Are the new Astros owners the latest in a long line of debt-riddled ownership groups?

1 Comment

Jim Crane met the media as the owner-in-waiting for the Houston Astros yesterday, and that led to a couple of glowing reviews of his business acumen and his plans for the future of the organization. It also led to a report in Forbes that says $300 million of the $680 million sales price of the team will be debt-financed.

It’s hard to place this in any kind of context because the Forbes report is thin on (actually devoid of) detail.  What kind of debt is this, short or long term? Does that include the fairly standard line of credit that Major League Baseball extends all teams or is that separate? Is this secured by team property and future revenues or is it secured by, say, Jim Crane’s other businesses and/or personal property and that of the others in the ownership group? All of that matters. And, even if the report is true and the debts impinge on team assets, it’s in no case as bad as the McCourt financing of the Dodgers which represented far more than 100% of the purchase price.

But for all of the unknowns, the debt situation is worth looking into as the deal approaches closing.  Recent history has shown us that team debt matters, and seeing how the Astros sale is being handled will provide us some amount of insight as to whether Major League Baseball has learned anything from recent history.

Magic Johnson says the Dodgers will win the World Series

Getty Images
Leave a comment

Baseball, as we so often note around here, is unpredictable. Especially when it comes to the playoffs. You can be the best team in the land for six months but a few bad days can end your season once October hits.

In 2001 the Seattle Mariners won 116 games in the regular season but lost the ALCS to the Yankees, four games to one. In 1906 the Cubs won 116 games in a 152-game season and lost the World Series. In 1954 the Indians won 111 games in a 154-game season and lost the World Series. In 1931 the Philadelphia A’s won 107 games and lost the World Series.

More recently, with the advent of expanded playoffs, the chances for the team with the best record to win the World Series have been pretty dang terrible. Since the beginning of the wild card era, only five times has the team with the game’s best record gone on to win the World Series: The 1998 and 2009 Yankees, the 2007 and 2013 Red Sox and the 2016 Cubs. That’s it.

At the moment, the Los Angeles Dodgers have baseball’s best record. They’re 71-31 and sit 12 games up in their division. Their playoff chances are almost 100%. The above examples notwithstanding, if you had to make a prediction as to who might win the World Series, it would not be unreasonable to pick the Dodgers. Sure, you’d want to make sure they got Clayton Kershaw back by early September or thereabouts to make it a safer prediction, but it’d be a totally defensible pick. Maybe even the one most people make.

But it’d be the utmost in magical thinking to presume that one could make such a prediction with any degree of certainty, right? The Los Angeles Times, however, passes along some Magical thinking:

Magic Johnson called his shot Thursday night, and he wasn’t shy about it. The Dodgers’ co-owner did not hesitate when he predicted how the team would finish this year.

“The Dodgers are going to win the World Series this year,” Johnson said. “This is our year.”

The headline calls it a “guarantee.” I don’t know if I’d call it that — I think it’s more of a confident prediction — but it is a bold statement whatever you call it.

If I had to pick one team at the moment — and we could assume a healthy Clayton Kershaw — I suppose I would make them my World Series favorites too. And, yes, if I had an ownership interest in the Dodgers, I’d probably say what Johnson said.

But given the example of history, I think “field” would be a much safer bet.

Mariners trade Steve Cishek to the Rays for swingman Erasmo Ramirez.

Getty Images
Leave a comment

The Tampa Bay Rays have acquired reliever Steve Cishek from the Seattle Mariners in exchange for reliever Erasmo Ramirez.

Cishek had appeared in 23 games this season for Seattle after recovering from major offseason hip surgery. He’s 1-1 with a 3.15 ERA, with a 15/7 K/BB ratio in 20 innings. He’s a setup man right now, but he has experience as a closer, saving 25 games for Seattle last year and as many as 39 back when he pitched for the Marlins in 2014.

Ramirez has appeared in 26 games for the Rays and has started eight games. He’s 4-3 with a 4.80 ERA and a 55/16 K/BB ratio in 69.1 innings. This will be his second stint with the Mariners, having played for them from 2012-14.

Sort of a surprising deal given that both Tampa Bay and Seattle are competing for a wild card spot, but needs are needs.