Speculation On Yankees Flagship Radio Station

With Yankees radio deal with WCBS-AM entering final year, ESPN-1050 & others
could enter the bidding. The offseason didn't produce major changes for the
Yankees, but as spring training approaches, Bombers brass is contemplating
an off-field switch. The Yankees are entering the final year of their radio
contract with WCBS-AM. John Sterling and Suzyn Waldman will open things up
on Feb. 26 calling the Phillies-Yankees exhibition game. The radio industry
is struggling. That doesn't mean the Bombers' won't have options if they are
seeking a new radio partner. WCBS-AM, the radio home of the Yankees since
2002, currently pays $13 million per year for the Bombers radio rights.
That's big moolah for a baseball radio deal, but not tops in Major League
Baseball. That distinction belongs to the Red Sox who are pulling down $18
million per for their radio rights. The Yankees probably are looking for Red
Sox-like money. Considering the state of the economy in general, and the
radio business in particular, they will be lucky to get a slight increase
from WCBS-AM unless, of course, there's a "desperate" radio outlet looming.
Like most rights-fee negotiations, the incumbent station has an "exclusive"
bargaining period. If an agreement is not reached on a new contract with
WCBS-AM before that "exclusive" window closes, other outlets can bid.
ESPN-1050 will be a player for Yankees rights. It could play the role of the
"desperate" outlet. Acquiring Yankee baseball would instantly fill a huge
void for a station hustling for ratings, bringing it higher visibility from
a vast audience that has no idea ESPN-1050 even exists. A 1050 partnership
with the Yankees would instantly turn up the competitive heat on WFAN, home
of the Mets, by increasing - probably significantly - 1050's ratings.
There's a major stumbling block for ESPN-1050 - its weak signal. Two Dixie
Cups attached by a string is a powerhouse by comparison. Seriously though,
Yankees brass probably doesn't want its games airing on a station with -
literally - no juice. ESPN can alleviate the problem by purchasing a station
with a strong signal. Industry sources say ESPN has shown interest in buying
RXP 101.9, an FM station owned by Emmis Communications. Emmis was asking
$125 million for the station, but the price has apparently dropped to $100
million. If ESPN does not acquire a station with a big-time signal, but
comes in with the highest bid, would the Yankees decide to glom the money at
the expense of being stuck on 1050? That would be risky business,
potentially disastrous. In 2005, St. Louis Cardinals suits decided to buy
50% of KTRS-AM and move their games off powerhouse KMOX-AM. The Cardinals
wound up having to place games on five other stations in a failed attempt to
reach maximum listeners in the market. This season, the Cards are returning
to KMOX. There are other options for the Yankees. Radio spies say WABC-AM,
once the radio home of the Bombers, may be interested in bidding ("it's
unlikely, but possible" one radio mole said). The Yankees, like the football
Giants, could also take their radio rights in-house. That would mean buying
time on a station (with a strong signal) and selling advertising themselves.
With the Mets experiencing problems on and off the field, the Yankees could
look to cut a short-term deal with WCBS-AM with the promise of moving to
WFAN when the Mets contract expires. CBS owns both WFAN and WCBS-AM. There
could be a 'spoiler' out there, too," an MLB stoolie said. There are FM
stations in the New York market not doing well, but (they) still could bid.
That kind of gamble has everything to do with the power of the Yankees brand
that, for a struggling radio station, would be good for business.