We saw last week that the final approval of the transfer of the San Diego Padres to Jeff Moorad had hit a snag based on some financial consideration or other. At Forbes today, Mike Ozanian gets a little closer to the problem:
The sale of controlling interest of the San Diego Padres to Jeff Moorad by John Moores has been delayed by Major League Baseball because the league is not convinced of the net worth of Moorad’s limited partners.
Ozanian says that the limited partners are being “put under the microscope.”
Like I said the other day, I suppose this is a good thing if it means that MLB is now taking the financial stability of its owners seriously in light of the Frank McCourt/Fred Wilpon debacles. Still, it’s not like Moorad is new to the scene here, having been slowly taking over the Padres for a couple of years now.
Even Drellich of The Athletic reports that the Boston Red Sox are cutting the pay of team employees. Those cuts, which began to be communicated last night, apply to all employees making $50,000 or more. They are tiered cuts, with people making $50-99,000 seeing salary cut by 20%, those making $100k-$499,000 seeing $25% cuts and those making $500,000 or more getting 30% cuts.
Drellich reported that a Red Sox employee told him that “people are livid” over the fact that those making $100K are being treated the same way as those making $500K. And, yes, that does seem to be a pretty wide spread for similar pay cuts. One would think that a team with as many analytically-oriented people on staff could perhaps break things down a bit more granularly.
Notable in all of this that the same folks who own the Red Sox — Fenway Sports Group — own Liverpool FC of the English Premier League, and that just last month Liverpool’s pay cut/employee furlough policies proved so unpopular that they led to a backlash and a subsequent reversal by the club. That came after intense criticism from Liverpool fan groups and local politicians. Sox owner John Henry must be confident that no such backlash will happen in Boston.
As we noted yesterday, The Kansas City Royals, who are not as financially successful as the Boston Red Sox, have not furloughed employees or cut pay as a result of baseball’s shutdown in the wake of the COVID-19 pandemic. Perhaps someone in Boston could call the Royals and ask them how they managed that.