Every year on January 3rd, I get this email from mega-Yankees fan Jack. He likes to remind us of the rich history the NY Yankees have. Specifically, he likes to remind us of Babe Ruth.
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From: Jack Prilook
Sent: Wednesday, January 03, 2007 2:48 PM
To: Stephen Forte
Subject: On this day in New York Yankee History.
Jan 3, 1920. The Yankees purchase the contract of Babe Ruth from the Boston Red Sox for $125,000 and a $350,000 loan against the mortgage on Fenway Park.
On Jan 3, 1973 A group led by Mr. George Steinbrenner III buys the Yanks from CBS for $10 million.
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Jack
So who made out better, the Yankees or the Red Sox? Everyone thinks the Yankees since they won a gazillion World Series since and the Red Sox only won 1 and had Bill Buckner let the ball go through his legs in 1986. Putting aside the 26 World Series rings for a moment, let’s look at the numbers.
While Yankees fans like to claim the Curse of the Bambino, I'll call it Supply Side Economics.
Yankees had more money and spent it well. Considering the Per Capita GDP of the World Economy in 1920 was a mere $965, the Yankees spent more money than God to bring Babe Ruth to New York. Was it really such a bargain?
Adjusted for inflation Babe Ruth's contract was $1,375,000 and the loan against Fenway was at $3,850,000. That is $5,225,000 spent for the privilege of paying someone (Babe Ruth) $110,000 a year (or $10,000 in 1920 dollars.)
Babe Ruth played on the Yankees for 14 years. In that time the Yankees made the playoffs 7 times and won 4 World Series. We are going to ignore the annual contract figures for two reasons, one is that they would have to pay the market price anyway for a star player, and two we are only concerned about the contract that they purchased since it is the legend and quote we hear about all the time.
So, for a $5.2 million investment the Yankees netted 4 World Series in seven appearances over 14 years with Ruth. Contrast that to Derek Jeter who came up through the Yankees’ farm system. The Yankees drafted Jeter in 1992 and paid him $700,000 or just a hair over $1 million in today's dollars. So for a $1 million investment, the Yankees won 4 World Series in 11 appearances over 11 years. That is $250,000 a World Series Ring with Jeter vs over $1.3 million for Ruth.
All you naysayers who think I am not fairly comparing Ruth and Jeter, Jeter has 100% playoff appearances at 11 to Ruth’s 50% at 7. Back then it was actually *easier* to make the playoffs, all you had to do was win the division to make the World Series. (The NLCS and ALCS were introduced in 1969 with divisional play.) Based on that statistic, if Jeter’s stats are extrapolated to Ruth’s, Jeter would statistically have won 6 World Series since in 10 years the Yankees have won the American League East 10 times and by 1920s rules, would have went to the world Series 11 times.
So the Yankees should start to celebrate June 1st, 1992, instead of January 3rd, 1920. That was the day Jeter was drafted by the Yankees. I'll expect an annual email from Jack. I created an Outlook reminder on May 30th to remind him.
Funny, all this from a Mets fan who hates Jeter. J
Posted By Steve in New York.