New York Highlanders

The New York Yankees are an American professional baseball team based in the New York City borough of the Bronx. The Yankees compete in Major League Baseball (MLB) as a member club of the American League (AL) East division. They are one of two major league clubs based in New York City, the other is the National League (NL)'s New York Mets. The team was founded in when Frank Farrell and Bill Devery purchased the franchise rights to the defunct Baltimore Orioles (no relation to the current team of the same name) after it ceased operations and used them to establish the New York Highlanders. The Highlanders were officially renamed the New York Yankees in .

The team is owned by Yankee Global Enterprises, a limited liability company that is controlled by the family of the late George Steinbrenner, who purchased the team in 1973. Brian Cashman is the team's general manager, and Aaron Boone is the team's field manager. The team's home games were played at the original Yankee Stadium in the Bronx from 1923 to 1973 and from 1976 to 2008. In 1974 and 1975, the Yankees shared Shea Stadium with the Mets, in addition to the New York Jets and the New York Giants. In 2009, they moved into a new ballpark of the same name that was constructed adjacent to the previous facility, which was closed and demolished. The team is perennially among the leaders in MLB attendance.

Arguably the most successful professional sports team in the United States and one of the most highly regarded, the Yankees have won 19 American League East Division titles, 40 American League pennants, and 27 World Series championships, all of which are MLB records. The team has won more titles than any other franchise in the four major North American sports leagues, after briefly trailing the NHL's Montreal Canadiens in the 1990s. The Yankees have had 44 players and 11 managers inducted into the National Baseball Hall of Fame, including many of the sport's most iconic figures in history such as Babe Ruth, Lou Gehrig, Joe DiMaggio, Mickey Mantle, Yogi Berra, and Whitey Ford; more recent inductees include Mariano Rivera, and Derek Jeter, who received the two highest vote percentages of all Hall of Fame members. According to ''Forbes'', the Yankees are the second-highest valued sports franchise in the world, after the NFL's Dallas Cowboys, with an estimated value in 2022 of approximately $6 billion. The team has garnered enormous popularity and a dedicated fanbase, as well as widespread enmity from fans of other MLB teams. The team's rivalry with the Boston Red Sox is one of the most well-known rivalries in North American sports. The team's logo is internationally known as a fashion item, and as an icon of New York City and the United States.

From 1903 through the 2022 season, the Yankees' overall win–loss record is 10,602-8,000 (a winning percentage).

History

1901–1902: Origins in Baltimore

In 1900, Ban Johnson, the president of a minor league known as the Western League (1894–1899), changed the Western League name to the American League (AL) and asked the National League to classify it as a major league. Johnson held that his league would operate on friendly terms with the National League, but the National League ridiculed the plan. Johnson declared official major league status for his league in 1901.

Plans to add a team in New York City were blocked by the NL's New York Giants. A team was instead placed in Baltimore, Maryland, in 1901 named the Orioles. The Orioles were managed by John McGraw, who was also a part owner. After many personal clashes with Johnson, during the season McGraw jumped to become the new manager of the Giants, taking many players with him. The Orioles limped through the remainder of the season under league control, using a roster of players loaned from the rest of the AL clubs. The Orioles were disbanded at the end of the season.

In early 1903, the two leagues decided to settle their disputes and try to co-exist. At a conference, Johnson requested that an AL team be put in New York, to play alongside the NL's Giants. It was put to a vote, and 15 of the 16 major league owners agreed on it. The franchise was awarded to Frank J. Farrell and William S. Devery.

1903–1912: Move to New York and the Highlanders years

The team's new ballpark, Hilltop Park (formally known as "American League Park"), was constructed in one of Upper Manhattan's highest points—between 165th and 168th Streets in the Washington Heights neighborhood. The team was named the New York Highlanders. Fans believed the name was chosen because of the team's elevated location in Upper Manhattan, or as a nod to team president Joseph Gordon's Scottish-Irish heritage (the Gordon Highlanders were a well known Scottish military unit).

