Nov 23, 2013, 12:46 PM EDT
Jim Crane’s Houston Astros ownership group filed a lawsuit late Thursday against former Astros owner Drayton McLane Jr., McLane Champions, LLC, Comcast Corporation and NBCUniversal (NBC Sports is owned by Comcast/NBCUniversal).
The suit, filed in Texas state court, alleges that, at the time of Crane’s ownership group’s 2011 acquisition of the Astros and McLane’s interest in the regional sports network CSN Houston, the defendants engaged in fraud and conspiracy and negligently misrepresented and omitted information relating to the network’s value and its prospects.
The lawsuit also accuses McLane Champions of breach of contract.
The Astros and McLane’s share of CSN Houston were reportedly sold for $615 million. CSN Houston launched in October 2012 and started televising Astros games in 2013.
“These misrepresentations have caused us an enormous loss, and they’ve hurt our fans and hurt our city of Houston,” Crane said during a Friday press conference. “Because of these misrepresentations, we are stuck in a network deal that cannot get off the ground.
“So we now face a situation where we accept millions of dollars of loss each year with damage to the franchise and the city, or we fight back.”
I haven’t seen the lawsuit yet, but Jim Crane is highly experienced and has been in business over 30 years. He is surrounded by top tier accounts, attorneys, operators and marketers and he has participated in transactions even larger than this one. His experts meticulously examined the Houston Astros financial position. My team was absolutely transparent and produced thousands of pages of documents; we provide answers to explanations to all of their questions. Any suggestion otherwise is absolutely false. As an example, today, Jim Crane reportedly stated that he did not receive the business plan for CSN Houston prior to the purchase. That is not true.
“This was one of the most complex and scrutinized transactions of my business career. Jim’s group had all the facts. In fact, he told the Chronicle this September that the regional sports network had ‘good long-term value.’ The Accusations that have been reported are hollow and appear to be an attempt to recreate the facts,. We will respond in a vigorous and persuasive manner to the lawsuit.
NBCUniversal also released a statement:
“Comcast/NBCUniversal vehemently rejects any claim of wrongdoing asserted by the Astros. This litigation outside the bankruptcy proceedings is a desperate act, committed during a period in which Mr. Crane and his team of sophisticated advisors have been granted by the Bankruptcy Court an opportunity to explore and effectuate solutions to the Network’s serious business problems. Instead, it appears that Mr. Crane is suffering from an extreme case of buyer’s remorse, and aiming to blame the Network’s challenges on anything but his own actions. Comcast/NBCUniversal looks forward to vindicating itself in this litigation and also remains committed to a reorganization of the Network in Bankruptcy Court.”
Crane told the Houston Chronicle that he doesn’t have buyer’s remorse and is “very happy we own the team and will continue to be happy and we’ll work our way through this, and the rest of it, I guess we’ll sort it out in court.”
Jul 4, 2015, 3:18 PM EDT
Miguel Cabrera is going to be missed while he’s out with a Grade 3 strain of his left calf, but the Tigers are getting by just fine so far this afternoon against the Blue Jays.
Jul 4, 2015, 2:42 PM EDT
Norris has a 6.79 ERA over 11 starts this season.
Jul 4, 2015, 1:45 PM EDT
Beth Fedornak claims to have suffered “permanent or continuing injuries in her neck and back” as a result of the mascot’s actions.
Jul 4, 2015, 12:39 PM EDT
Nationals right-hander Stephen Strasburg exited today’s start against the Giants in the top of the fourth inning due to an apparent injury to his left side.
Jul 4, 2015, 12:39 PM EDT
Bauer also had a heck of an at-bat in the process.
Jul 4, 2015, 12:09 PM EDT
It’s only noon on the East Coast, but Nationals slugger Bryce Harper is already setting off fireworks.
Jul 4, 2015, 11:49 AM EDT
The Tigers have no great internal options to replace Miguel Cabrera and not much with which to trade.
Jul 4, 2015, 11:28 AM EDT
Alderson says Collins isn’t to blame for the Mets’ lack of offense.
Jul 4, 2015, 10:31 AM EDT
I guess the pigeon was a Yankees fan.
Jul 4, 2015, 9:42 AM EDT
Cabrera is headed to the disabled list for the first time in his 13-year major league career.
Jul 4, 2015, 8:55 AM EDT
A quick recap of a busy Friday, including a walk-off win for the Yankees.
Jul 4, 2015, 12:58 AM EDT
In a shocking move, the Rangers designated Neftali Feliz for assignment to clear roster space for Matt Harrison.
Jul 3, 2015, 11:45 PM EDT
Base Ba’al has no mercy for Coco Crisp.
Jul 3, 2015, 11:05 PM EDT
The Mets are VERY interested in Ben Zobrist.
Jul 3, 2015, 10:10 PM EDT
The Mets are getting desperate for runs, but aren’t ready to rush prospect Michael Conforto just yet.
Jul 3, 2015, 9:20 PM EDT
Miguel Cabrera suffered a calf injury after a single in the fourth inning on Friday against the Blue Jays.
Jul 3, 2015, 9:08 PM EDT
Anibal Sanchez has silenced a tough Blue Jays lineup.
Jul 3, 2015, 8:35 PM EDT
Patrick Corbin will complete his long trek back to the major leagues when he starts against the Rockies on Saturday.
Jul 3, 2015, 7:45 PM EDT
The Athletics haven’t used Josh Reddick much against left-handed starters. Reddick isn’t too happy with that, despite his results against southpaws.
Jul 3, 2015, 6:55 PM EDT
Jameson Taillon was getting pretty close to returning to action for the Pirates, but an inguinal hernia has knocked him back on the shelf.
- Stephen Strasburg exits start with tightness in left side 5
- In the wake of the Miguel Cabrera injury the Tigers have few good options 8
- Mets general manager Sandy Alderson says Terry Collins’ job is safe 7
- Calf injury sends Miguel Cabrera to the disabled list for the first time in his career 4
- Settling the Score: Friday’s results 21
- Rangers designate Neftali Feliz for assignment, activate Matt Harrison 9
- Anibal Sanchez loses his bid for a no-hitter with one out in the eighth inning 11
- The Yankees, A-Rod resolve their dispute over the $6 million milestone bonus 31
- Settling the Scores: Sunday’s results (99)
- Mike Scioscia says Josh Hamilton should apologize to Angels owner Arte Moreno (88)
- What Yasiel Puig being a pain in the butt means. And what it doesn’t mean. (78)
- Report: Jerry Dipoto “definitely out” as Angels GM (77)
- Brian Dozier is the best second baseman in baseball (72)