Nov 23, 2013, 12:46 PM EST
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.”
Feb 28, 2015, 8:57 AM EST
It will be his first game action since last July 31.
Feb 27, 2015, 11:04 PM EST
The Rangers will shut down Edgar Olmos days after picking him up on a waiver claim from the Mariners.
Feb 27, 2015, 10:55 PM EST
Eury Perez is the early favorite to take over in center field while Melvin Upton recovers from a foot injury.
Feb 27, 2015, 10:05 PM EST
New Twins manager Paul Molitor cracked down on electronics usage in his first address to the full squad at spring training.
Feb 27, 2015, 9:10 PM EST
Ryan Howard had his first full healthy season since 2011 and both GM Ruben Amaro, Jr. and guest instructor Dan Plesac thought he looked like he was in very good shape.
Feb 27, 2015, 8:20 PM EST
Two more suitors enter the Dayan Viciedo sweepstakes.
Feb 27, 2015, 7:15 PM EST
Michael Saunders will return to the Blue Jays a lot sooner than anticipated.
Feb 27, 2015, 7:10 PM EST
For the second time this offseason, the Athletics have claimed Alex Hassan off waivers.
Feb 27, 2015, 6:36 PM EST
Chris Davis will get some work in the outfield this spring. He hasn’t played there since 2012.
Feb 27, 2015, 6:05 PM EST
MLBPA executive director Tony Clark will be keeping a close eye on how the Cubs handle the eventual promotion of prospect Kris Bryant.
Feb 27, 2015, 5:10 PM EST
It’s been a long week.
Feb 27, 2015, 4:51 PM EST
Note: they’re not fans of this particular bit of product placement.
Feb 27, 2015, 4:35 PM EST
Lowe pitched for the Red Sox from 1997-2004.
Feb 27, 2015, 1:50 PM EST
New name, same luck.
Feb 27, 2015, 1:27 PM EST
Except, of course, when he does.
Feb 27, 2015, 1:06 PM EST
Pierre was a singles-hitting, base-stealing machine.
Feb 27, 2015, 11:19 AM EST
If he’s called up to the majors Santana will get $2.5 million in guaranteed money.
Feb 27, 2015, 11:03 AM EST
When he’s done he’ll have played 18 years in the bigs and will be pushing 400 homers.
Feb 27, 2015, 10:47 AM EST
“The only way he is really going to help us is in the bullpen.”
Feb 27, 2015, 10:35 AM EST
Yes, this is mostly just an excuse to post a picture of Bartolo Colon
- Aramis Ramirez says 2015 will be his last year 31
- Francisco Rodriguez re-signs with the Brewers 9
- If addiction is an illness — and it is — Josh Hamilton shouldn’t be suspended 284
- Pirates open to massive extension for Andrew McCutchen 18
- Report: Josh Hamilton had a relapse this offseason that “involved at least cocaine” 86
- Yankees don’t plan on having to pay A-Rod’s $30 million in home run milestone bonuses 51
- San Francisco — and all of California — will consider a smokeless tobacco ban that includes MLB parks 131
- Rob Manfred says a return to a 154-game season could happen one day 67
- If addiction is an illness — and it is — Josh Hamilton shouldn’t be suspended (284)
- San Francisco — and all of California — will consider a smokeless tobacco ban that includes MLB parks (131)
- Report: The Yankees were “fuming” at how A-Rod handled his early arrival to spring training (114)
- Cuban prospect Yoan Moncada reportedly signs with the Red Sox for $31.5 million, plus $31.5 million in penalties (106)
- Brian Sabean says that California taxes are a hindrance to the Giants signing free agents (102)