Mike Francesa says he knows where Hal Steinbrenner’s money is buried.
In a scathing rant, the Hall of Fame New York radio host alleged on his eponymous podcast Tuesday that Steinbrenner’s Yankees make even more money than the owner has said in recent days.
“What was Hal thinking? I am shocked,” Francesa said, referring to Steinnbrenner’s latest comments, where he said “of course” it would be ideal to lower payroll, while adding it’s not fair to assume the franchise made a profit last year despite a record $700 million revenue.
“He always gets questions about the payroll. I’m even surprised he would say that he would like the payroll to be lower because that sends off all the bells and whistles [with Yankee fans]. But to get into whining about a payment that actually saves him money in property taxes.”
Francesa is referring to Steinnbenner’s complaint about a payment that is owed on Yankee Stadium every Feb. 1, where the team pays $100 million to New York City.
The radio host isn’t buying the initial $700 million figure anyway because of what may lie beneath the surface.
“[Seven-hundred million], and this is after they try to hide everything,” he said. “Remember, how many holding companies do the Yankees have? Listen, I don’t want to get into all of this stuff, but let’s be honest, Hal opened Pandora’s box. Owners would rather jump out of a building than ever let anybody order their books. They will never let anybody near their books. Why? Because they would sing a very interesting tune.”
Francesa adds that the Yankees are worth over $8-9 billion and that if the Steinbrenners want to sell the team, others will be “lining up to buy them.”
“Do you know how many holding and different companies the Yankees have? The idea that the Yankees don’t make money, I’m surprised he could actually say it with a straight face,” Francesa said. “You’re going to plead poverty?
Francesa points out that there are holding companies involved with the Yankees, which is rooted in fact, but the allegations that the Yankees are hiding revenue at a business level is speculative.
The Yankees franchise is owned by parent company Yankee Global Enterprises, LLC (YGE), which has subsidiary entities and companies like YES Network, Legends Hospitality, NYCFC, and AC Milan.
Because YGE is a privatized company, any other smaller subsidiary companies that may not exist do not need to be disclosed to the public.
Francesa adds that the Yankees are doing quite well despite Steinbrenner’s comments.
Hal Steinbrenner leaving the MLB owners meetings. Corey Sipkin for the NY POST
“The idea that they aren’t tripping over the money they make is an absolute joke,” Francesa said before continuing his rant about how, in theory, a company or team can cover up larger earnings.
“Think about all of the little tricks you can play. You can basically do a lot of different things when you own something. All of these different holding companies. All of the expenses that you can run through the franchise. And run loans against the franchise, divvy that money up and then pay it off with revenues. There are a thousand different things [you can do].”
This comes as free agency and the winter hot stove are beginning in baseball, where the Yankees have several key decisions to make, including their plan to bring back star outfielder Cody Bellinger.
General manager Brian Cashman offered fellow outfielder Trent Grisham the qualifying offer of $22 million, which he accepted in a surprising move to some.
That move perhaps serves as the backdrop of a potential slow offseason despite the Yankees needing to fill many holes to close the gap between themselves and the back-to-back champion Dodgers — as well as the Blue Jays who dominated the Yankees in the ALDS and pushed Los Angeles to seven games in the World Series.
“The Dodgers have made the Yankees look like an A-Ball outfit,” Francesa said. “They have allowed, and George [Steinbrenner] would have never allowed this, to take what the Yankees used to do. The Yankees ‘We are bigger. We are better. We spend more. We shop at Tiffany’s. We buy the best. We are the best.’ That’s how the Yankees acted … They don’t act that way anymore. Now they’re satisfied when they make the playoffs. Why? Because their stadium is full. And their signage is up. And the sponsors are buying the signage. And the luxury boxes are rented. That’s how they judge the season.
“Donkeys will fly before anyone ever sees the Yankees’ books,” Francesa concluded, after suggesting that an independent auditor come in and prove that the team doesn’t make money.