Tax Reform in This Election Year: It's Not Likely
Which Credit Card Rewards Does the IRS Care About?
I have never been the world's biggest soccer (football for my European readers) fan. I have attended a Columbus Crew game, that is an American Major League Soccer (MLS) team, in the past. I watch soccer sometimes when it is on ESPN, it is often the Champions League finals, and I will root for the USA during the World Cup. However, that is where my soccer fandom ends -- as far as I am concerned, "football" is the game played with the oblong, pigskin ball featuring two heavily armored teams battling on the gridiron for the ultimate supremacy in either the NFL or NCAA.
NewYorkYankees posts
FeedJockStocks: Real Madrid spends real money
Bank of America extends deal with Yankees
Bank of America (NYSE: BAC) is taking a nice chunk of the money it received from the United States taxpayer and plowing it into a worthy cause: the New York Yankees.Yes, America's least favorite welfare brat is extending its sponsorship of the Evil Empire after breaking off talks on a long-term sponsorship of the new stadium at the beginning of the month.
Bank of America Joe Goode said Friday that "while we couldn't proceed with a long-term partnership, we have extended our current sponsorship agreement with the Yankees for one more year."
A salary cap in baseball?
Let's take a trip to the "yeah right" files with this entry. Boston Red Sox owner John Henry has again picked up the torch crying for a salary cap yet again. Pot, this is the kettle. The Red Sox payroll is the fourth-highest in Major League Baseball at $133,390,035. Henry's problem is that he was outspent by his arch rival: the New York Yankees. In fact, Henry said that the Yankees spent like Congress.For history's sake, Henry presented a salary cap five years ago (which was sour grapes in the wake of losing A-Roid to the Yankees) -- obviously this proposal never took hold. I just find it humorous that the owner of the Red Sox is calling for a salary cap. This is a team that is spending a veritable ton of money, and is succeeding. Let's take a look at the Pittsburgh Pirates, the Cincinnati Reds, the Oakland A's. All of these teams are considered "small market" teams. One would think that one of their owners would be yelling for a cap -- and that isn't the case.
Scott Boras on why Major League Baseball is better without a Salary Cap
After the New York Yankees signed the three biggest free agents on the market, Milwaukee Brewers owner Mark Attanasio sent an email to Bloomberg calling for a salary cap: "At the rate the Yankees are going, I'm not sure anyone can compete with them. Frankly, the sport might need a salary cap." He added that "I paid $220 million for my team; now they get three players for $420 million."Under a salary cap system, teams would be limited as far as how much they can spend on player salaries each year -- the idea is to allow smaller-market teams to be competitive.
But in an interview with CNBC, Scott Boras -- the controversial super-agent who represents Mark Teixeira, Manny Ramirez and many others -- explained why he doesn't think baseball should have a salary cap. Of course it's a pretty self-serving argument but here's what he said: "I'm not sure what a salary cap does other than it prevents choices."
Of course Scott Boras could sell a champion sailor to a guy in the desert, but he actually might be onto something with this one: The free agent frenzy of out of control spending adds a "Hot Stove" season to baseball that others sports lack. And for all the talk about big budget teams killing competitiveness, the two teams that made it to the World Series ranked 13th and 29th (second to last) on the list of teams with the biggest budgets.
Rupert Murdoch is in a pickle with the World Series
The Boston Red Sox can take comfort in knowing that media tycoon Rupert Murdoch is in their corner tonight as they face potential elimination from the American League Championship Series at the hands of the Tampa Bay Rays. Whether that will help the Sox overcome a 3 games to 1 deficit is doubtful.Murdoch, who probably prefers rugby or soccer to America's past time, is in a pickle with the World Series that will be broadcast over his Fox network. News Corp. (NYSE: NWS) shareholders, whose holdings plunged more than 60 percent this year, are probably gritting their teeth that the Philadelphia Phillies (my team) defeated ex-Red Sox slugger Manny Ramirez and the Los Angeles Dodgers to capture the National League championship. Ramirez is one of the game's best known and controversial personalities. Moreover, the Dodgers attract fans from all over the country including older folks who remember them when they were in Brooklyn.
The Red Sox nation are among the most passionate fans in baseball. I bet they are miffed that the ALCS has been relegated to TBS while the much inferior National League basked in the glow of network television. Furthermore. the Red Sox , one of the most storied franchises in sports, are on the verge of being eliminated by a team from Tampa Bay, which gave the world Hooters. Okay, that was Clearwater, but it's close enough.
Continue reading Rupert Murdoch is in a pickle with the World Series
Lessons for investors in the woes of the New York Yankees and Mets
Baseball is not always a perfect metaphor for life, but it is a good one for investing.Good teams know how to find value where others may not see it. Spending gobs of money on expensive players does not always pan out and successful companies do the little things well. There is no better illustration of this than the current sad state of the New York Mets and New York Yankees.
