I am a Red Sox fan so I am aware of the revenue sharing scam that has money from the club go to subsidizing competing franchises. Both the Sox and Yanks helped finance the Rays the past several years.
However, I criticize the Yanks for bad management decisions. Go back to the 90s and see how they dominated with home grown talent and smart FA signings. When they started to panic in 2001 and went back to signing overpriced FAs they managed to compete for a while but the core has rotted out. I would say that if they were signing guys to 3-4 year deals while their scouting and player development machine kicked into gear then it would make sense but they always manage to overpay.
Agreed, the Red Sox have done an excellent job of balancing the two - free agents and internal development. Like I said in an earlier post - I think Cashman is an overrated GM.