For Sale: Yanks' Cable Network

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The Yankees’ YES cable network is on the block, reports Fortune‘s Tim Arango, and its owners (the team, Goldman Sachs and former New Jersey Nets owner Ray Chambers) are looking for $3 billion to $3.5 billion. No word on what buyer might be in the running, but Fortune does back-of-the-envelope maths: The network is generating estimated cash flow of $136 million and regional sports networks go for 19 times cash flow. Factor in 8% growth and $3 billion seems reasonable.

Oh, and the Yankees themsleves may also be for sale, too. George Steinbrenner’s health isn’t great, and there’s speculation that team may be put on the block soon. But it will command much less than the cable business – perhaps only a billion or so (that price tag assumes the sellers hang onto their YES stake). Fortune

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