The Yankees have found themselves in the news yet again. Today, 21st Century Fox (NASDAQ: FOXA) announced they will acquire a bigger share of the YES network. For those who don’t know much about the YES Network, it delivers coverage of New York Yankees baseball and Brooklyn Nets baseball, as well as a variety of northeastern college events on a weekly basis.
The only solid numbers that are clear for the moment is that the deal, when finalized would have 21st Century owning 80% of the network. In 2012 21st Century Fox acquired about 49% of the YES network; the company believes that the YES network will dominate other networks in the immediate future. Though 21st will practically own YES network, the 20% remaining stake will continue to be kept for Yankee Global Enterprises. In this deal the president and CEO of the YES network Tracy Dolgin, will keep his important role for the network.
The Yankees will be looking to separate themselves from the concerns of the past season, especially the controversy surrounding Alex Rodriguez and the immense spending on roster renovations, which included bidding and successfully signing Masahiro Tanaka Japanese star which will now call New York home. The Yankees have spent around half a billion on its renovation capping it off with Tanaka’s seven-year, $155 million deal. The Yankees understand that this is a very important season; the organization wants to go back to their winning ways and want the entire country and people across the globe to know that the Yankees are back.
“Our investment in the YES Network underscores our commitment to growing our global sports portfolio with offerings that are exceptional and unique,” said James Murdoch, Deputy COO, and 21st Century Fox, in a prepared statement. “We look forward to expanding our partnership with Yankee Global Enterprises and to working with the network’s management team to build on the YES Network’s success.”
The deal will benefit both 21st Century Fox’s regional sports holdings and the YES network. 21st Century Fox already controls 22 U.S. regional sports networks, which can give the Yankees more exposure if needed.