poor Hal. Poor Yankees.

Steinbrenner's complaint is, of course, absurd. The Yankees have plenty of money. They're surely earning millions more in revenue, even adjusted for inflation, than they were in 2005. Yet their payroll, after adjusting for inflation, was $39 million higher in 2005 than in 2024. 

So they're making more and spending less. 

Yes, there are luxury tax penalties these days, but even accounting for those, the Yankees are still spending less. They also just made the World Series, raking in millions more revenue from MLB postseason distribution and hosting three World Series games at Yankee Stadium. The Dodgers aren't the problem, wealthy owners like Steinbrenner crying poor are the problem. 

He could also look across the bridge at Steve Cohen in Queens. The Mets spent $315 million on payroll in 2024, $342 million in 2023, and $265 million in 2022. In fact, in each of the past three seasons, the Mets outspent the Yankees, despite being conclusively the second team by revenue in New York. He can't even outspend the other team in his own market?

To be fair to Steinbrenner, which we shouldn't be, the Yankees have routinely ranked in the top two or three in payroll the past few years. They've just done a poor job of distributing it. 

As has been discussed extensively, there is no way to buy a championship in baseball. The Dodgers aren't trying, because as the game's smartest front office, and one that's experienced a number of playoff failures over the past decade, they fully realize that the postseason is random. Even the best teams, the top seed, have just a 55-45 advantage over whatever divisional round opponent they play. And there's no ability to benefit from phantom roughing the passer penalties like in the NFL. 

That's just how baseball works.

The Dodgers are using the resources they have to put the best possible team on the field. They might be sacrificing some profit in the process, but they've realized that investing in their roster pays off with increased attendance, a marginal increase in championship probabilities, and long-term branding. Which ultimately winds up being a net financial benefit. Not to mention understanding that they operate a business in a competitive industry where the only point is to win. That winning has its own value, even in the regular season. 

That's a mindset George Steinbrenner shared. Apparently not his son.