Sportonomics: Uncovering the Business of How The Yankees' Jersey Patch Came To Be

The Yankees have just recently joined the growing list of MLB teams that have sold jersey space to advertisers. There isn't a challenge to argue that Yankees' pinstripe jersey is the most iconic uniform in American Sports or even globally. To Yankees fans, the new Starr Insurance patch defames the jersey's greatness and legacy. Let's analyze the business of it and how the deal came to be.

Starr Insurance Companies, an international company headquartered in the 646 area code will have a patch on the left sleeve of the Yankees’ jerseys. The company provides insurance to businesses and is an international insurance conglomerate. Starr claims it underwrites in 124 countries and six continents. According to their website, Starr was the first American-owned insurance company in Shanghai, China (in 1919) and today it offers coverage in different areas including energy, construction, aviation, and marine.

Yankees owner (chairman) Hal Steinbrenner said in a release that “We are extremely proud to welcome Starr Insurance as the Yankees’ first-ever Signature Partner.” He continues by affirming that “having had Starr as an insurance carrier of ours for the last decade and having worked closely with their leadership team as part of our pre-established partnership, it is clear that Starr is the right company to embark with on this landmark relationship.” Steinbrenner furthers by stating that "There were many aspects of Starr that aligned with our organization, including their century-plus history, significant New York presence, worldwide reach and unparalleled commitment to the community. My father (George Steinbrenner) was also well-acquainted with (Starr owner and chairman) Mr. (Maurice) Greenberg, whose devotion to philanthropy I deeply respect.” There is a sense that (in his statements) Steinbrenner tried to explain why he thought a jersey patch was necessary, demonstrating the unhappiness that the fanbase have and will feel. 

Now let’s go into the business of the deal between Starr and the Yankees. The cost for Starr was $25 million per year to get space on the Yankees’ jersey. Darren Rovell stated that other offers were higher but that the Yankees were more concerned about fit. The Yankees’ deal with Starr is reportedly through 2031. Sadly for (most) Yankees fans, the patch will be on both home and road uniforms. Generally the price for jersey patches will vary depending on the market and reach of the team. The Red Sox, for example, sold space for $17 million, while the Padres’ deal was for $9 million per year. While the jersey patch on the Yankees’ iconic jerseys may be unpopular with the fans, money talks…apparently more than the fans do for chairman Hal Steinbrenner.