Initially, the team was commonly referred to as the New York Americans. The team was also referred to as the "Invaders" in the '' Evening Journal'' and ''The Evening World''. ''New York Press'' Sports Editor Jim Price coined the unofficial nickname Yankees (or "Yanks") for the club as early as 1904, because it was easier to fit in headlines.

The Highlanders finished second in the AL in 1904, 1906, and 1910. In 1904, they lost the deciding game on a wild pitch to the Boston Americans, who later became the Boston Red Sox. That year, Highlander pitcher Jack Chesbro set the single-season wins record at 41. At this time there was no formal World Series agreement wherein the AL and NL winners would play each other.

1913–1922: New owners, a new home, and a new name: Years at the Polo Grounds

The Polo Grounds, located on the shore of the Harlem River in Washington Heights, was home to the New York Giants of the National League. The Giants were inter-city rivals with the Highlanders, dating back to when Giants manager John McGraw feuded with Ban Johnson after McGraw jumped from the Orioles to the Giants. Polo Grounds III burned down in 1911 and the Highlanders shared Hilltop Park with the Giants during a two-month renovation period. Later, from 1913 to 1922, the Highlanders shared the Polo Grounds with the Giants after their lease with Hilltop Park expired. While playing at the Polo Grounds, the name "Highlanders" fell into disuse among the press. In 1913 the team became officially known as the New York Yankees.

In the mid‑1910s, the Yankees finished towards the bottom of the standings. The relationship between Farrell and Devery became strained due to money issues and the team performance. At the start of 1915, the pair sold the team to Colonel Jacob Ruppert, a brewer, and Captain Tillinghast L'Hommedieu Huston, a contractor-engineer. Ruppert and Huston paid $350,000 () with both men contributing half of the total price. After the purchase, Ruppert assumed the role of team president with Huston becoming team secretary and treasurer.

1923–1935: Sluggers and the Stadium: Ruth, Gehrig, and Murderer's Row

In the years around 1920, the Yankees, the Red Sox, and the Chicago White Sox had a détente. The trades between the three ball clubs antagonized Ban Johnson and garnered the teams the nickname "The Insurrectos". This détente paid off well for the Yankees as they increased their payroll. Most new players who later contributed to the team's success came from the Red Sox, whose owner, Harry Frazee, was trading them for large sums of money to finance his theatrical productions. Pitcher-turned-outfielder Babe Ruth was the most talented of all the acquisitions from Boston, and the outcome of that trade would haunt the Red Sox for the next 86 years, a span in which the team did not win a single World Series championship. This phenomenon eventually became known as the Curse of the Bambino, which was coined by writer Dan Shaughnessy in the 1990 book of the same name.

Ruth's multitude of home runs proved so popular that the Yankees began drawing more people than their National League counterpart, the Giants. In 1921 — the year after acquiring Ruth — the Yankees played in their first World Series. They competed against the Giants, and all eight games of the series were played in the Polo Grounds. After the 1922 season, the Yankees were told to move out of the Polo Grounds. Giants manager John McGraw was said to have commented that the Yankees should "move to some out-of-the-way place, like Queens", but they instead broke ground for a new ballpark in the Bronx, right across the Harlem River from the Polo Grounds. In 1922, the Yankees returned to the World Series again and were dealt a second defeat at the hands of the Giants. Manager Miller Huggins and general manager Ed Barrow were important newcomers in this period. The hiring of Huggins by Ruppert in 1918 caused a rift between the owners that eventually led to Ruppert buying Huston out in 1923.

In 1923, the Yankees moved to their new home, Yankee Stadium, which took 11 months to build and cost $2.5 million (). The team announced that 99,200 fans showed up on Opening Day and 25,000 were turned away. In the first game at Yankee Stadium, Ruth hit a home run. The stadium was nicknamed "The House That Ruth Built", due mainly to the fact that Ruth had doubled Yankees' attendance, which helped the team pay for the new stadium. At the end of the season, the Yankees faced the Giants in the World Series for the third straight year and won their first championship.

