With all of the cash the Yankees forked out this offseason, it’s hard to believe that they lost their first game of the season on Monday to the Baltimore Orioles. The $161 million spent on starting pitcher CC Sabathia didn’t seem worth much after the team’s 10-5 loss.

This was supposed to be a solid pitching rotation, at least four-deep with Sabathia, Burnett, Pettitte and Wang, plus Rivera closing. So, was it A-Rod’s absence that caused the team to falter? Or could it be the number of past-their-prime players? Or did the boys of summer just simply have a weak opening game?

Despite the economic upheaval in the US, the Yankees have managed to spend over $200 million on their payroll this season. After all, splurging is what the Yankees are good at.

The recession doesn’t seem to have affected the team, who have signed three big-name (and big-time expensive) free agents to their roster: former Blue Jay AJ Burnett, Cleveland Indian CC Sabathia, and Los Angeles Angel Mark Teixeria. Together, the trio cost a whopping $423.5 million.

On top of the payroll expenditures, the Yankees have also invested $1.5 billion into a brand new stadium; a venue which players and fans alike have been raving about. However with all of their spending, the big-budget Yankees have apparently aggravated several other teams in the MLB, prompting calls for a baseball salary cap.

What critics are failing to recognize is that their overall payroll actually saw a significant decrease – a decline of about $7 million from last year.

This is due in part to the elimination of expenses like Bobby Abreu, Jason Giambi, and Mike Mussina. Also, the new contracts are spread out over an eight year time period, lessening the direct impact of the buys.

The new stadium is also expected to bring in more revenue than the old one – with the addition of 32 new luxury-box suites priced between $600,000 and $850,000, and the franchise’s single largest source of revenue: its ticket sales. The Yankees will also receive a huge break on MLB revenue sharing because the new stadium and its respective debt payments are all deductible from the $100 million revenue payment.

Additionally, royalties from the YES network earn between $65 and $75 million, and an equivalent amount comes from sponsorships and advertisers.

It is essentially quite difficult to determine the profit or loss of the Yankee franchise because the team is a division of Yankees Global Enterprises. The enterprise is a private holding company with assets and stakes in alternative business outlets, so really the holding company could be operating at a profit even if the team is not.

Last year the Yankees finished 3rd in the AL East – the first time in 13 years they missed the postseason. It would appear that the Yankees are trying to buy themselves an AL East pennant this year, or at least a wild card spot. But really, who can blame them being in the division that they are. The American League East consists of long-time rivals Boston, reigning AL champions Tampa Bay, Toronto and Baltimore.

The Rays seem to be following suit in regards to spending, with an increased payroll of about 50% (though their total spending is comically lower than that of the Pinstripes). They’re hungry for a win this year, have the hard work, drive and determination, and are out to prove that last season was more than just a slip of fate.

Payroll increases are not common across the board though. Fourteen of the 30 teams in the league will actually have a lower opening-day payroll than last season; and of those 14 teams, ten are cutting their budget by over $10 million.

In the end, it cost a pretty penny to put these guys in pinstripes, but I think New York made a wise business investment.