Mark Cuban — as is his wont — took to his blog today to give a very long and very detailed explanation of his involvement in the Texas Rangers auction. There’s a lot of play-by-play of how he got sucked into the whole crazy business. And it’s all very interesting, so you should definitely read it if, for no other reason than to realize that Cuban is a businessman and not a psycho.
But maybe the best parts come toward the end when he takes on two big criticisms he’s been getting lately: (a) that he would not be approved by Major League Baseball; and (b) that he was really only in the auction in order to bid-up the value of $2 million worth of Rangers bonds he happens to own:
Now lets talk about MLB. It seems to be a fun media sport to talk
about how there is no way i will ever get approved buy MLB to buy a
team. At the hearing yesterday it was mentioned that our group only had
a 50/50 chance of ever being approved. I tend to never look at the
glass as being half empty or half full. I look to see who is pouring the
water and to deal with them. Not the media. I am pretty confident we
would have been approved.
Finally lets talk about finances. Lets talk about the bonds I own. I
have been getting a bunch of emails from reporters asking how much money
I made on the bonds I own. Suggesting that I bid up the price of the
Rangers in order to increase the value of the $2mm i spent on bonds. To
all of you I offer a lesson in economics.
It is NEVER a good idea to risk hundreds of millions of dollars on
the purchase of a team AND to spend what could come to more than a
$1million in professional fees in order to increase the value of the
$2mm you bought in bonds. I know its something for the media to talk
about. But if any of you out there think it through, I dont want you to
think i was stupid enough to do something that stupid.
The real reason he even bought those bonds, Cuban says, is so that he could be an insider and do some better due diligence on the Rangers when the notion of him buying the team first came up last year.
Seems plausible to me, as does most of what else he says.
The biggest takeaway here: Cuban was really in this for the opportunity
to create a regional sports network on which he could broadcast Rangers
and Mavericks games. Contrary to the reputation he has in some quarters, that’s not nuts at all. That’s really good business.