In the 1927 season, the Yankees featured a lineup that became known as "Murderers' Row", and some consider this team to be the best in the history of baseball (though similar claims have been made for other Yankee squads, notably those of 1939, 1961 and 1998). That season, the Yankees became the first team in baseball to occupy first place every day of the season, winning 110 games. The team also swept the Pittsburgh Pirates in the World Series. Ruth's home run total of 60 in 1927 set a single-season home run record that stood until it was broken by Roger Maris in 1961, although Maris had eight additional games in which to break the record. Meanwhile, first baseman Lou Gehrig had his first big season, batting .373 with 47 home runs and 175 runs batted in (RBI), beating Ruth's single-season RBI mark which he had set in 1921. The Yankees won the World Series again in 1928.

In 1931, Joe McCarthy, who was previously manager of the Chicago Cubs, was hired as manager and brought the Yankees back to the top of the AL. They swept the Chicago Cubs in the 1932 World Series, and brought the team's streak of consecutive World Series game wins to 12. This series was made famous by Babe Ruth's " Called Shot" in game three of the series at Wrigley Field, in which Ruth pointed to center field before hitting a home run. In 1935, Ruth left the Yankees to join the NL's Boston Braves, and he made his last major league baseball appearance on May 30 of that year.

1936–1951: Joltin' Joe DiMaggio

After Ruth left the Yankees following the 1934 season, Gehrig finally had a chance to take center stage, but it was only one year before a new star appeared, Joe DiMaggio. The team won an unprecedented four straight World Series titles from 1936 to 1939. For most of 1939, however, they had to do it without Gehrig, who took himself out of the lineup on May 2 and retired due to amyotrophic lateral sclerosis, which was later known as "Lou Gehrig's Disease" in his memory. The Yankees declared July 4, 1939 to be "Lou Gehrig Day", on which they retired his number 4, the first retired number in baseball. Gehrig made a famous speech in which he declared himself to be "the luckiest man on the face of the earth." He died two years later on June 2, 1941.

The 1941 season was often described as the last year of the "Golden Era" before the United States entered World War II and other realities intervened. Numerous achievements were made in the early 1940s including Ted Williams of the Red Sox hitting for the elusive .400 batting average and Joe DiMaggio getting hits in consecutive ballgames. By the end of his hitting streak, DiMaggio hit in 56 consecutive games, the current major league record and one often deemed unbreakable.

Two months after the Yankees beat the Brooklyn Dodgers in the 1941 World Series, the first of seven October meetings between the two crosstown rivals before the Dodgers moved to Los Angeles. As a result of the mandatory draft following the Attack on Pearl Harbor, more than 90 percent of the players, including DiMaggio, were forced to suspend their playing careers and enter the military. Despite losing many of their players, the Yankees still managed to pull out a win against the St. Louis Cardinals in the 1943 World Series. Following Jacob Ruppert's death in 1939, his heirs assumed control on the team. In 1945 construction and real estate magnate Del Webb along with partners Dan Topping and Larry MacPhail purchased the team from the Ruppert estate for $2.8 million (equivalent to $ million in ); MacPhail, who was the team president, treasurer, and general manager, was bought out following the 1947 World Series.

After a few slumping seasons, McCarthy left the organization in 1946. A few interim managers later, Bucky Harris took the job, righting the ship and taking the Yankees to a hard-fought series victory against the Dodgers.
Despite finishing only three games behind the Cleveland Indians in the 1948 pennant race, Harris was relieved of his duties and replaced by Casey Stengel, who had a reputation of being a clown and managing bad teams. His tenure as Yankees' field manager, however, was marked with success. The "underdog" Yankees came from behind to catch and surprise a powerful Red Sox team on the last two days of the 1949 season, a face-off that fueled the beginning of the modern Yankees–Red Sox rivalry. By this time, however, DiMaggio's career was winding down, and the "Yankee Clipper" retired after the 1951 season after numerous injuries. This year marked the arrival of Mickey Mantle, who was one of several rookies to fill the gap.

