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.
Blue Jays closer Roberto Osuna recently revealed that he has been dealing with an anxiety issue, Rob Longley of the Toronto Star reports. Osuna specified that the issue is completely off the field, not on the field. He is not sure when he’ll be able to return to pitch again.
Osuna had been feeling “a little bit anxious, a little bit weird” and said, “I feel like I’m lost a little bit right now.” Despite the anxiety, Osuna volunteered to pitch during Friday’s loss to the Royals, but the Blue Jays smartly chose not to put him into the game.
Osuna said, “I wish I knew how to get out of here and how to get out of this. We’re working on it. We’re trying to find ways to see what can make me feel better. But to be honest I just don’t know.”
It must have been tough for Osuna to make his issue public, as there is still a stigma around dealing with mental issues. Given the prominent position he holds in the Jays’ bullpen, fans become even less empathetic about taking time off to deal with it as well. Hopefully, Osuna is able to use the time off to get the help he needs. And hopefully his going public helps motivate other people dealing with mental issues to seek help for themselves.
The 22-year-old recently became the youngest player in major league history to reach 75 career saves. This season, Osuna is carrying a 2.48 ERA with 19 saves and a 37/3 K/BB ratio in 39 innings.
ESPN’s Jerry Crasnick reported on Sunday that the Brewers claimed catcher Stephen Vogt off waivers from the Athletics. Vogt was designated for assignment by the Athletics on Thursday.
Vogt, 32, was an All-Star in each of the last two seasons, but struggled this year. He hit .217/.287/.357 with four home runs and 20 RBI in 174 plate appearances.
With the Brewers, Vogt will likely split time behind the plate with Manny Pina. Meanwhlie, the Athletics’ catching situation will be handled by Josh Phegley and Bruce Maxwell.