The Braves are not just a baseball team. They’re a real estate company too.

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I’ve taken the Braves to task quite a bit in this space lately. This post and then, later, this post got a lot of attention, both from Braves fans who agree and nod their head and those who disagree and think I’m an overly cynical bad fan or whatever.

I don’t think I’m a bad fan or that I’m cynical. I just look at the facts on the ground and draw conclusions from them. The overarching fact that seems to matter here — separate and apart from any individual move or non-move the Braves front office makes — is that the Braves, as an organization, have interests other than winning baseball games and those interests, in turn, cannot help but impact the Braves’ approach to winning baseball games.

Interests like real estate. As the Cobb Business Journal reported yesterday, the Braves are involved in a complex bond transaction, the details of which bore me, but the upshot of which is that the Braves are building office towers:

The Development Authority of Cobb County signed off on a necessary step for the Braves to get the loan on Tuesday . . . Jonathan Smith, deputy general counsel for the Braves, said at Tuesday’s meeting that the project will span about four acres owned by the Braves. About half the land is being leased by Thyssenkrupp for the R&D tower, which the German conglomerate will own.

The other half will house the office building, which the Braves are building and will own, according to Smith. Half the office building is being leased to Thyssenkrupp, Smith said, and the other half is being leased to other companies, though no tenants have been announced yet.

This is all part of the Battery complex which surrounds SunTrust Park and in which the Braves — through a vehicle called Braves Development Company — have a substantial interest. When you appreciate the magnitude of that development and the sort of revenue the Braves are realizing from it now and will realize in the future, it’s hard not to conclude that the Braves did not get SunTrust Park built for them simply or even primarily to become a more competitive baseball team. They got it built for them so that they can become a real estate development company that happens to have a baseball team as one of its many components.

And don’t think that that the relationship between the development and the ball club is some weak and attenuated thing. Check out the Braves’ org chart, as set forth on MLB.com, with my highlight added:

Whatever the legal relationship is between Braves Development Company and the baseball team, both entities answer to Terry McGuirk, apparently on equal footing based on the titles of the people who run them. As such, when McGuirk says, as he did last week, that he “couldn’t be more optimistic” about the Atlanta Braves, it makes one wonder if he means the baseball team or the overall venture, only one part of which is concerned with baseball. Indeed, one of his answers to the question about why all the increased revenues aren’t being plowed into the team was “it costs a lot to build this edifice.” That answer was likely more literal than most people understood.

Sure, the Braves want to win — I truly believe them when they say they want to — but achieving that desire is far less critical to the Braves, financially speaking, than it would be if they did not have office towers to build, own and lease out with favorable tax treatment and other governmental assistance. The hit from missing the playoffs, for example, is a drop in the bucket compared to what it might’ve been back when they played in Turner Field or Fulton County Stadium. At the same time, money that is realized by the Braves, their real estate ventures, or both, can be used in any number of ways. Maybe the baseball team is the priority sometimes. Maybe it’s not.

Observing that does not make one cynical. The Braves are a baseball team with real estate interests. Or maybe they’re a real estate company with baseball interests. The proper way to characterize that depends on a lot of stuff about their financials and their priorities the Braves are likely unwilling to share with us, but it’s a simple fact that they have priorities that have little if anything to do with baseball. It’s fair game, then, to question the organization’s priorities when scrutinizing the baseball decisions they make.

Texas Rangers ink free-agent ace Jacob deGrom to 5-year deal

Jacob deGrom
USA Today
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ARLINGTON, Texas — Jacob deGrom is headed to the free-spending Texas Rangers, who believe the health risk is worth the potential reward in trying to end a six-year run of losing.

The two-time Cy Young Award winner agreed to a $185 million, five-year contract Friday, leaving the New York Mets after nine seasons – the past two shortened substantially by injuries.

“We acknowledge the risk, but we also acknowledge that in order to get great players, there is a risk and a cost associated with that,” Rangers general manager Chris Young said. “And one we feel like is worth taking with a player of Jacob’s caliber.”

