Yankees Swing for the Fences With Jersey Patch Deal

In today’s edition of the Front Office Sports newsletter, we’re taking a look at a potential new deal for one of the world’s most popular sports franchises.

New Opportunity

MLB will begin allowing teams to sell space on their uniform sleeves for the first time in the 2023 season — and the New York Yankees are ready to strike a deal.

The Bronx Bombers have recruited Legends to manage the search. The Yankees, who own a stake in Legends, are reportedly looking to sign a multiyear deal. 

It’s unclear how much the 27-time World Series champs are looking for, but it won’t be cheap. Forbes last valued the Yankees at $6 billion — the second-most valuable franchise in the world and a big hike from MLB’s average of $2.07 billion. On top of that, the team hasn’t sold the naming rights to the iconic Yankee Stadium.

“I would characterize the investment as a top-tier naming rights-type investment,” Chris Hibbs, president of Legends’ Global Partnerships division, said.

MLB could reportedly generate between $350 million to $400 million per year through the teams’ jersey patch deals — averaging $13.3 million per franchise. In 2021, MLB brought in $1.13 billion in corporate sponsorships.

Legendary Service

The Yankees and the Dallas Cowboys founded Legends in 2008 and still collectively own more than 40% of equity.

• The company’s initial focus was on concession operations and retail merchandising within their stadiums. 
• Since expanding to include hospitality and sponsorships, the company reached a $1.3 billion valuation after investment firm Sixth Street acquired a majority stake last year.

Legends launched its Global Partnerships division in February 2020 and lists SoFi Stadium, Allegiant Stadium, and the University of Notre Dame among its clients.

Conversation Starters

• NBA commissioner Adam Silver said the league posted a record year for revenue with the 2021-22 season, topping $10 billion for the first time.
• Hear about the day’s most important business of sports stories in five minutes or less by listening to our daily podcast The Leadoff.
• NFL Hall of Fame quarterback Steve Young and longtime business partner Rich Lawson have raised $6.8 billion across four funds.
• Riot Games has found the owner of affiliate esports team Team SoloMid guilty of violating company policy relating to harassment and hate speech.
• The South Atlantic Conference has signed a five-year agreement with broadcast streamer FloSports in a deal worth seven figures, sources confirmed to FOS.

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