The Economics Of Deter Jeter: Past, Present And Future

Feb 13 2014, 3:02am CST | by

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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