The New York Yankees Stubhub Deal Makes All of MLB Richer

The New York Yankees ended a four-year holdout on Monday, and their new deal with Stubhub means additional revenue for all of Major League Baseball.

The New York Yankees Stubhub Deal Makes All of MLB Richer

In 2012, the Yankees were one of two teams to opt out of MLB’s deal that made Stubhub the official ticket resale platform of the rest of MLB. During that time, the Yankees designed their own platform, Yankees Ticket Exchange, which was powered by Ticketmaster.

According to Darren Rovell, the Yankees and Stubhub began negotiations in Feb. On Monday those meetings came to fruition.

The Yankees have agreed to transfer their ticket resale platform to Stubhub effective July 7, in exchange for an undisclosed amount. Rovell stated that the revenue for the Yankees is believed to be upwards of $100 million over the 6-1/2-year span of the contract.

While it’s unclear if this will prompt movement on the now lone Stubhub holdout, the Los Angeles Angels of Anaheim, this is still a fiscal boost for all of MLB.

Revenue Sharing

Revenue from ticket resales is considered local revenue, and therefore is subject to MLB’s revenue sharing pool. Under the current collective bargaining agreement, all teams pay 34 percent of their net local revenue. This new revenue will only increase the Yankees’ sizable contributions to that fund.

The Yankees were part of a quintet of teams who paid a combined $1.15 billion in revenue sharing over the first four years of the current CBA. The Boston Red Sox and the Yankees were responsible for the largest chunk of that payment, combining for 61 percent.

While the revenue sharing structure is likely to be altered in the new CBA that will soon be negotiated (the current CBA expires Dec. 1, 2016), that doesn’t change the amount of local revenue that the Yankees will have their contribution figured upon. Regardless of the formula, there will be more revenue.

More revenue will mean a larger payout to all 30 MLB teams. Current restrictions on revenue sharing money already requires teams to use the funds, “in an effort to improve its performance on the field.” Those restrictions may tighten more in the new CBA, and that may mean enhanced salaries for coaches, managers and players.

While it’s uncertain exactly what these structures will look like in the new CBA, what we know for sure right now is that the most valuable franchise in MLB has found yet another revenue stream.

Main photo.


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