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.”
New Mariners general manager Jerry Dipoto has kept pretty busy in his short time on the job and Bob Dutton of the Tacoma News Tribune reports that free agent outfielder Nori Aoki could be his next target. The club recently pursued a trade for Marlins outfielder Marcell Ozuna, but the asking price has them looking at alternatives.
Aoki, who turns 34 in January, has hit .287 with a .353 on-base percentage over four seasons since coming over from Japan. He was having a fine season with the Giants this year prior to being shut down in September with lingering concussion symptoms.
The Giants decided against picking up Aoki’s $5.5 million club option for 2016 earlier this month, but he should still do pretty well for himself this winter assuming he’s feeling good.
It was reported Sunday that free agent right-hander Johnny Cueto had turned down a six-year, $120 million contract from the Diamondbacks. He’s hoping to land a bigger deal this winter and ESPN’s Jerry Crasnick has heard some chatter about what he’s looking for.
Jordan Zimmermann finalized a five-year, $110 million contract with the Tigers today, which works out to $22 million per season. Arizona’s offer to Cueto checked in at $20 million per season. A six-year offer to Cueto at the same AAV (average annual value) as Zimmermann would put him at $132 million, which is still a little shy of the figure stated by Crasnick. Of course, Cueto owns a 2.71 ERA (145 ERA+) over the last five seasons compared to a 3.14 ERA (123 ERA+) by Zimmermann during that same timespan, so there’s a case to be made that he should get more. Still, he’s the clear No. 3 starter on the market behind David Price and Zack Greinke.
CBS Sports’ Jon Heyman reports that the Dodgers, Giants, Red Sox, and Cubs are among the other teams who have interest in Cueto. One variable in his favor is that he is not attached to draft pick compensation, as he was traded from the Reds to the Royals during the 2015 season.
The rebuilding Braves have already been active on the trade market and they might not be done, as CBS Sports’ Jon Heyman reports that right-hander Shelby Miller has been a very popular name. In fact, around 20 teams have checked in.
Nothing is considered close and the Braves have set a very high asking price, mostly centered around offense. They asked for right-hander Luis Severino in talks with the Yankees and would expect outfielder Marcell Ozuna among other pieces from the Marlins. The Diamondbacks and Giants are among the other interested clubs.
Miller is under team control through 2018, so there’s not necessarily a sense of urgency to move him, but anything is possible with the way the Braves are doing things right now. The 25-year-old is coming off a year where he went 6-17, but that was about really rotten luck more than anything else, as he had a fine 3.02 ERA and 171/73 K/BB ratio over 205 1/3 innings. The Braves gave him the worst run support of any starter in the majors.
Jenrry Mejia appeared in just seven games this past season due to a pair of suspensions for performance-enhancing drugs, but Adam Rubin of ESPN New York reports that the Mets are expected to tender him a contract for 2016.
While the Mets were vocal about their disappointment in Mejia’s actions, it makes sense to keep him around as an option. Had he played a full season in 2015, he would have earned $2.595 million. He’s arbitration-eligible for the second time this winter and figures to receive a contract similar to his 2015 figure, but he’ll only be paid for the games he plays. He still has 100 games to serve on his second PED suspension, which means that he’ll only be paid for 62 games in 2016. This likely puts his salary closer to $1 million, which is a small price to pay for someone who could prove useful during the second half and beyond. He also won’t count toward the team’s 40-man roster until he’s active.
Mejia, who turned 26 in October, owns a 3.68 ERA in the majors and saved 28 games for the Mets in 2014. He’s currently pitching as a starter in the Dominican Winter League.