Boston Red Sox owner Harry Frazee makes a secret agreement to sell Babe Ruth to the New York Yankees 

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On December 26, 1919 —  Boston Red Sox owner Harry Frazee makes a secret agreement to sell Babe Ruth to the New York Yankees for $100,000 (one-fourth cash, plus $25,000 a year at 6 percent) plus guaranteeing a $300,000 loan with Fenway Park as collateral. The transaction will be announced publicly in one week.

 

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