Despite investing more money than the GDP of some small, developing countries on high-priced talent, the New York Mets and New York Yankees are being outperformed by teams from the vast baseball wasteland known as Florida. The pain being felt by New York sports fans pales in comparison to the anguish in the executive offices of Walt Disney Co. (NYSE: DIS)'s ESPN and News Corp. (NYSE: NWS)'s Fox Sports, which spent big bucks tor the rights to broadcast baseball games. I bet ESPN and Fox ad sales representatives would break out in a cold sweat at the thought of an all-Florida World Series.
What's ironic is that the people in Florida don't seem to like baseball. More than 80,000 people showed up to watch the football games of powerhouses University of Florida and Florida State in 2006. Last year, the American League Rays attracted an average of 17,148 fans to their games and the NL Marlins drew 16,919, according to the Baseball Almanac. That's roughly a third of the 52,739 who went to see the Yankees or the 47,579 who went to watch the Mets.
Continue reading Lessons for investors in the woes of the New York Yankees and Mets
Alex Rodriguez to the Cubs for a share of the franchise?
Corporate governance experts will tell you that executives generally perform best when their interests are aligned with those of their shareholders -- a CEO who owns a big chunk of stock tends to be more concerned about the interests of investors. After all, he is one! But does the same idea apply to baseball players?
Alex Rodriguez's super agent Scott Boras is said to be looking for a 10-year, $300 million deal for the star, and The Wall Street Journal has an idea (subscription required) for a novel way for a team to come up with the cash:
That is an awful lot for any team without the Yankees' payroll to commit to. But what if, as with a Wall Street firm, a chunk of it came in the form of equity? Such risk-sharing might be attractive for some team owners, though the compensation might need to be deferred to comply with league rules...
It sounds like an interesting idea. It might encourage Rodriguez, who has developed a reputation for being enigmatic at time, to engage in PR activities and really add value to the team, on and off the field.
It's probably a long shot, but definitely interesting to think about.
Alex Rodriguez's super agent Scott Boras is said to be looking for a 10-year, $300 million deal for the star, and The Wall Street Journal has an idea (subscription required) for a novel way for a team to come up with the cash:
That is an awful lot for any team without the Yankees' payroll to commit to. But what if, as with a Wall Street firm, a chunk of it came in the form of equity? Such risk-sharing might be attractive for some team owners, though the compensation might need to be deferred to comply with league rules...
It sounds like an interesting idea. It might encourage Rodriguez, who has developed a reputation for being enigmatic at time, to engage in PR activities and really add value to the team, on and off the field.
It's probably a long shot, but definitely interesting to think about.
Yankees can do without gutless A-Rod
Yesterday, during the Boston Red Sox' sweep of the upstart and exciting Colorado Rockies, crybaby extraordinaire Alex Rodriguez decided it was "the time" to announce he was opting out of his contract with the New York Yankees and filing for free agency. He had to make a decision within 10 days after the World Series ended, not within 10 minutes of the start of Game 4.
What a selfish, self-centered you-know-what. This guy is a total and complete goofball. Sure his stats are fearsome, but he has never won at any level a championship. He had great numbers on flailing Seattle Mariner and Texas Ranger teams, but both rarely played .500 ball. After four seasons with the Yankees, Mr. No-October has taken the chicken's way out. The attempt to upstage the Red Sox and Rockies should not be forgiven nor forgotten by the baseball brethren.
This guy comes to New York and played next to Derek Jeter -- a real ball player. Jeter will never hit the home runs that A-Rod does -- Jeter has 195 career home runs in 12 seasons, compared to Rodriguez's 500 and some. But Jeter has won more games than A-Rod ever will. Derek Jeter may be one of the most clutch players and hitters to ever play the game. Jeter may go 0-4 in a game but make a diving stop at shortstop to kill an opponent's rally. Jeter may get the stolen base at the right time to start a rally: Jeter will sacrifice himself and hit the ball to the right side to move a teammate. Bottom line, Jeter is the complete player. With him, it's all about team.
With A-Rod -- it's all about him. In the playoffs, Rodriguez has been a total and miserable failure. Jeter is clutch. In the playoffs, year-in and year-out, Derek Jeter is the toughest out. Rodriguez is 0-18 in the playoffs with runners in scoring position: the ultimate barometer.
A-Rod ditches Yankees' $252 million contract: Where to now?
The Boston Red Sox won the World Series last night, so what is the baseball world buzzing about today? In the same way that the antics of train wrecks like Britney Spears steal headlines away from others with worthy accomplishments, we are writing about the Yankees and their messy divorce from future Hall-of-Famer Alex Rodriguez. Yesterday, A-Rod's agent, Scott Boras, announced that the third-sacker would take his option to terminate his 10-year, $252 million contract early and put himself up for auction.In the typical classy Yankee way, Steinbrenner the Lesser, Hank, took the opportunity to blast the player, telling the New York Daily News, "He doesn't understand the privilege of being a Yankee on a team where the owners are willing to pay $200 million to put a winning product on the field."
