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.
Buster Posey has opted out of the 2020 MLB season. The San Francisco Giants have issued a statement saying that they “fully support Buster’s decision. Buster is an integral part of our team and will be sorely missed, but we look forward to having him back in 2021.”
Posey and his wife are adopting identical twin girls who were born prematurely and who are currently in the NICU and will be for some time. They are stable, but obviously theirs is not a situation that would be amenable to the demands of a baseball season as it’s currently structured.
Poset had missed all of the Giants’ workouts so far, Recently he said, “I think there’s still some reservation on my end as well. I think I want to see kind of how things progress here over the next couple of weeks. I think it would be a little bit maybe naive or silly not to gauge what’s going on around you, not only around you here but paying attention to what’s happening in the country and different parts of the country.” He said that he talked about playing with his wife quite a great deal but, really, this seems like a no-brainer decision on his part.
In opting out Posey is foregoing the 60-game proration of his $21.4 million salary. He is under contract for one more year at $21.4 million as well. The Giants can pick up his 2022 club option for $22 million or buy him out for $3 million.
A veteran of 11 seasons, Posey has earned about $124 million to date. Which seems to be the common denominator with players who have opted out thus far. With the exception of Joe Ross and Héctor Noesí, the players to have opted out thus far have earned well above $10 million during their careers. Players that aren’t considered “high risk” and elect not to play do not get paid and do not receive service time.