Feb 13 2014, 3:02am CST | by Forbes
Though the writing was on the wall given an injury-plagued 18th season in the big leagues in 2013 at the age of 39, Wednesday’s news that 2014 would be Derek Jeter’s last as a New York Yankee and MLB ballplayer gives one pause to think about the economics associated with Mr. Jeter. Both in the past, the present, and the future.
By the numbers:
- $265 million……Mr. Jeter’s career gross earnings in salary with the New York Yankees including his 2014 salary;
- $8.1 million…….Mr. Jeter’s estimated endorsement income in 2013;
- $63.6 million…..Mr. Jeter’s estimated endorsement income since 2007 alone;
- $2.06 billion…..The nominal growth in the Yankees franchise value from 1996 (Jeter’s first year in the league when the team was valued at $241 million) to 2013 (when Forbes’ estimated the team’s worth at $2.3 billion);
- $1.94 billion…..The real growth in the Yankees franchise value since 1996. Jeter isn’t responsible for all of this growth, but if he is responsible for 14% of this growth then that amount alone ($272 million) would exceed the earnings the Yankees have paid him over the years;
- $14.58…………..Average face value price of a Yankees home game in 1996;
- $51.55…………..Average face value price of a Yankees home game in 2013;
- $1,153…………..The average secondary price for Jeter’s last game versus the Boston Red Sox at Fenway Park. This average was quoted at 5:30 PM ET Wednesday, 278% higher than the average secondary price 3 1/2 hours earlier;
- $290.20………..As of late Wednesday night, the cheapest ticket on StubHub for what would be Jeter’s last regular season home game as a Yankee. Comparatively, the cheapest seat on StubHub for the St Louis Cardinals final home game of the season is $18.50.
However you slice it, Derek Jeter has had a tremendous financial impact on his team. For it, he’s been handsomely compensated both on and off the diamond.
Patrick is an Economics Professor at the George Herbert Walker School of Business and Technology at Webster University in St Louis, MO, and the Founder/Director of Sportsimpacts. Follow him on Twitter.
Source: Forbes Business
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