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.”
Aug 23, 2014, 11:05 AM EDT
Nationals right-hander Doug Fister revealed last night that he had skin cancer removed from the left side of his neck this week.
Aug 23, 2014, 10:12 AM EDT
Many around the game were underwhelmed when the Rays acquired Drew Smyly, Nick Franklin, and Willy Adames in the three-team David Price deal last month. It will probably take years before we can make a fair assessment, but the early returns are positive for Tampa Bay.
Aug 23, 2014, 9:32 AM EDT
The Tigers turned to infielder Andrew Romine to pitch in a blowout last night.
Aug 23, 2014, 8:56 AM EDT
A quick recap of a busy Friday around MLB, including an important AL West battle.
Aug 22, 2014, 11:55 PM EDT
Garrett Richards had surgery to repair a torn patellar tendon in his left knee, meaning he’ll be out between six and nine months.
Aug 22, 2014, 11:05 PM EDT
The frustrating blackout restrictions could come to an end as early as 2015, according to Maury Brown of Forbes.
Aug 22, 2014, 10:10 PM EDT
Felix Hernandez has struck out 200-plus batters in each of the last six seasons, something no other starting pitcher will have done when the season is over.
Aug 22, 2014, 9:17 PM EDT
Mike Minor is on point in Cincinnati against the Reds on Friday night.
Aug 22, 2014, 9:15 PM EDT
The Giants don’t have any plans to move Buster Posey out from behind the plate just yet, even though his numbers are much better as a first baseman.
Aug 22, 2014, 8:20 PM EDT
The Dodgers’ Triple-A affiliate will reportedly move from Albuquerque, New Mexico to Oklahoma City, Oklahoma for the 2015 season.
Aug 22, 2014, 7:25 PM EDT
Kyle Lohse was dealing with a sore right ankle, but is expected to rejoin the Brewers’ rotation on Monday to start against the Padres.
Aug 22, 2014, 6:33 PM EDT
Manny Machado’s season is likely over, as he is expected to undergo season-ending knee surgery within a week, according to a report.
Aug 22, 2014, 6:20 PM EDT
According to Peter Gammons, the Orioles and Yankees are “claiming everyone” on waivers, which will make it difficult for the Angels to improve their starting rotation after losing Garrett Richards.
Aug 22, 2014, 5:28 PM EDT
His latest, a solo shot off Orioles right-hander Kevin Gausman.
Aug 22, 2014, 3:45 PM EDT
Sometimes the life of a player with a minor-league option remaining just isn’t fair.
Aug 22, 2014, 3:36 PM EDT
One window doesn’t work and there is no air conditioning. It has 166,000 miles on it. Which, actually, isn’t that bad. Hmmm . . .
Aug 22, 2014, 3:19 PM EDT
Oakland’s outfield depth just got a little stronger with Craig Gentry coming off the disabled list after missing the past month with a broken hand.
Aug 22, 2014, 2:57 PM EDT
Seven games in ten days for the AL West leaders
Aug 22, 2014, 1:50 PM EDT
Machado suffered a sprained right knee on August 11 and the Orioles have mostly been using Chris Davis at third base in his absence.
Aug 22, 2014, 12:49 PM EDT
This has been such a fun story so far. So why NOT throw politics into it?
- Settling the Score: Friday’s results 4
- Mike Minor loses his no-hit bid with two outs in the eighth 5
- Manny Machado to undergo season-ending knee surgery 32
- The Cubs grounds crew was short staffed because the Cubs were trying to avoid Obamacare 237
- Cuban outfielder Rusney Castillo to sign with the Red Sox for $72 million 96
- And That Happened: Thursday’s scores and highlights 31
- The Nationals extend their winning streak to 10 games with another walk-off victory 12
- Garrett Richards out 6-9 months with torn patellar tendon 14
- The Cubs grounds crew was short staffed because the Cubs were trying to avoid Obamacare (237)
- Cuban outfielder Rusney Castillo to sign with the Red Sox for $72 million (96)
- A pitch clock in Major League Baseball? No thanks. (92)
- Even if he’s reinstated, does Pete Rose make the Hall of Fame? (86)