XM MLB Chat: With Goldman Sachs awash in cash, time is right to buy the Yankees

(Mr. Steinbrenner and Dallas Cowboys' Jerry Jones on Legends hospitality partnership with one third owner Goldman Sachs, Sept. 2008). photo from dividend.com

Fascinating that as the world suffers, Goldman is experiencing their best year ever along with the mysterious disappearance of
competition.

They're already deeply involved with the Yankees and the YES network (40% owners), so now might be a good time for them to buy the team and give it some direction. Goldman Sachs was even mentioned as a possible source of cash to finance Arod's salary during negotiations in 2007. (If they like Arod so much, why fool around, why not take ownership of him through 2017?)

11/15/07, CNBC, "A-rod/Yankee Talks: What Part did Goldman Sachs Play," Goldman owns 40% of the YES Network. by Darren Rovell

10/20/08, Reuters, "Yankees, Cowboys, and Goldman form sports services company" Legends Hospitality

10/20/08, Dallas Morning News, "Gerald Cardinale of Goldman Sachs, who has worked with the Yankees and their YES Network, first pitched the idea more than a year ago."..."Cowboys, Yankees, form company for new stadium," by Rachel Cohen

3/16/09, Goldman Sachs leads group loaning $105 million to cover final cost overruns at new Yankee Stadium, Sports Business Journal, "Yankees get new Loan for Ballpark," by Daniel Kaplan

8/3/07, NY Times: Gerald Cardinale, managing director of Goldman Sachs and YES Network board member: ""Any new financial partners, he added, “will want a partnership with the Yankees about how the games are broadcast.”" "Yankees' YES Network stake not for sale," article by Richard Sandomir

11/20/07, Reuters, YES Network sale stalled in part by A-rod negotiations. "NY Yankees Network sale stalls as A-rod Deal Looms." Article notes subscriber fees wouldn't be affected but loss of more than one star could affect advertising revenue.

This isn't to say anything positive about Goldman Sachs except that as owner of the Yankees they might hire the right people to run the team. Or even the right people to run the YES Network. I do not assume anyone in investment banking or hedge funds has a conscience-or is even smart. But the Yankees need new ownership if they want to be a championship team. (sm)

On Goldman Sachs' banner year:

From Guardian UK, 6/21: ""This year is shaping up to be the best year ever for investment banks, or at least those that have emerged relatively unscathed from the credit crisis....