1951–1959: Stengel's Squad

Bettering the clubs managed by Joe McCarthy, the Yankees won the World Series five consecutive times from to under Stengel, which remains an MLB record. Led by players like center fielder Mickey Mantle, pitcher Whitey Ford, and catcher Yogi Berra, Stengel's teams won ten pennants and seven World Series titles in his 12 seasons as the Yankees manager. The title was the only one of those five championships not to be won against either the New York Giants or Brooklyn Dodgers; it was won in four straight games against the Whiz Kids of the Philadelphia Phillies.

In 1954, the Yankees won 103 games, but the Cleveland Indians took the pennant with a then-AL record 111 wins; 1954 was famously referred to as "The Year the Yankees Lost the Pennant". The term was coined by writer Douglass Wallop, who wrote a novel of the same name. The novel was then adapted into a musical called ''Damn Yankees''. In , the Dodgers finally beat the Yankees in the World Series, after five previous Series losses to them. The Yankees came back strong the next year. In Game 5 of the 1956 World Series against the Dodgers, pitcher Don Larsen threw the only perfect game in World Series history, which remains the only perfect game in postseason play and the only postseason no-hitter until 2010.

The Yankees lost the 1957 World Series to the Milwaukee Braves when Lew Burdette won three games for the Braves and was awarded World Series MVP. Following the Series, the New York Giants and the Brooklyn Dodgers both left for San Francisco and Los Angeles, respectively. This left the Yankees as New York's only baseball team. In the 1958 World Series, the Yankees got their revenge against the Braves and became the second team to win the Series after being down 3–1. For the decade, the Yankees won six World Series championships (1950, 1951, 1952, 1953, 1956, 1958) and eight American League pennants (those six plus 1955 and 1957). Led by Mantle, Ford, Berra, Elston Howard (the Yankees' first African-American player), and the newly acquired Roger Maris, the Yankees entered the 1960s seeking to replicate their success of the 1950s.

1960–1964: Mantle and Maris

Arnold Johnson, owner of the Kansas City Athletics, was a longtime business associate of Yankees co-owners Del Webb and Dan Topping. Because of this "special relationship" with the Yankees, he traded young players to them in exchange for cash and aging veterans. Invariably, these trades ended up being heavily tilted in the Yankees' favor, leading to accusations that the Athletics were little more than a Yankees farm team at the major league level. Kansas City had been home to the Yankees' top farm team, the Kansas City Blues, for almost 20 years before the Athletics moved there from Philadelphia in 1954.

In 1960, Charles O. Finley purchased the Athletics and put an end to the trades with the Yankees. At that point, however, the Yankees had already strengthened their supply of future prospects, which included a young outfielder named Roger Maris. In 1960, Maris led the league in slugging percentage, RBI, and extra-base hits. He finished second in home runs (one behind Mickey Mantle) and total bases, and won a Gold Glove, which garnered enough votes for the American League MVP award.

The year 1961 was one of the most memorable in Yankees history. Mantle and Maris hit home runs at a fast pace and became known as the "M&M Boys". Ultimately, a severe hip infection forced Mantle to leave the lineup at the end of the regular season. Maris continued though, and on October 1, the last day of the regular season, he hit home run number 61, surpassing Babe Ruth's single-season home run record of 60. However, MLB Commissioner Ford Frick decreed that since Maris had played in a 162-game season, and Ruth (in 1927) had played in a 154-game season. They were considered two separate records for 30 years, until MLB reversed course and stated Maris held the record alone. His record would be broken by Mark McGwire, who hit 70 home runs in 1998. Maris held the American League record until 2022 when Aaron Judge hit 62.

