The New York Yankees have signed free agent Mark Tixiera to an eight year $180 million contract.
Before this signing, the Yankees had already spent $243.5 million on two free agent pitchers, CC Sabathia and A.J. Burnett. The three off-season acquisitions by the Yankees come to $423.5 million.
The Yankees now have four of the highest contracts in all of MLB (Alex Rodriguez has the largest in all of baseball at $275 million over 10 years, while Derek Jeter is second at $189 million over 9 years, on top of the Teixeira deal and Sabathia deals). Those four have combined contract totals of a staggering $805 million, or $205 million more than the cost of the Mets’ Citi Field.
As with the concert industry, there are special considerations for the Yankees in that they are moving into a new stadium next year, which will mean added interest in the team, but again, if the Yankees were facing any type of significant pull back from the economic readjustment period, they would not be able to be paying out the phenomenal salaries they are.
Consumer type businesses simply have an edge in a readjustment period.
Yes, I think we are seeing consumption goods still being purchased and durable goods perhaps being delayed a year or two.
ReplyDeleteHow does ABCT fit with this piece of data: U.S. retailers' holiday sales plummet: Spending Pulse (http://news.yahoo.com/s/nm/20081225/bs_nm/us_usa_holidaysales_spendingpulse_1)
ReplyDeleteIt seems like both consumption & durable goods aren't being bought, and people are actually saving money for a rainy day or to pay off debt.
@ notgreat
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