Texas announced the signing after the 34-year-old deGrom passed his physical. A person with direct knowledge of the deal disclosed the financial terms to The Associated Press. The person spoke on condition of anonymity because the club did not announce those details.

The Rangers were also big spenders in free agency last offseason, signing shortstop Corey Seager ($325 million, 10 years) and second baseman Marcus Semien ($175 million, seven years).

The team said deGrom will be introduced in a news conference at Globe Life Field next week following the winter meetings in San Diego.

“It fits in so many ways in terms of what we need,” Young said. “He’s a tremendous person. I have a number of close friends and teammates who played with Jacob and love him. I think he’s going to be just a perfect fit for our clubhouse and our fans.”

Texas had modest expectations after adding Seager, Semien and starter Jon Gray ($56 million, four years) last offseason but still fell short of them.

The Rangers went 68-94, firing manager Chris Woodward during the season, and then hired Bruce Bochy, a three-time World Series champion with San Francisco. Texas’ six straight losing seasons are its worst skid since the franchise moved from Washington in 1972.

Rangers owner Ray Davis said the club wouldn’t hesitate to keep adding payroll. Including the $19.65 million qualifying offer accepted by Martin Perez, the team’s best pitcher last season, the Rangers have spent nearly $761 million in free agency over the past year.

“I hate losing, but I think there’s one person in our organization who hates losing worse than me, and I think it’s Ray Davis,” Young said. “He’s tired of losing. I’m tired of losing. Our organization is tired of losing.”

After making his first start in early August last season, deGrom went 5-4 with a 3.08 ERA in 11 outings. He helped the Mets reach the playoffs, then passed up a $30.5 million salary for 2023 and opted out of his contract to become a free agent for the first time.

That ended his deal with the Mets at $107 million over four years, and deGrom rejected their $19.65 million qualifying offer in November. New York will receive draft-pick compensation for losing him.

The fan favorite becomes the latest in a long line of ace pitchers to leave the Mets for one reason or another, including Nolan Ryan, Tom Seaver, Dwight Gooden and David Cone.

The Rangers visit Citi Field from Aug. 28-30.

When healthy, deGrom is perhaps baseball’s most dominant pitcher. His 2.52 career ERA ranks third in the expansion era (since 1961) behind Los Angeles Dodgers lefty Clayton Kershaw (2.48) and Hall of Famer Sandy Koufax (2.19) among those with at least 200 starts.

The right-hander is 4-1 with a 2.90 ERA in five career postseason starts, including a win over San Diego in the wild-card round this year that extended the Mets’ season. New York was eliminated the next night.

A four-time All-Star and the 2014 NL Rookie of the Year, deGrom was a ninth-round draft pick by the Mets in 2010 out of Stetson, where he played shortstop before moving to the mound. He was slowed by Tommy John surgery early in his career and didn’t reach the majors until age 26.

Once he arrived, though, he blossomed. He helped the Mets reach the 2015 World Series and earn a 2016 playoff berth before winning consecutive NL Cy Young Awards in 2018 and 2019.

But injuries to his elbow, forearm and shoulder blade have limited him to 26 starts over the past two seasons. He compiled a career-low 1.08 ERA over 92 innings in 2021, but did not pitch after July 7 that year because of arm trouble.

DeGrom is 82-57 with 1,607 strikeouts in 1,326 innings over nine big league seasons. He gets $30 million next year, $40 million in 2024 and 2025, $38 million in 2026 and $37 million in 2027. The deal includes a conditional option for 2028 with no guaranteed money.

The addition of deGrom gives the Rangers three proven starters along with Gray and Perez, who went 12-8 with a career-best 2.89 ERA in his return to the team that signed him as a teenager out of Venezuela. Young didn’t rule out the addition of another starter.

With several holes on their starting staff, the Mets have shown interest in free agents Justin Verlander and Carlos Rodon to pair with 38-year-old Max Scherzer atop the rotation.

Now, with deGrom gone, signing one of those two could become a much bigger priority.