The New York Yankees, the Dallas Cowboys, Goldman Sachs and CIC Partners today announced that they have founded Legends Hospitality Management, LLC (“Legends”), a new company that will offer a broad range of sports business services. Legends’ initial focus will be on operating catering, concessions, retail merchandising and other facility management enterprises for major sports and entertainment facilities.
Led by Michael Rawlings, former President of Pizza Hut, Inc., Legends will offer differentiated solutions to create innovative, high-quality stadium experiences for fans.
George M. Steinbrenner, Chairman of the New York Yankees said, "This partnership brings together two of the finest sports franchises and creates a business that will take advantage of their tremendous insight and expertise. No one knows their fans better and has a greater interest in providing them a great game-day experience. With both the Yankees and the Cowboys moving into new stadiums next season, this is certainly the right time to rethink our approach. Beyond that base, we are confident that other facilities and teams will be interested in what Legends can offer. I look forward to building a business with Jerry."
Jerry Jones, Owner and General Manager of the Dallas Cowboys, stated, “Fans are increasingly voicing their opinion that they want and deserve more from a stadium experience – they want a winning team, but they also want a venue that truly complements the game and elevates the experience. We couldn’t agree more. Legends was founded on the principle that enhancing the stadium experience will result in a more satisfied fan base. Satisfied fans attend more games and show greater loyalty to their home team, which ultimately benefits franchises, players and their communities.”
“The old model of stadium concessions is broken,” stated Hal Steinbrenner, Co-Chairman of the New York Yankees. “Fans want and deserve a better experience for their sports entertainment dollar. Working with Legends to leverage the talent and experience resident in the Yankees’ and Cowboys’ organizations will enable us to set a higher bar for sports franchises while delivering greater value to fans. When the new Yankee Stadium opens for the 2009 season, our fans will be able to experience first-hand the enhancements to our menus, concessions, retail operations and fan spaces that Legends has overseen.”
“Our focus is on the fans,” said Stephen Jones, Chief Operating Officer of the Dallas Cowboys. “From a casual dining experience to feeding large crowds in mass quantities, or from selling the latest fan fashions at our specialty retail shops, our service delivery systems will be engineered to enable us to deliver quality services."
Mike Rawlings, Chairman & CEO of Legends, added “Quality is the hallmark of the Legends brand, and I am confident that the team of experienced professionals we have assembled will set the highest standards of quality and service in the industry. We are thrilled to be partnering with the New York Yankees and Dallas Cowboys – two teams with reputations for innovation and value creation – as we create a new paradigm in sports concessions that will deliver unparalleled and affordable stadium experiences for fans.”
Sources of Revenue: Stadium tickets: $117 million (4.2 million tickets at an average of $28 each); YES network TV/radio rights: $60 million; Major League TV and licensing: $30 million; concessions: $10 million; sponsorships and advertising: $30 million; premium seating: $27 million; local radio: $13 million; catering: $5 million; other: $10 million.
Annual Overhead Costs: Player salaries: $195 million; Major League revenue-sharing fees: $70 million; Major League luxury tax: $25 million; stadium operations: $20 million; travel and training: $20 million.
Best Way to Make Money: Buy a related business—a cable network like YES—and rake in your profits there. And run a tight ship: The Yankees staff is a mere 200 in New York, including the players and the Staten Island farm team. Most stadium staffers are contracted out.
Worst Way to Make Money: Membership in Major League Baseball. The Yanks hand over $100 million a year to MLB ($70 million revenue sharing, $25 million luxury tax)New Yorkonomics: Owning the most storied franchise in all of sports provides benefits, like international fame and World Series rings, that go far beyond the bottom line. My guess is that as the number of billionaires proliferates, the price of the Yankees will continue to rise. Expect to see the team’s future owners lose more and more in the quest to be at the head of another pin-striped victory parade.
...this article is a couple months old so my apologies if you have already read this but I stumbled upon it and decided it would be worth throwing it up in case you missed it.
“Anyone who needed proof that Yankee Stadium is the grandest stage in baseball got it last night.
“The 2008 All-Star Game was one of the greatest experiences in my life and in franchise history. Thanks to the fans who jammed our Stadium and cheered into the wee hours. Thanks to the players who played their hearts out for their Leagues. Congratulations to Major League Baseball and Bud Selig for an extraordinary event.
“I was impressed and humbled by the record number of Hall of Famers who lined the field. Their presence underscored the heritage that Yankee Stadium represents.
“I particularly appreciated the many people who wished me well.
“The whole evening makes me anticipate the next chapter in the Yankees saga even more. I look forward to opening the new Stadium next year, knowing that the 2008 All-Star Game will forever be a tremendous part of the old one’s legacy.
"The Boss has been the most important and consistent part of Yankee success since buying the team. We need to show George our appreciation for his years of dedication to the Yanks and for his dedication to us, the fans."You can sign the petition here:
The Yankees announced on Thursday, February 14th that their Spring Training home in Tampa, Legends Field, will be renamed George M. Steinbrenner Field.
