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.”
May 28, 2015, 11:39 PM EDT
Red Sox prospect left-hander Eduardo Rodriguez tossed 7 2/3 scoreless innings in his major league debut against the Rangers on Thursday.
May 28, 2015, 10:51 PM EDT
Rockies prospect David Dahl suffered a “massive laceration” in his spleen following an outfield collision Thursday and required season-ending surgery.
May 28, 2015, 10:03 PM EDT
Hamilton got a rousing ovation from the home crowd in his return to Texas.
May 28, 2015, 9:05 PM EDT
Jarrod Saltalamacchia was cut loose by the Marlins earlier this month after proving to be a disappointment in his three-year, $21 million contract, but the Diamondbacks are ready to give him a shot.
May 28, 2015, 8:22 PM EDT
Kazmir left his start yesterday against the Tigers after three innings with shoulder tightness, but it sounds like he might not have to miss much time.
May 28, 2015, 7:40 PM EDT
Tanaka has been sidelined since April 23 due to a right forearm strain and right wrist tendinitis.
May 28, 2015, 7:01 PM EDT
The 39-year-old Ortiz has just one hit in his last 20 at-bats and is batting an uncharacteristic .216/.303/.377 with six home runs and 18 RBI across his first 43 games this season.
May 28, 2015, 6:15 PM EDT
The Indians placed Santana on the paternity leave list Thursday following the birth of his daughter.
May 28, 2015, 4:52 PM EDT
Nava has struggled all season, hitting just .159 with zero homers.
May 28, 2015, 4:27 PM EDT
Michael Taylor suddenly has a full-time job.
May 28, 2015, 4:00 PM EDT
Seven and two-thirds innings, 12 strikeouts and nothin’ else doin’.
May 28, 2015, 2:37 PM EDT
Great Moments in . . . wah?
May 28, 2015, 12:50 PM EDT
Kingham cracked top-100 prospect lists last season and this season.
May 28, 2015, 12:16 PM EDT
Jay has been out since May 10 with a wrist injury.
May 28, 2015, 11:53 AM EDT
I don’t do requests and even if I did, I would’t do Rush requests. But you all have broken me down.
May 28, 2015, 10:47 AM EDT
“I have nothing to complain about.”
May 28, 2015, 10:30 AM EDT
He just opted out of his deal with Tampa Bay.
May 28, 2015, 10:15 AM EDT
“He could be anywhere.”
May 28, 2015, 10:00 AM EDT
Where is the asterisk-applying crowd when you need ’em?
May 28, 2015, 9:19 AM EDT
In other news, Taco Bell restaurants in Southern League towns are experiencing record sales.
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