May 17, 2011, 9:13 AM EDT
Jim Crane met the media as the owner-in-waiting for the Houston Astros yesterday, and that led to a couple of glowing reviews of his business acumen and his plans for the future of the organization. It also led to a report in Forbes that says $300 million of the $680 million sales price of the team will be debt-financed.
It’s hard to place this in any kind of context because the Forbes report is thin on (actually devoid of) detail. What kind of debt is this, short or long term? Does that include the fairly standard line of credit that Major League Baseball extends all teams or is that separate? Is this secured by team property and future revenues or is it secured by, say, Jim Crane’s other businesses and/or personal property and that of the others in the ownership group? All of that matters. And, even if the report is true and the debts impinge on team assets, it’s in no case as bad as the McCourt financing of the Dodgers which represented far more than 100% of the purchase price.
But for all of the unknowns, the debt situation is worth looking into as the deal approaches closing. Recent history has shown us that team debt matters, and seeing how the Astros sale is being handled will provide us some amount of insight as to whether Major League Baseball has learned anything from recent history.
- Brad Ausmus receives a vote of confidence from new Tigers general manager Al Avila 6
- Title or no title, Dave Dombrowski’s tenure in Detroit was a success 20
- Dave Dombrowski out as Tigers General Manager, team president; Al Avila takes over 56
- Blue Jays’ Aaron Sanchez, John Gibbons disciplined in the wake of Sunday’s plunkings 69
- Believe the hype: Carlos Correa is already a superstar 34
- Gregg Zaun to Yordano Ventura: “stop writing checks with your mouth that your skinny ass can’t cash” 93
- And That Happened: Monday’s scores and highlights 55
- Adrian Beltre needs just five innings for the third cycle of his career 16
- The benches cleared in Friday’s Giants-Rangers game (208)
- Blue Jays acquire David Price from the Tigers (113)
- Rangers land ace left-hander Cole Hamels from Phillies (106)
- Gregg Zaun to Yordano Ventura: “stop writing checks with your mouth that your skinny ass can’t cash” (94)
- And That Happened: Sunday’s scores and highlights (88)