Jim Crane’s Houston Astros ownership group filed a lawsuit late Thursday against former Astros owner Drayton McLane Jr., McLane Champions, LLC, Comcast Corporation and NBCUniversal (NBC Sports is owned by Comcast/NBCUniversal).
The suit, filed in Texas state court, alleges that, at the time of Crane’s ownership group’s 2011 acquisition of the Astros and McLane’s interest in the regional sports network CSN Houston, the defendants engaged in fraud and conspiracy and negligently misrepresented and omitted information relating to the network’s value and its prospects.
The lawsuit also accuses McLane Champions of breach of contract.
The Astros and McLane’s share of CSN Houston were reportedly sold for $615 million. CSN Houston launched in October 2012 and started televising Astros games in 2013.
“These misrepresentations have caused us an enormous loss, and they’ve hurt our fans and hurt our city of Houston,” Crane said during a Friday press conference. “Because of these misrepresentations, we are stuck in a network deal that cannot get off the ground.
“So we now face a situation where we accept millions of dollars of loss each year with damage to the franchise and the city, or we fight back.”
McLane released a statement on Friday responding to the suit:
I haven’t seen the lawsuit yet, but Jim Crane is highly experienced and has been in business over 30 years. He is surrounded by top tier accounts, attorneys, operators and marketers and he has participated in transactions even larger than this one. His experts meticulously examined the Houston Astros financial position. My team was absolutely transparent and produced thousands of pages of documents; we provide answers to explanations to all of their questions. Any suggestion otherwise is absolutely false. As an example, today, Jim Crane reportedly stated that he did not receive the business plan for CSN Houston prior to the purchase. That is not true.
“This was one of the most complex and scrutinized transactions of my business career. Jim’s group had all the facts. In fact, he told the Chronicle this September that the regional sports network had ‘good long-term value.’ The Accusations that have been reported are hollow and appear to be an attempt to recreate the facts,. We will respond in a vigorous and persuasive manner to the lawsuit.
NBCUniversal also released a statement:
“Comcast/NBCUniversal vehemently rejects any claim of wrongdoing asserted by the Astros. This litigation outside the bankruptcy proceedings is a desperate act, committed during a period in which Mr. Crane and his team of sophisticated advisors have been granted by the Bankruptcy Court an opportunity to explore and effectuate solutions to the Network’s serious business problems. Instead, it appears that Mr. Crane is suffering from an extreme case of buyer’s remorse, and aiming to blame the Network’s challenges on anything but his own actions. Comcast/NBCUniversal looks forward to vindicating itself in this litigation and also remains committed to a reorganization of the Network in Bankruptcy Court.”
Crane told the Houston Chronicle that he doesn’t have buyer’s remorse and is “very happy we own the team and will continue to be happy and we’ll work our way through this, and the rest of it, I guess we’ll sort it out in court.”
From Jon Heyman of CBS Sports comes word that the Orioles “like” free agent starter Yovani Gallardo and “have reached out to him” to gauge his interest in coming to Baltimore and what that might cost.
Gallardo rejected a one-year, $15.8 million qualifying offer from the Rangers earlier this month and so his free agency is tied to draft pick compensation, but that shouldn’t hurt his bottom line all that much.
The 29-year-old right-hander posted a solid 3.42 ERA in 184 1/3 innings (33 starts) this past season for Texas and he pitched well in his one ALDS start.
Heyman reported a few weeks ago that the Diamondbacks are interested, and the Cubs, Blue Jays, and Dodgers were tied to him just ahead of the July 31 trade deadline.
David Price has expressed a desire to return to Toronto, where he finished out the 2015 season, but FOX Sports’ Ken Rosenthal writes Wednesday that the Blue Jays “are not expected to be a major factor in his free agency.”
The teams that should be considered serious suitors, per Rosenthal, are the Cubs, Cardinals, Giants, Dodgers, and Red Sox — all deep-pocketed teams looking to contend in 2016. Money is apparently the issue for the Blue Jays, who are currently owned by Rogers Communications.
Price registered an outstanding 2.45 ERA, 1.076 WHIP, and 225/47 K/BB ratio in 220 1/3 innings (32 starts) this past season between the Tigers and Jays, finishing second in the American League Cy Young Award race behind Dallas Keuchel of the Astros.
The 30-year-old left-hander is probably looking for a six- or seven-year contract worth more than $25 million per season. He is represented by agent Bo McKinnis.
Barry Jackson of the Miami Herald wrote three weeks ago that the Marlins were probably going to explore an extension this winter with second baseman Dee Gordon. And it sounds like those talks are underway.
Via beat writer Joe Frisaro of MLB.com:
As a guest on MLB Network’s “Hot Stove” show Wednesday morning, Gordon confirmed his camp has been in talks with the Marlins regarding a multiyear deal. A source told MLB.com that the discussions are preliminary and have just recently started.
“My agent is doing the talking,” Gordon said on the show. “They’re just keeping me in the loop. I think it’s going pretty well right now. We’ll see how that goes. I’m just playing the waiting game. We’re going to do the right thing.”
The 27-year-old carries three more seasons of salary arbitration, so there’s no real rush to get something done before next spring. Gordon carries quite a bit of leverage after posting a career-best .333/.359/.418 slash line in 145 games this past season for the Fish. He led all major leaguers in hits (205) and stolen bases (58).
Bud Norris has found a home for his attempt at a bounceback season, signing a one-year deal with the Braves. Jon Heyman of CBSSports.com says it’s worth $2.5 million, which is a huge cut from his $8.8 million salary this year.
Norris had established himself as a solid mid-rotation starter from 2009-2014, but had a brutal 2015 season split between the Orioles and Padres with a 6.72 ERA in 83 innings and a late-season move to the bullpen.
In announcing the signing the Braves referred to Norris as a starting pitcher, so joining the rotation for a rebuilding team gives him a chance to get his career back on track with an eye on hitting the open market as a free agent again next offseason. And if he fares well, the Braves could use him to add a prospect or two at the trade deadline.