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The Dodgers sale is being financed by people’s insurance money. Is this a problem?

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Over at the New York Times’ Deal Book blog, Andrew Ross Sorkin notes that the sale of the Dodgers to the group led by Magic Johnson — but really controlled by Guggenheim Partners’ Mark Walter — is being financed with insurance policy dough:

In addition to their own cash, Mr. Walter plans to use money from Guggenheim subsidiaries that are insurance companies — some state-regulated — to pay for a big chunk of his purchase of the Dodgers. Guggenheim controls Guggenheim Life, a life insurer, and Security Benefit, which manages some $30 billion, among others.

Using insurance money — which is typically supposed to be invested in simple, safe assets — to buy a baseball team, the ultimate toy for the ultrarich, seems like a lawsuit waiting to happen.

Sorkin explains that this is especially problematic given what seemed to be a significant overpay for the team and given that Walter has said that he’s not too concerned about immediate profitability. What of the fiduciary duties to the policy holders, he wonders.

While Sorkin seems pretty alarmed by this, he later makes mention of the fact that long-term holdings are not unheard of for insurance-backed investments.  And this is where I think the alarm should stop. Remember: the Dodgers nearly quintupled in value during the McCourt years, despite historic mismanagement by Frank McCourt.

While I appreciate that there is a bubble element to elevating franchise values in any given short period of time, sports teams have proven to be a safer investment than just about anything over the past, well, forever.  It’s like a license to print money.

Nationals will add Mat Latos to the roster on Thursday

ARLINGTON, TX - MAY 11:  Mat Latos #38 of the Chicago White Sox pitches against the Texas Rangers in the bottom of the first inning at Globe Life Park in Arlington on May 11, 2016 in Arlington, Texas.  (Photo by Tom Pennington/Getty Images)
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Thursday is September 1, which means rosters expand. As a result, the Nationals plan to promote pitcher Mat Latos to the major league roster, Ken Rosenthal of FOX Sports reports. Latos had an opt-out clause for Monday, but after discussing the matter with the team, he agreed to stay at Triple-A Syracuse until Thursday.

Latos, 28, put up a 4.62 ERA over 11 starts with the White Sox before being released in mid-June. Nearly two weeks later, he signed a minor league contract with the Nationals.

In the Nationals’ minor league system, Latos has made three starts for the club’s Gulf Coast League team as well as three for Syracuse. In aggregate, the right-hander has yielded six runs (four earned) on 20 hits and 10 walks with 28 strikeouts in 28 innings.

Latos will likely pitch out of a long relief role for the Nationals and can be used as starting rotation insurance as well.

John Gibbons texts Mark Buehrle, “You know, rosters expand in September.”

ST. PETERSBURG, FL - OCTOBER 2:  Mark Buehrle #56 of the Toronto Blue Jays pitches during the second inning of a game against the Tampa Bay Rays on October 2, 2015 at Tropicana Field in St. Petersburg, Florida.  (Photo by Brian Blanco/Getty Images)
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Mark Buehrle hasn’t officially retired, but he hasn’t thrown a pitch in professional baseball since last October. Still, the Blue Jays wouldn’t mind having some insurance, so manager John Gibbons recently texted Buehrle, “You know, rosters expand in September,” Sportsnet’s Ben Nicholson-Smith reports.

Buehrle’s response? He texted back a picture of a lake. Sounds like he’s not interested in making a return, at least this year.

Last year, at the age of 36, Buehrle went 15-8 with a 3.81 ERA with a 91/33 K/BB ratio in 198 2/3 innings while leading the league with four complete games. He fell 1 1/3 innings shy of a 15th consecutive 200-inning season. There are many worse ways to end a career.