The Yankees won the pennant with a 109–53 record and went on to defeat the Cincinnati Reds in the 1961 World Series. The team finished the year with 240 home runs, which was an MLB record until surpassed by the 1996 Baltimore Orioles team with 257 home runs. In 1962, the sports scene in New York changed when the National League added an expansion team, the New York Mets. The Mets played at the Giants' former home, the Polo Grounds, for two seasons while Shea Stadium was under construction in nearby Flushing, Queens. This restored New York as a city with more than one team, as it had been from the late 1800s until 1957. The Yankees won the 1962 World Series, their tenth in the past sixteen years, defeating the San Francisco Giants 4–3. It was the Yankees' last championship until 1977.

The Yankees easily reached the 1963 World Series when they won the pennant by 10.5 games, but they scored only four runs in the series and were swept by the Los Angeles Dodgers and their ace pitcher, Sandy Koufax. The series was the first between the Yankees and the new Los Angeles Dodgers, after their move in 1958. After the season, Yogi Berra, who had just retired from playing, took over managerial duties. The aging Yankees returned the next year for a fifth straight World Series, but were beaten 4–3 by the St. Louis Cardinals. It would be the Yankees' last World Series appearance until 1976.

1965–1972: New ownership and a steep decline

After the 1964 season, broadcasting company CBS purchased 80% of the Yankees from Topping and Webb for $11.2 million (equivalent to $ million in ). With the new ownership, the team began to decline. The 1965 edition of the team posted a record of 77–85 — the Yankees' first losing record in 40 years. In 1966, the Yankees finished in last place in the AL for the first time since 1912. It also marked their first consecutive losing seasons since 1917 and 1918. The 1967 season was not much better; they finished only ahead of the Kansas City Athletics in the American League. While their fortunes improved somewhat in the late 1960s and early 1970s, they finished higher than fourth only once during CBS' ownership, in 1970.

The Yankees were not able to replace their aging superstars with promising young talent, as they had consistently done in the previous five decades. As early as the 1961–62 off-season, longtime fans noticed that the pipeline of talent from the minor league affiliates had started to dry up. This was worsened by the introduction of the amateur draft that year, which meant that the Yankees could no longer sign any player they wanted. The Yankees was one of four teams who voted against the establishment of the draft. While the Yankees usually drafted fairly early during this period due to their lackluster records, Thurman Munson was the only pick who lived up to his billing.

1973–1981: Steinbrenner, Martin, Jackson, and Munson: the Bronx Zoo

A group of investors, led by Cleveland-based shipbuilder George Steinbrenner (1930–2010), purchased the club from CBS in 1973, for $8.7 million (equivalent to $ million in ). E. Michael Burke, who assumed the role of team president in 1966, resigned as president in April but stayed with the organization as a consultant to the owner. Within a year, Steinbrenner bought out most of his other partners and became the team's principal owner, although Burke continued to hold a minority share into the 1980s.

One of Steinbrenner's major goals was to renovate Yankee Stadium. Both the stadium and the surrounding neighborhood had deteriorated by the late 1960s. CBS initially suggested renovations, but the team needed to play elsewhere, and the Mets refused to open their home, Shea Stadium, to the Yankees. A new stadium in the Meadowlands, across the Hudson River in New Jersey, was suggested (and was eventually built, as Giants Stadium, specifically for football). Finally, in mid-1972, Mayor John Lindsay stepped in. The city bought the stadium and began an extensive two-year renovation period. Since the city also owned Shea Stadium, the Mets were forced to allow the Yankees to play two seasons there. The renovations modernized the look of the stadium, significantly altered the dimensions, and reconfigured some of the seating.

In 1973, Steinbrenner instituted a personal appearance policy that included being clean-shaven, with long hair slicked back or trimmed. In an interview with ''The New York Times'', Steinbrenner stated the policy was to " instill a certain sense of order and discipline" in the players. The policy originated from Steinbrenner's service in the United States Air Force, which had a similar appearance policy. This rule is still in effect today, and enforced by his sons after George's passing. The Cincinnati Reds had the same personal appearance policy from 1967 until 1999.

