Advertisement

Archive for Sunday, July 30, 2000

New TV deal would make Yanks richer by $838 mil

July 30, 2000

Advertisement

— The New York Yankees would receive $838 million for their TV rights in the next 10 years under a proposed deal with a division of the International Management Group.

The Yankees and IMG's Trans World International subsidiary would form a new cable network to carry the team's games, and the Yankees would own 95 percent with TWI owning 5 percent.

The fee would start at $65 million next year and escalate 7 percent yearly to $119.5 million in 2010, giving the Yankees, who have won three of the last four World Series, even more money to increase their payroll.

Madison Square Garden has sued to block the Yankees from forming the new network, claiming it violates MSG's rights to match any offer, a provision in the $486 million, 12-year contract between the Yankees and MSG that expires after this season.

A hearing on MSG's request for an injunction to block the deal is scheduled for Monday before New York Supreme Court Justice Barry Cozier.

Former MSG head Bob Gutkowski has sided with the team in the dispute.

"At no time did I believe (nor do I now believe) that the Yankees Partnership was somehow forbidden from forming a new network in which the Yankees Partnership would hold the sole, or any equity stake, and on which the Yankees' games would be televised," Gutkowski said in an affidavit signed July 24 and obtained by The Associated Press.

Commenting has been disabled for this item.