Vintage Yankee Yarn, ltd ed litho

There’s been quite a bit of talk about the New York Yankees “buying” their championships over the years. 34 years worth of talk and it’s not going away. The complaints are so numerous and uniform and almost sound as if the Yankees are allowed to live by a different set of rules than the rest of the Major League Baseball teams. Ever since Mr Steinbrenner signed his first free agent, Jim “Catfish” Hunter, on New Years Eve 1974, fans and sportswriters have complained that the 27 time World Champions are throwing their money around at an unfair rate, stealing the best players every year.

Let’s do a “fer instance”.

Say you own a hamburger stand. Suppose that you serve a good product at a fair price and people come from near and far to sample your burgers. All of a sudden, you find yourself more profitable than your competition. Do you plow those profits back into your burger stand to make it better and more enjoyable for your customers or do you go with the status quo and pocket the additional profits? The smart businessman would try to enhance his business and make it grow, attract more customers and thereby create even more business and even more cash flow that can be invested back into his stand. The American way.

Okay, let’s step away from the burger stand for awhile.

Baseball ceased being a “sport” a long time ago. It’s now a business. The arbitrators that declared Dave McNally and Andy Messersmith free agents in 1973 made it that way. Until then, players were “owned” by the club that they played for, there was no player movement unless these “good-old-boys” that were the owners decided to make a trade. Players did not control their destiny in any way, shape, manner or form. Once the players were set free, a business developed from a sport. Once Charlie Finley decided to not pay the money he owed the Catfish, the best pitcher in baseball was allowed to field offers from all of the “new” business owners and decide where he wanted to set up shop.

Back to the burger stand.

Suppose that the owner of the above mentioned burger stand decided to take the excess profits and stick them in his pocket. His competition down the street, seeing that there was more money to be made by improving his stand, adopts a similar plan for his joint but decides to plow those profits back into his business. His brand grows and keeps growing because he keeps trying to stay ahead of the competition. By re-investing and making his business better, he’s increasing his revenues.  All of a sudden, he’s hiring the best cooks, the best service people and promoting his business at a rate that was unheard of prior to that point. Is that an unfair business practice? No, that’s the American way.

Ok, back to baseball. The greasy fries are starting to get to me.

When Charlie O, the arrogant guy with the profitable team, the arrogant guy who’d won 3 consecutive Championships, decided that he didn’t want to plow those profits back into his club, didn’t want to pay what he, by contract, owed, the sport of baseball turned into the business of baseball. The Catfish was set free, as McNally and Messersmith had been, and the reserve clause was rendered null and void, as Curt Flood had attempted  in 1970. Some of the competition, George Steinbrenner in particular, decided that he wanted to become the best and most profitable owner in the business and started paying the best players to come to work for him. Year after year, player after player, good choice or bad, Steinbrenner used the open marketplace to attempt to create the situation that would render the competition as also-rans. As any business owner would do that wanted to be the best. The American way. It paid immediate dividends, as the Yankees won the American League pennant in ’76, losing the Championship to the Cincinnati Reds, and the World Championship in ’77 and ’78, defeating the Los Angeles Dodgers, due in no small part to the signing of Reggie

Reggie's Amazing Night, ltd ed litho

Jackson. Success breeds the need for more success, just as the smell of a good burger breeds feeling the need to eat. By creating the successful franchise, the Yankees began enjoying more and more profit. Instead of playing in front of empty seats, the Yankees were playing in front of packed stands. The profits grew. With all of the happy customers, sales of Yankees paraphernalia grew and profits grew even larger. Investment of those profits back into the business allowed the business owner to grow the business even more. The Yankees became a international brand, not just a local brand. That interlocking NY was soon found globally, on a the hat of a kid in England, a tee shirt in the Netherlands, a uniform in the Dominican Republic, a banner in Asia. And it brought that marketing possibility to all MLB teams, another way to grow the brands that had been long established in the United States.

