- Australia court strikes down 5-day-old, gay-marriage law
- Fake interpreter at Mandela service: ‘Sorry,’ I have schizophrenia
- George Zimmerman will not be charged in domestic dispute
- Russian officials press bilateral U.S. trade deal
- Creator of ‘Selfies at Funerals’ blog retires after Obama flub: ‘Our work here is done’
- New Obama adviser Podesta is against Keystone but will steer clear of pipeline deliberations
- 40 Australian adults, children found in ‘one of the worst accounts of incest ever made public’
- Venezuela’s Maduro calls on student ‘price vigilantes’ to hit the streets, report businesses
- Atheists smug as Hindus join Satanists to demand display at Oklahoma Statehouse
- Bow before Valkyrie, NASA’s ‘superhero robot’ entry in DARPA challenge
News Corp. acquires stake in Yankees’ Yes Network
Question of the Day
Yankee Global Enterprises, Goldman Sachs and other investors will reduce their ownership as part of the transaction, and the team will receive a payment of $500 million for agreeing to the transaction.
“The Steinbrenner family expects to have a continuing, long-term ownership stake in the YES Network and we will continue our yearly commitment of fielding a championship caliber team for decades to come,” Yankees managing partner Hal Steinbrenner said in a statement.
The agreement values the YES Network at $3 billion now and $3.8 billion when News Corp. decides in three years whether to increase its stake. The Yankees also committed to stay on YES Network through 2042, subject to approval of the deal from Major League Baseball. The Yankees‘ existing agreement with YES runs through 2021 and the network has three five-year options.
News Corp., which owns Fox, may acquire an additional stake in the YES Network after three years that could bring its ownership to 80 percent. Yankee Global Enterprises would retain a significant minority stake.
Fox will make a $500 million payment to the Yankees for extending their broadcast rights, of which $300 million will be paid when the deal with News Corp. closes and $200 million in about three years, a person familiar with the situation told The Associated Press, speaking on condition of anonymity because some details of the pact had not been made public.
YES’s fee to the Yankees, which was $85 million this year, was due to compound at 4 percent annually under the options in the old contract. Under the new deal, the rate will increase gradually to 7 percent in the final years of the rights agreement, and YES’s annual payment to the team will rise to about $300 million by 2042.
“We’ve long been a believer in the unique appeal of sports entertainment,” News Corp. deputy chief operating officer James Murdoch said in a statement.
“This is a tremendous opportunity to enhance News Corporation’s industry-leading portfolio of sports properties, while also strategically re-entering the New York market,” he added.
YES currently is owned by the Yankees, Goldman Sachs, Providence Equity and NJ Holdings, the company controlled by former Nets owners Louis Katz and Ray Chambers. By closing the deal this year, they would avoid any possible increase in capital gains taxes in 2013.
Rupert Murdoch’s News Corp. is emerging from the phone hacking scandal in Britain. The company is in the midst of a plan to split into two parts _ one housing its newspapers, Australian operations and for-profit education business, and the other its more profitable TV and movie businesses.
Fox Sports Media Group already owns 20 U.S. regional sports networks. With Fox’s investment in the Big Ten Network and Rutgers’ plans to join the conference, this deal could help get the college sports channel into more homes in the New York area.
YES Network, which also broadcasts Brooklyn Nets games, launched in 2002. It has approximately 9 million subscribers in the New York area among about 15 million nationally.
AP Sports Writer Rachel Cohen contributed to this report.
By Matt Kibbe
The short-term deal will assure long-term overspending
- Rand Paul: Budget deal 'shameful,' 'huge mistake'
- All-out war breaks out in GOP over budget pact
- Teen thugs in D.C. run wild -- even while wearing GPS ankle bracelets
- Obama takes 'selfie' at Mandela's funeral service
- Obama's antics at Nelson Mandela tribute: Jovial conversation, handshake with Raul Castro
- American bourbon now better than Scottish whisky: U.K.-born expert
- U.S. pilot scares off Iranians with 'Top Gun'-worthy stunt: 'You really ought to go home'
- Biden guarantees victory on immigration reform
- Study IDs reasons for late-term abortions
- Inside the Ring: China targets Global Hawk drone
Independent voices from the The Washington Times Communities
Al Maurer provides a common sense, conservatarian, Constitutional conservative perspective from the battleground state of Colorado
Interviews and show reviews from the Los Angeles punk scene past and present. Los Angeles has always been rich in punk rock talent since punk rock was born.
Buzz on Bees is a column promoting the love and life of God’s greatest pollinators on earth: The Honeybee
Brazen, leading-edge, “call it like it is” columns and reporting from Ohio native, radio host and writer, Sara Marie Brenner.
Extraordinary day at Redskins Park
White House pets gone wild!
Let it snow