The New York Yankees have been trying to redeem themselves after an awful 2023 season. It was one of their worst seasons in the last 30 years. Moreover, the Bronx Bombers had so many issues to deal with this winter. They had a terrible offense, which they had to take care of. Last season, the NY side had the second-worst batting average. Only the Oakland Athletics had it worse than them. On top of that, the Bronx Bombers had to deal with their situation of just one superstar outfielder. The old Yankees would always have multi-starrer rosters.
That’s why the Yankees went all-in to land Juan Soto from the San Diego Padres. Clearly, they know how to do business. The NY side got the Dominican superstar for a year. However, the Yankees are not the same “Evil Empire” they once were. Albeit, they still are one of the most popular teams in Major League Baseball. Moreover, the iconic franchise owns a lot of stuff. And with their popularity, they get a pretty good value for their broadcasting rights. Moreover, the Yankees are currently trying to own YES Network along with Amazon.com.
With Recent Diamond Sport’s Deal, Amazon And Yankees Will Have Near-Parity Stakes On YES Network
Recently, the New York Yankees and Amazon.com find themselves close to sign an agreement that Diamond Sports proposed. As per this agreement, Amazon will get a pathway to near-parity ownership of YES Network along with the 27-time MLB World Series champions. One of those intriguing clauses will depend on how the Diamonds fare. As a result, Amazon could also own stakes of the New York area RSN. That area generally broadcasts the Brooklyn Nets, the Yankees, and Liberty dirt cheap of WNBA. The YES Network owner, in a bankruptcy situation could raise close to $1 billion if he followed the restructuring plan of the Diamond Sports.
They unveiled a restructuring plan a week ago. As per the plan, the owner would get help from investments of Amazon, and a group of current debt holders. Then, there will also be a lawsuit settlement with the Sinclair Inc. owner, who is a soon-to-be former owner. Interestingly enough, Amazon would contribute only $115 million. It will happen immediately after the bankruptcy court approves it. Moreover, the whole process demands a high price as the mega-retailer is getting deep into its business relationship with MLB’s most iconic franchise.
How Things Stand As Of Today?
Amazon can claim the Diamond’s equity of YES every time it is due after a couple of years. Moreover, Yankees led a consortium that bought the 80% share of YES that it didn’t own back in 2019. It’s enterprise value is at $3.47 billion. It means Amazon can claim equity worth around $700 million at the 2019 price. If the Yankees want, they can sell YES for a nice premium to the 2019 value.
At a tenth of its true value, Amazon can get a fifth of YES. Anyway, at present, the Yankees have a 26% share of YES, Diamond owns 20%, and Amazon 15%. This data comes from S&P Global Market Intelligence. Anyway, it seems Amazon will eventually own 25% of YES in the next two years.
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