From 1981 to strike shortened 1994, the Yankees, even though Steinbrenner kept re-investing, were not winners. For 12 years, other teams made the playoffs, other teams won the pennant, won the World Championship.  5 different teams won in each of the two American League Divisions. The Blue Jays won the American League East 4 years in 5, the Red Sox 3 of 5. The Oakland A’s won the AL West 4 years in 5. There were 5 different winners in the NL East and 6 in the NL West in that same span of time. The Pirates won the NL East 3 consecutive years and the Braves did the same in the NL West. Most of these 21 different division winners won with the help of talent acquired through free agency. The problem is, not all owners grasped the concept, that they too could elevate the marketing of their teams by signing the best free agents at market price and becoming a more successful franchise and thereby enhance their revenues and create a more even field of competition. They wanted to keep their profits, not take that chance, not sign that free agent. So, they’d be complacent after winning, expecting to rake in the profits that come after winning and not be a player in the free agent market every year. When it became obvious that these franchises were falling behind, both in revenue and in competition, they blamed their small market status and claimed that that was the reason for consistent poor showing in the standing.  The Yankees? Still signing free agents but making poor choices. Continuing to invest. But not continuing to win. Taking chances with the hope of making their business better. Then, for a while, signing with the Yankees meant having to constantly defend yourself in public spats with ownership, physical confrontations with the manager, the booing of the fans who expected a yearly winner. The Yankees became a disdainful destination for players but the players still used Yankee offers as a  valuable bargaining chip.  The problem then became one of collusion. Owners didn’t want to spend the big bucks that players were commanding. They stopped falling for the threat of Yankee offers. They knew that most players didn’t really want to go there, have to deal with that. They kept market prices down. The Yankees, meanwhile, retooled their front office. Retooled their leadership on the field. Refined their image. Steinbrenner’s suspension didn’t hurt. Other voices in the organization were heard and became the sound of  better judgement. Player development became a more important part of the plan. They became a bit more of a desired destination for the players. Showed some success. Brought up players developed in their own organization. Made some important trades for quality players. Still worked the free agent market but became more of  a home grown team, too. Then the ceiling fell in. The players went on strike during the 1994 season. Fans became former fans, to a much higher degree than in the strikes of ’72 and ’81. There was no postseason in ’94. No winner for the 1st time. Only losers. Owners, players and fans. Then a shortened season in ’95. Diminished attendance, diminished revenues.

The Yankees minor league system was starting to produce major league talent. Championship caliber talent. Bernie Williams first, in ’91. Then Andy Pettitte in ’95. After cups of coffee in ’95, Derek Jeter

Jeter Reaching Greatness, ltd ed litho

and Mariano Rivera

Yankee Stadium Finale, ltd ed litho

in ’96. Jorge Posada in ’97. The foundation for 4 World Championships in 5 years. Traded for Paul O’Neill prior to the ’93 season, David Cone and John Wetteland in ’95, Joe Girardi and Tino Martinez in ’96 season. All major plyers in the start of the Yankees run. Acquired the old fashioned way. Signed Jimmy Key in ’92, Wade Boggs in ’93, Kenny Rogers and Dwight Gooden prior to the ’96 season. All but Key were not major factors. All free agents. But still the Yankees were vilified for “buying” the Championships.

Fast forward to 2009. Pettitte, Posada, Jeter and Rivera are still the foundation. Add more homegrown talent – Robinson Cano, Melky Cabrera, Brett Gardner, Ramiro Pena, Alfredo Aceves, Phil Hughes, Joba Chamberlain, Phil Coke, Dave Robertson, Chien Ming Wang, Francisco Cervelli. Most are major contributors, some minor and some not at all. Make some trades – Alex Rodriguez, Nick Swisher, Damaso Marte, Xavier Nady, Chad Gauvin, Eric Hinske – some worked out, some didn’t. Throw in what’s left of the last 7 years of free agent signings – Hideki Matsui (’02), Johnny Damon(’06), Jose Molina (’08), CC Sabathia

Rebirth in the Bronx, ltd ed litho

, AJ Burnett and Mark Teixeira(’09) and you have this year’s World Champions.  4 of 9 starting offensive positions are manned by homegrown talent. 2 others came via trades. 3 in free agency. Starting staff is 3/5ths homegrown. 2 via free agency. Bullpen? Other than Marte, all homegrown.

So, my question is: Did the Yankees just build the better hamburger stand by investing back into it or did they buy it?

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