After the 1974 season, Steinbrenner made a move that started the modern era of free agency, signing star pitcher Catfish Hunter away from Oakland. Midway through the 1975 season, the team hired former second baseman Billy Martin as manager. With Martin at the helm, the Yankees reached the 1976 World Series, but were swept by the Cincinnati Reds and their famed "Big Red Machine."

After the 1976 campaign, Steinbrenner added star Oakland outfielder Reggie Jackson—who had spent 1976 with the Baltimore Orioles—to his roster.
During spring training of 1977, Jackson alienated his teammates with controversial remarks about the Yankees captain, catcher Thurman Munson. He had bad blood with manager Billy Martin, who had managed the Detroit Tigers when Jackson's Athletics defeated them in the 1972 playoffs. Jackson, Martin, and Steinbrenner repeatedly feuded with each other throughout Jackson's 5-year contract. Martin was hired and fired by Steinbrenner five times over the next 13 years. This conflict, combined with the extremely rowdy Yankees fans of the late 1970s and the bad conditions of the Bronx, led to the Yankees organization and stadium being referred to as the "Bronx Zoo". Despite the turmoil, Jackson hit four home runs in 1977 World Series and earned the Series MVP Award and the nickname "Mr. October."

Throughout the late 1970s, the race for the pennant was often a close competition between the Yankees and the Red Sox. On July 14, 1978, the Yankees were games behind the Red Sox. In late July, Martin suspended Reggie Jackson and fined him $9,000 (equivalent to $ in ) for "defiance" after he bunted while Martin had the "swing" signal on. Upon Jackson's return, Martin made a famous statement against both Jackson and owner Steinbrenner: "They deserve each other. One's a born liar; the other's convicted." Martin was forced to resign the next day and was replaced by Bob Lemon. This came while the team was winning five games in a row and Boston was losing five in a row.

The Yankees continued to win games, and by the time they met Boston for a pivotal four-game series at Fenway Park in early September, the Yankees were four games behind the Red Sox. The Yankees swept the Red Sox in what became known as the " Boston Massacre," winning the games 15–3, 13–2, 7–0, and 7–4. The third game was a shutout pitched by Ron Guidry, who led the majors with nine shutouts, a 25–3 record, and a 1.74 ERA. On the last day of the season, the two clubs finished in a tie for first place in the AL East, and a tiebreaker game was held at Fenway Park. With Guidry pitching against former Yankee Mike Torrez, the Red Sox took an early 2–0 lead. In the seventh inning, light-hitting Yankee shortstop Bucky Dent drove a three-run home run over the Fenway Park's Green Monster, putting the Yankees up 3–2. Reggie Jackson's solo home run in the following inning sealed the eventual 5–4 win that gave the Yankees their one-hundredth win of the season and their third straight AL East title. Guidry earned his 25th win of the season.

After defeating the Kansas City Royals for the third consecutive year in the ALCS, the Yankees faced the Los Angeles Dodgers in the World Series. They lost the first two games in Los Angeles, but won all three games at Yankee Stadium and Game 6 back in Los Angeles, winning their 22nd world championship. Changes occurred during the 1979 season. Former Cy Young Award-winning closer Sparky Lyle was traded to the Texas Rangers for several players, including Dave Righetti. Tommy John was acquired from the Dodgers and Luis Tiant from the Red Sox to bolster the pitching staff. During the season, Bob Lemon was replaced by Billy Martin, who was serving his second stint as Yankees manager.

