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 30, 2015, 1:12 AM EDT
In a bit of an oddity, two World Series contenders made a trade.
Jul 30, 2015, 12:05 AM EDT
Unique situation Wednesday night at Citi Field.
Jul 29, 2015, 11:31 PM EDT
Houston defeated Anaheim 6-3 to jump back into first place in the American League West.
Jul 29, 2015, 10:46 PM EDT
It’s a massive two-team, eight-player blockbuster deal that will net the Phillies a frontline starter for this year and years to come while injecting more young talent into the Phillies’ under-construction minor league system.
Jul 29, 2015, 9:31 PM EDT
It’s now even more imperative that St. Louis general manager John Mozeliak secures a first baseman before the July 31 trade deadline.
Jul 29, 2015, 9:01 PM EDT
What a crazy night.
Jul 29, 2015, 8:58 PM EDT
Troy Tulowitzki struck out swinging in his first Blue Jays at-bat Wednesday night against the Phillies, but he unloaded on this Jerome Williams pitch in his second trip to the plate …
Jul 29, 2015, 8:12 PM EDT
There’s been a lot of speculation that these two could be a fit, and now it may be close to happening …
Jul 29, 2015, 7:44 PM EDT
Andrew McCutchen launched a traditional two-run homer in the top of the fifth inning Wednesday in the Pirates’ 10-4 rout of the Twins and then went Little League style in the top of the sixth …
Jul 29, 2015, 7:01 PM EDT
An MRI taken Tuesday ruled out anything serious, but Trout does have a bit of wrist inflammation.
Jul 29, 2015, 6:17 PM EDT
The very latest on the Cole Hamels trade front …
Jul 29, 2015, 5:21 PM EDT
The trade deadline be crazy.
Jul 29, 2015, 5:10 PM EDT
Jul 29, 2015, 3:56 PM EDT
Bradley gets another chance in Boston.
Jul 29, 2015, 3:44 PM EDT
They’re in fourth place and their best player isn’t coming back for a month. Makes all sorts of sense.
Jul 29, 2015, 3:30 PM EDT
Some real old school mentality being demonstrated there.
Jul 29, 2015, 2:54 PM EDT
It was Verlander’s second straight eight inning, one-run performance.
Jul 29, 2015, 2:15 PM EDT
Capuano failed to make it out of the first inning in Tuesday’s start.
Jul 29, 2015, 1:14 PM EDT
Jul 29, 2015, 12:19 PM EDT
At least to the extent you can have a bidding “war” over a two-month rental.
- Rangers land ace left-hander Cole Hamels from Phillies 75
- Mets, Brewers call off reported Carlos Gomez trade 62
- Dodgers, Marlins, Braves trade involving Mat Latos “simply being held up by paperwork” 66
- The Tigers are going to “reboot;” plan to trade Price and Cespedes 72
- Why do managers wear uniforms anyway? 49
- And That Happened: Tuesday’s scores and highlights 51
- Astros “making a strong effort” for Phillies ace Cole Hamels 32
- Angels acquire outfielders David Murphy and David DeJesus 24
- The MLBPA is considering withholding cooperation with ESPN, Fox over Colin Cowherd’s comments (157)
- The Cubs are in discussions with the Phillies on Cole Hamels (146)
- Colin Cowherd wonders how baseball can be considered “complicated” if Dominicans can understand it (129)
- Major League Baseball rips Colin Cowherd in an official statement (123)
- Settling the Scores: Wednesday’s results (106)