January 3, 1973. A Cleveland shipbuilder named George Steinbrenner put together a 12-member ownership group, wrote a personal check for $168,000, and bought the New York Yankees from CBS for $10 million. CBS had paid $11.2 million for the franchise in 1964 and somehow managed to sell it at a loss nine years later. (That takes a special kind of mismanagement.) Steinbrenner's $168,000 -- less than 2% of the purchase price -- would eventually become worth billions.
The most consequential ownership change in American sports history cost less than a decent house.
The CBS Disaster
CBS bought the Yankees at the worst possible time -- right as the dynasty was crumbling. The club had won five straight pennants from 1960 to 1964, but the roster aged out fast. Under CBS's corporate stewardship, attendance dropped, the farm system dried up, and the front office operated with all the urgency of a quarterly earnings call. The franchise that defined winning in baseball spent the late 1960s and early 1970s losing, and nobody in charge seemed to mind enough to fix it.
By 1972, the Yankees hadn't been to the postseason in eight years. CBS wanted out.
The Purchase
Steinbrenner didn't come from baseball. He ran the American Ship Building Company out of Cleveland, and his only previous sports ownership experience was the Cleveland Pipers of the defunct American Basketball League in the early 1960s. (The Pipers went bankrupt. An auspicious start.) But he had money, ambition, and a conviction that the Yankees could be restored to what they'd been.
The ownership group included names like John DeLorean (the car guy, yes -- before the cocaine bust), Texas oil magnate Nelson Bunker Hunt, the Nederlander theater family, and several Cleveland-area businessmen. Steinbrenner was the managing partner, the loudest voice, and -- despite his tiny financial stake -- the unquestioned boss from day one.
"I Won't Be Running the Show"
Steinbrenner held a press conference after the purchase and delivered a line that aged like milk left on a radiator. He told reporters he'd focus on his shipbuilding business and leave baseball operations to the baseball people. Ralph Houk would keep managing. Lee MacPhail would keep running the front office.
That pledge lasted about six weeks. By spring training, Steinbrenner was ordering players to cut their hair. The grooming policy -- no beards, no long hair, nothing below the collar -- became one of the franchise's most recognizable cultural markers. It stuck around for over 40 years. His hands-off approach didn't make it to Opening Day.
The 1973 Diagnostic
The season that followed gave Steinbrenner his blueprint. The Yankees started 45-33 and held a four-game lead on July 1, then collapsed to finish 80-82. Bobby Murcer carried the offense, Thurman Munson won a Gold Glove, and the pitching staff fell apart. Steinbrenner watched an 80-win team with a thin roster play its final game at the original Yankee Stadium on September 30, then saw Houk resign and MacPhail leave for the American League presidency.
The whole operation needed gutting. Steinbrenner was happy to oblige.
The Rebuild
Gabe Paul arrived as general manager and became Steinbrenner's partner in reconstruction. Together they pulled off the trades that transformed the franchise -- Bobby Bonds to California for Mickey Rivers and Ed Figueroa, Doc Medich to Pittsburgh for Dock Ellis, Willie Randolph, and Ken Brett. Catfish Hunter came via free agency in 1975. Reggie Jackson signed after 1976.
The renovated Stadium reopened in April 1976 with a team capable of winning the pennant. They did. Then they won the World Series in 1977 and again in 1978. Six division titles in seven years. The franchise was back, and Steinbrenner -- the guy who promised to stay out of it -- was running every minute of it.
| Date | January 3, 1973 |
| Purchase Price | $10 million |
| Seller | CBS (owned since 1964) |
| CBS Purchase Price | $11.2 million (1964) |
| Steinbrenner's Stake | $168,000 (< 2%) |
| Ownership Tenure | 1973--2010 (37 years) |
| World Series Titles | 7 (1977, 1978, 1996, 1998, 1999, 2000, 2009) |
The Purchase
Steinbrenner's group buys the Yankees from CBS for $10 million. Steinbrenner's personal investment: $168,000.
The Hair Policy
Steinbrenner orders players to cut their hair and shave, establishing the franchise grooming standard that lasted over four decades.
Management Overhaul
Ralph Houk resigns as manager after the final game. Lee MacPhail departs for the AL presidency. Gabe Paul takes over as GM.
First Pennant
The Yankees win their first pennant under Steinbrenner, reaching the World Series for the first time since 1964.
First Championship
Reggie Jackson hits three home runs in Game 6 as the Yankees win their first World Series title under Steinbrenner ownership.
Frequently Asked Questions
How much did George Steinbrenner pay for the Yankees?
The total purchase price was $10 million, split among a 12-member ownership group. Steinbrenner's personal investment was just $168,000 -- less than 2% of the total. CBS had paid $11.2 million for the franchise in 1964, meaning the team sold at a loss after nine years of corporate ownership.
Who owned the Yankees before Steinbrenner?
CBS (Columbia Broadcasting System) owned the Yankees from 1964 to 1973. Under CBS's corporate stewardship, the franchise declined sharply -- missing the postseason every year and finishing with losing records in multiple seasons.
When did Steinbrenner's hair policy start?
Steinbrenner imposed the grooming policy during spring training 1973 -- his first spring as owner. Players were required to keep their hair above the collar and could only have mustaches (no beards). The policy remained in place for over 40 years.
How many World Series did Steinbrenner's Yankees win?
Seven. The Yankees won the World Series in 1977, 1978, 1996, 1998, 1999, 2000, and 2009 during Steinbrenner's 37-year ownership tenure (1973--2010). They also won 11 pennants during that span.
Steinbrenner ran the Yankees for 37 years. He fired managers, signed superstars, fought with everyone, got suspended twice, and turned a franchise he bought for $10 million into the most valuable team in baseball. It all started with a handshake, a press conference, and a promise he never intended to keep.