The 1970s ended on a tragic note for the Yankees. On August 2, 1979, catcher Thurman Munson died when his private plane crashed while he was practicing touch-and-go landings. Four days later, the entire team flew out to Canton, Ohio, for the funeral, despite having a game later that day against the Orioles. Bobby Murcer, a close friend of Munson's, along with Lou Piniella, were chosen to give the eulogy at his funeral. In a nationally televised and emotional game, Murcer used Munson's bat (which he gave to Munson's wife after the game), and drove in all five of the team's runs in a dramatic 5–4 walk-off victory. Before the game, Munson's locker sat empty except for his catching gear, a sad reminder for his teammates. His locker, labeled with his number 15, has remained empty in the Yankees clubhouse as a memorial. When the Yankees moved across the street, Munson's locker was torn out and installed in the new stadium's museum. Immediately after Munson's death, the team announced his number 15 would be retired.

The 1980 season brought more changes. Billy Martin was fired once again and Dick Howser took his place. Chris Chambliss was traded to the Toronto Blue Jays for catcher Rick Cerone. Reggie Jackson hit .300 for the only time in his career with 41 homers, and finished second in the MVP voting to Kansas City's George Brett. The Yankees won 103 games and the AL East by three games over the Baltimore Orioles, but were swept by the Royals in the ALCS.

After the season ended, the Yankees signed Dave Winfield to a 10-year contract. A contract misunderstanding led to a feud between Winfield and Steinbrenner. The team fired Howser and replaced him with Gene Michael. Under Michael, the Yankees led the AL East before a strike hit in June 1981. The Yankees struggled under Bob Lemon, who replaced Michael for the second half of the season. Thanks to the split-season playoff format, the Yankees faced the second-half winner Milwaukee Brewers in the special 1981 American League Division Series. After defeating Milwaukee 3–2, they swept the Oakland Athletics in a three-game ALCS. In the World Series, the Yankees won the first two games against the Los Angeles Dodgers. But the Dodgers fought back to win the next four games to claim the World Series title. This World Series would be the most recent between the Yankees and the Dodgers.

1982–1995: Struggles during the Mattingly years

Following the team's loss to the Dodgers in the 1981 World Series, the Yankees began their longest absence from the playoffs since 1921. Steinbrenner announced his plan to transform the Yankees from the "Bronx Bombers" into the "Bronx Burners," increasing the Yankees' ability to win games based on speed and defense instead of relying on home runs. As a first step towards this end, the Yankees signed Dave Collins from the Cincinnati Reds during the 1981 off-season. Collins was traded to the Toronto Blue Jays after the 1982 season in a deal that also included future All-Stars Fred McGriff and Mike Morgan. In return the Yankees got Dale Murray and Tom Dodd.

The Yankees of the 1980s were led by All-Star first baseman Don Mattingly. In spite of accumulating the most total wins of any major league team, they failed to win a World Series (the 1980s were the first decade since the 1910s in which the Yankees did not win at least two Series) and had only two playoff appearances. They consistently had a powerful offense, with Mattingly and Winfield competing for the best average in the AL for the 1984 season. Despite their offense, the Yankees teams of the 1980s lacked sufficient starting pitching to win a championship in the 1980s. After posting a 22–6 record in 1985, arm problems caught up with Guidry, and his performance declined over the next three years. He retired after the 1988 season. Of the remaining mainstays of the Yankees' rotation, only Dave Righetti stood out, pitching a no-hitter on July 4, 1983, but he was moved to the bullpen the next year where he helped to define the closer role.

Despite the Yankees' lack of pitching success during the 1980s, they had three of the premier pitchers of the early 1990s on their roster during these years in Al Leiter, Doug Drabek and José Rijo. All were mismanaged and dealt away before they could reach their full potential, with only Rijo returning much value – he was traded to the Oakland A's in the deal that brought Henderson to New York. The team came close to winning the AL East in 1985 and 1986, finishing second to the Toronto Blue Jays and Boston Red Sox, respectively, but fell to fourth place in 1987 and fifth in 1988, despite having mid-season leads in the AL East both years.
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By the end of the decade, the Yankees' offense declined. Henderson and third baseman Mike Pagliarulo had departed by the middle of 1989, while back problems hampered both Winfield (who missed the entire 1989 season) and Mattingly (who missed almost the entire second half of 1990). Winfield's tenure with the team ended when he was dealt to the California Angels. From 1989 to 1992, the team had a losing record, spending significant money on free-agents and draft picks who did not live up to expectations. In 1990, the Yankees had the worst record in the American League, and their fourth last-place finish in franchise history.