After years of being crucified by the New York press, fans and front office for failing to hit enough to overcome a minor-league starting rotation and a gaggle of overpaid, over-aged teammates, who wouldn't want out?
The question now is who will step forward to pay A-Rod more than his previous contract? No other team enjoys the Yankees' attendance or media income. Fortunately, we're not talking Wall Street, but baseball, and business economics are not its forte. Remember that A-Rod signed his huge contract with Texas, who, when they came back to their senses and realized they couldn't cover that salary, were forced to deal him to New York while agreeing still to cover part of his salary.
Boras, known as the superagent, is too shrewd to make such a move without confidence that a least a couple of teams will contend to sign the best player in baseball. The Chicago Cubs could use his talents, although last year's signing of Alfonso Soriano tied up a lot of Chicago's cash. The Cubs could also go on the block soon, as well, and a lot of debt might not help that.
Continue reading A-Rod ditches Yankees' $252 million contract: Where to now?
Joe Torre rejects Yanks' offer
To those of you sitting at home who often think you can manage your favorite baseball team better than those actually in charge -- a position just came open. On the heels of the New York Yankees bowing out in the first round of post-season play -- again -- Joe Torre has parted ways with the legendary club, but on his terms. Instead of being dismissed, as many fans and sports analysts were anticipating, Torre was actually given the option of a one-year contract carrying a price tag of $8 million (including incentives).
But the former Yankees skipper -- who held the title for 12 years and ranks second in the club's history for number of wins (at 1,173, trailing only Joe McCarthy) -- met Thursday afternoon with Yankee general manager Brian Cashman and owner George Steinbrenner to turn down the offer.
Will the World Series be a home run for Rupert Murdoch?
News Corp. (NYSE: NWS) Chief Executive Rupert Murdoch is probably too busy plotting world domination to spend much time worrying about something trivial like baseball -- until now.
America's pastime is about to start post-season play, most of which will be televised on the company's Fox television network. Already, there was one huge surprise as the Philadelphia Phillies overtook the New York Mets to win the National League East. But this isn't the type of surprise that the media mogul probably likes because a team from a smaller media market beat one from a larger one.
Remember that last year's series between the St. Louis Cardinals and Detroit Tigers had record-low television ratings. Advertisers pay a premium price for television spots on the World Series because of the huge audience it attracts. Fox probably has guaranteed that the commercials will be seen by a set amount of viewers and must refund money to advertisers if these targets aren't hit.
Continue reading Will the World Series be a home run for Rupert Murdoch?
Disney, Comcast, Time Warner may bid for Yankees TV network
Walt Disney Corp. (NYSE: DIS), Comcast Corp. (NASDAQ: CMCSA) and Time Warner Inc. (NYSE: TWX) may be tempted to pick up the Yankee Entertainment & Sports Network, the cable TV channel that broadcasts the baseball team's games which Bloomberg News said could be worth as much as $2 billion.
The channel, whose owners include Goldman Sachs Group Inc. (NYSE: GS) and former New Jersey Nets owner Raymond Chambers, is "running a limited check" and would only consider selling if it got a price "reflecting its real value," spokesman Peter Rose told Bloomberg. Funny guy to be quoted in a baseball story. I guess anything is for sale at the right price. What an original concept.
It will be an interesting test of wills between Disney's ESPN and Comcast. ESPN remains a juggernaut for the house that Mickey built. Comcast is trying to challenge ESPN with its Comcast SportsNet channels including the one I watch in Philadelphia that broadcasts Phillies games.
Remember, we're talking about the Yankees here, one of the most recognized though not necessarily loved franchises in baseball. New Yorkers, though, continue to love their Bronx Bombers even though they have struggled this year.
But the time the YES network is sold, however, slugger Alex Rodriguez will have left the Big Apple for parts unknown. With $2 billion in the bank, I'm sure the team could afford to replace him.
Is Roger Clemens a good investment?
What lessons can investors learn from the return of Roger Clemens to the Yankees next week, possibly against the Boston Red Sox? Plenty.
Like great investors, great baseball executives know where to find value. On the face of it, spending lots of money on a 44-year-old pitcher seems like a poor investment. But this isn't just any player. Clemens has already won 348 games, along with seven Cy Young Awards, making him one of the best to ever play the game.
The Yankees are going to pay him an astounding $4.5 million per month for four months work. That works out to about $9,000 per pitch regardless whether they are balls or strikes. Sure is nice work if you can get it, but is Yankee owner George Steinbrenner going to get his money's worth from Clemens? They have to reach the postseason, period.
The Bronx Bombers faced a double-digit deficit to the Red Sox last weekend, before rebounding slightly. They've been forced to start a record seven rookies in the team's first 42 games, so adding Clemens surely will be a welcome injection for the decimated starting staff.
Goldman Earnings Sink After Buffett Dividend
Johnson & Johnson's Income Falls 23%
Burberry Shares Leap on Sales Update
