Major League Baseball Advanced Media — the baseball subsidiary behind MLB.com. MLB.tv and a lot of stuff about which you have no idea — is a gold mine. It, more than anything, has been responsible for the sharp increase in baseball revenues in recent years. And as an added bonus, the company just gets stuff right. I can watch a Mariners-A’s game on a Tuesday night in Ohio if I want to, and I can do so relatively cheaply. And it works. As does most of the stuff they do. Viva MLBAM.
But when you get a money-making enterprise that folks like, other folks will want to invest in it. And as Business Insider reported the other day, lots of private equity groups want to invest in MLBAM. But baseball is rejecting these overtures, preferring to forgo the instant liquidity in favor of keeping it the league and the owners’ very own private thing. BI has some possible explanations for this:
A source close to the talks tells us the company gets “call a day” from private equity firms, but that the company isn’t looking to sell a stake for a few reasons:
- It’s already loaded with cash.
- Owners are already getting a huge dividend.
- Selling a billion dollar stake in MLBAM any time soon would make it very hard for owners to argue that they’re broke in upcoming labor negotiations with players.
- Selling a stake could further complicate the ownership stake and perhaps even force a dreaded shotgun IPO.
Those are all very plausible reasons. I’ll add another one: The books of major league baseball owners are a thicket of self-dealing and chaos, and there’s no way in hell they want to open them up to anyone they don’t have to lest people see just how ugly they really are. If you doubt this, just recall the fun stuff we saw when Frank McCourt and Tom Hicks were forced to open their books in litigation. Or when Deadspin reported on a bunch of leaked financials from the Pirates, Marlins and other teams.
It’s less the case than it used to be, but in a lot of ways baseball teams are multi-million dollar businesses being run like a small town auto dealership. They make money to beat the band, but they’re not about to share that with the Wall Street crowd.
ESPN’s Jerry Crasnick reports that the Blue Jays are on the prowl for relievers with closing experience. Ryan Madson is one of the names on their list.
Madson, 35, had a career rebirth with the Royals in 2015. He signed a minor league deal with the club that paid him a salary of $850,000 if he made it back to the majors. Due to a plethora of arm injuries, Madson hadn’t pitched in the majors since Game 5 of the 2011 NLDS against the Cardinals as a member of the Phillies. For the Royals, he wound up becoming a crucial member of the bullpen, finishing with a 2.13 ERA and a 58/14 K/BB ratio over 63 1/3 innings.
While Madson allowed five runs in 8 1/3 post-season innings, he pitched well when it mattered most, as he hurled three scoreless frames in three appearances in the World Series against the Mets.
Madson has closing experience, with 55 career saves. 32 of them came in 2011 when he took over the closer’s role from Brad Lidge.
After signing Marco Estrada and J.A. Happ, and trading for Jesse Chavez, the Jays have bolstered their rotation but it was reported on Saturday that interim GM Tony LaCava is still focused on upgrading the pitching staff.
ESPN’s Buster Olney reports that free agent pitcher Trevor Cahill is looking for a one-year, bounce-back deal. The Pirates are one of the potential teams he is considering.
It’s no surprise that the Pirates are on Cahill’s list. Pirates pitching coach Ray Searage has garnered a reputation as a miracle worker after turning around the careers of a handful of pitchers, including Edinson Volquez, Francisco Liriano, and J.A. Happ. Volquez parlayed a one-year, $5 million deal with the Pirates into a two-year, $20 million deal with the Royals last December. Liriano signed with the Pirates on a one-year, $1 million contract and turned that into a three-year, $39 million deal. Happ, dealt to the Pirates from the Mariners at the most recent trade deadline, just signed a three-year, $39 million contract with the Blue Jays.
Cahill, once a highly-regarded pitching prospect, has scuffled over parts of seven seasons in the majors. The 27-year-old owns a career 4.13 ERA with a 754/427 K/BB ratio in 1,083 2/3 innings. Cahill had some brief success after signing with the Cubs as a free agent in mid-August, compiling a 2.12 ERA in 11 appearances out of the bullpen.
Jon Heyman of CBS Sports reports that the Blue Jays have narrowed their search for a new general manager down to two candidates: current interim GM Tony LaCava, and Indians vice president of player personnel Ross Atkins. Former Jays GM Alex Anthopoulos resigned last month.
LaCava was promoted to interim GM on November 2 and has already made a handful of moves along with new president Mark Shapiro. The club acquired Jesse Chavez in a trade and signed pitchers Marco Estrada and J.A. Happ to multi-year deals.
Atkins worked under Shapiro in the Indians organization for 15 seasons, so it is no surprise that he is a finalist for the open GM position.
Update (7:58 PM EST): Nick Piecoro of the Arizona Republic reports that Diamondbacks GM Dave Stewart met with Cueto earlier this month in the Dominican Republic and made a contract offer that the right-hander turned down. The Diamondbacks maintain interest in the free agent.
Ken Rosenthal of FOX Sports reports that the Diamondbacks spoke with Bryce Dixon, the agent of free agent starter Johnny Cueto. However, Rosenthal notes that Cueto’s price tag is expected to exceed the Diamondbacks’ comfort level.
Cueto, 29, is one of a handful of highly touted starting pitchers in this offseason’s free agent class. He is joined by David Price and Zack Greinke, among others. Jordan Zimmermann inked a deal in the neighborhood of $110 million over five years with the Tigers on Sunday morning, which will serve as a barometer for Cueto.
Cueto finished the 2015 regular season, between the Reds and the Royals, with a 3.44 ERA and a 176/46 K/BB ratio over 212 innings. He made 13 shaky starts with the Royals, but outside of a shellacking in Game 3 of the ALCS against the Blue Jays, pitched well in the post-season. Cueto pitched a complete game in Game 2 of the World Series against the Mets, helping put the Royals up two games to none at the time.
As a result of switching teams during the season, Cueto was not eligible to receive a $15.8 million qualifying offer. This means that Cueto, unlike Zimmermann for example, does not come attached with draft pick compensation.