During the 1990 season, Yankee fans started to chant "1918!" to taunt the Red Sox, reminding them of the last time they won a World Series one weekend the Red Sox were there in 1990. Each time the Red Sox were at Yankee Stadium afterward, chants of "1918!" echoed through the stadium. Yankee fans also taunted the Red Sox with signs saying "CURSE OF THE BAMBINO", pictures of Babe Ruth, and wearing "1918!" T-shirts each time they were at the stadium. These fans came to be known as the Bleacher Creatures.

The poor showings in the 1980s and early 1990s soon changed. Steinbrenner hired Howard Spira to uncover damaging information on Winfield and was subsequently suspended from day-to-day team operations by Commissioner Fay Vincent for two years when the plot was revealed. This turn of events allowed management to implement a coherent acquisition and development program without owner interference. General Manager Gene Michael, along with manager Buck Showalter, shifted the club's emphasis from high-priced acquisitions to developing talent through the farm system. This new philosophy developed key players such as outfielder Bernie Williams, shortstop Derek Jeter, catcher Jorge Posada, and pitchers Andy Pettitte and Mariano Rivera. The first significant success came in 1994, when the Yankees had the best record in the AL, but the season was cut short by a players' strike. Because the Yankees were last in a postseason in a season cut short by a strike, the news media constantly reminded the Yankees about the parallels between these two Yankees teams, which included both teams having division leads taken away by strike. Throughout October, the media continued to speculate about what might have been if there had not been a strike, making references to the day's games in the postseason would have been played.

A year later, the team qualified for the playoffs in the new wild card slot in the strike-shortened 1995 season. In the memorable 1995 American League Division Series against the Seattle Mariners, the Yankees won the first two games at home and lost the next three in Seattle. Although Mattingly batted .417 with a home run and six RBI in the only postseason series of his career, his back problems led him to retire after the 1997 season after sitting out the 1996 season.

1996–2007: Core Four: Jeter, Posada, Pettitte, and Rivera

Joe Torre had a mediocre run as a manager in the National League, and the choice was initially derided ("Clueless Joe" was a headline in the ''New York Daily News''). However, his calm demeanor proved to be a good fit, and his tenure was the longest under George Steinbrenner's ownership. Torre was announced as the new Yankees manager in November 1995.

The 1996 season saw the rise of three Yankees who formed the core of the team for years to come: rookie shortstop Derek Jeter, second-year starting pitcher Andy Pettitte, and second-year pitcher Mariano Rivera, who served as setup man in 1996 before becoming closer in 1997. Aided by these young players, the Yankees won their first AL East title in 15 years. They defeated the Texas Rangers in the ALDS, and in ALCS beat the Baltimore Orioles 4–1, which included a notable fan interference by Jeffrey Maier that was called as a home run for the Yankees. In the World Series the team rebounded from an 0–2 series deficit and defeated the defending champion Atlanta Braves, ending an 18-year championship drought. Jeter was named Rookie of the Year. In 1997, the Yankees lost the 1997 ALDS to the Cleveland Indians 3–2. General manager Bob Watson stepped down and was replaced by assistant general manager Brian Cashman.

The 1998 Yankees are widely acknowledged to be one of the greatest teams in baseball history, compiling a record of 114–48, a then–AL record for the most wins in a season. On May 17, 1998, David Wells pitched a perfect game against the Minnesota Twins.
The Yankees went on to sweep the San Diego Padres in the World Series. Their 125 combined regular and postseason wins remains an MLB single-season record. On July 18, 1999, David Cone

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