Lots of people want to buy in to MLBAM, but the owners aren’t selling

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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.

Mets place Zack Wheeler on the 10-day disabled list

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The Mets announced on Monday that starter Zack Wheeler has been placed on the 10-day disabled list with a stress reaction in his right arm. Pitcher Tyler Pill has been recalled from Triple-A Las Vegas.

Wheeler, 27, has a 5.21 ERA with an 81/40 K/BB ratio in 86 1/3 innings this season. He joins a long list of injured Mets, including rotation mates Noah Syndergaard, Matt Harvey, Tommy Milone, and Robert Gsellman. It’s not clear at the moment how long Wheeler will be out.

Pill, 27, has spent most of his season with Las Vegas, with which he has a 3.47 ERA over 13 starts. He has made three starts and two relief appearances in the majors this season as well.

Report: Royals acquire Brandon Maurer, Ryan Buchter, Trevor Cahill from Padres

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Robert Murray of FanRag Sports reports that the Royals are acquiring pitchers Brandon Maurer, Ryan Buchter, and Trevor Cahill from the Padres in exchange for Matt Strahm, Travis Wood, and Esteury Ruiz. Jon Heyman has confirmed the deal.

Maurer, 27, has saved 20 games for the Padres this year despite a 5.72 ERA. He carries with him a 38/8 K/BB ratio in 39 1/3 innings. The right-hander is arbitration-eligible going into the next two seasons and can become a free agent after the 2019 season.

Buchter, 30, owns a 3.05 ERA with a 47/18 K/BB ratio in 38 1/3 innings of relief work this season with the Padres. He’ll be under team control through 2021.

Cahill, 29, has posted a 3.69 ERA with a 72/24 K/BB ratio in 61 innings across 11 starts. He can become a free agent after the season.

Strahm, 25, put up a 5.45 ERA with a 37/22 K/BB ratio in 34 2/3 innings. He underwent season-ending knee surgery on July 7 and will miss the rest of the season.

Wood, 30, has a 6.91 ERA with a 29/20 K/BB ratio in 41 2/3 innings. Given his experience out of both the starting rotation and the bullpen, he can pitch in a swingman role. The lefty is under contract next year for $6.5 million. Wood has a mutual option for 2019 worth $8 million with a $1 million buyout.

Ruiz, 18, signed with the Royals as an international free agent out of the Dominican Republic in July 2015. This season, in rookie ball, he hit .419/.440/.779 in 91 plate appearances. Ruiz has played both second base and shortstop.