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Saturday, May 13, 2017

Jeter-Bush Have Cash-Raising Woes for Marlins Bid, Giving Romney Leg Up

Doug Hanks @doug_hanks
Untold story behind this: Bush people really don’t like the Romney people. Blame them for bad press.

But what might look good in theory is proving to be a difficult sale with potential investors, as many have declined an invitation to become silent partners of the Jeter-Bush team. Both Jeter and Bush are wealthy, but they are far from billionaires, and are planning to invest just $50 million combined, while raising money from outside investors, people with direct knowledge of the bidding process say.

That doesn’t mean the Jeter-Bush bid is dead. In fact, many people on Wall Street speculate that the duo’s investment banker, Gregory Fleming — a former senior executive at Morgan Stanley (MS) and Merrill Lynch (BAC) — may now be looking to raise money from his vast network of contacts in China and Latin America, many of whom would be willing to put up significant sums of cash as silent investors, while allowing Jeter and Bush to run the team.

 

Did it work?

Bote Man Posted: May 13, 2017 at 07:27 AM | 12 comment(s) Login to Bookmark
  Tags: derek jeter, jeb bush, marlins, mitt romney, team sales

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   1. Curtschillingsdingleberrybatboy Posted: May 13, 2017 at 11:39 AM (#5454729)
One thing the Marlins franchise has going for it is that the new owner could decide to employ the tank-to-win strategy and few would be the wiser. Could they trade Stanton without kicking in any money? I bet Detroit would take him.
   2. JJ1986 Posted: May 13, 2017 at 12:03 PM (#5454732)
I thought a poster here told us all that we'd have to assume Bush and Jeter were poor businessmen if they didn't have the money already lined up.
   3. snapper (history's 42nd greatest monster) Posted: May 13, 2017 at 12:27 PM (#5454734)
Both Jeter and Bush are wealthy, but they are far from billionaires, and are planning to invest just $50 million combined

Gee, people were telling me Jeter would put in $100M all by himself.

This deal has looked like BS from the beginning. The price is nuts, the lack of a real money man at the top of the syndicate. Never made sense.
I thought a poster here told us all that we'd have to assume Bush and Jeter were poor businessmen if they didn't have the money already lined up.

Since neither one has ever really run a business, them being poor businessmen should be no surprise.
   4. ReggieThomasLives Posted: May 13, 2017 at 12:47 PM (#5454743)
They just need 1,250 people to put up $1M each, how hard can it be?
   5. 6 - 4 - 3 Posted: May 13, 2017 at 12:59 PM (#5454748)
One thing the Marlins franchise has going for it is that the new owner could decide to employ the tank-to-win strategy and few would be the wiser. Could they trade Stanton without kicking in any money? I bet Detroit would take him.

Not really. Constraint on that is needing the turn around to be completed by 2020, which is when they renegotiate the television contract. Given that it doesn't seem likely that a deal will close before the 2017 trading deadline, they won't have the time needed to rebuild. Whoever takes over the team is looking at incurring major losses in the initial years because they'll need to improve team performance (and ratings) to maximize their chances at landing the lucrative television contract for 2021 and beyond.

Given the durability questions, Stanton is presently untradeable because of his contract (he also has a full no trade clause). To move him, Marlins would have to pick up a *significant* amount of money (or assume another bad contract(s), which would defeat the purpose) and get very little value in return. The only Marlin set to earn significant money in future years with positive trade value is Christian Yelich (there would be some interest in Dee Gordon, but he doesn't project to have much surplus value so return for him would be limited).

Finally, not sure why Detroit (which has Upton and JD Martinez in the corner outfield, plus Cabrera and Victor Martinez at 1B/DH) would be interested in trading for him in 2017. They have also indicated that they are looking to cut payroll in coming seasons (i.e., not willing to burn cash now that Mike Illitch is dead). Seems to me like Detroit is one of the least likely of the 29 other teams to ever trade for Stanton, even though they're likely losing JD Martinez to FA after 2017.
   6. fra paolo Posted: May 13, 2017 at 01:41 PM (#5454758)
not willing to burn cash now that Mike Illitch is dead

I don't think this is a fair reading. The Tigers started making noises about reining-in spending during the 2015-16 offseason, then signed Jordan Zimmermann to a contract that looks bad now and Justin Upton to a deal with an opt-out. It might be more accurate to say they are 'not willing to burn cash now that they are at the end of a "success cycle"'. The Tigers have judged things rather nicely. They have one of a handful of players who can claim to be a sure-fire HoFer currently active for a while yet, plus a few years of Verlander, Zimmermann (fingers crossed) and Upton, all names who will still pull in the fans for a little bit longer. What they need now is to swing another Cabrera-style deal for someone with two more years before arbitration and a team that might not be able to afford a big contract -- but there are no likely candidates, are there? (Preferably a left-handed hitter who can bat cleanup.)

As for buying the Marlins, if TFA is right, then MLB have a significant control over the process. They can set up an arbitrary rule about the amount of cash reserves the buyer needs specifically in order to block someone like Jeter, who once was in the MLBPA and who knows how close he might be to current members. Or perhaps some of them don't like Jeb as being a little too political. Or maybe some of them like other buyers better because they lack the high-profile to upset a nice little cabal in a major entertainment industry. It's all just guesswork at this moment.
   7. Misirlou doesn't live in the restaurant Posted: May 13, 2017 at 02:00 PM (#5454763)
Gee, people were telling me Jeter would put in $100M all by himself.


I never argued he would. I argued he could.
   8. The Yankee Clapper Posted: May 13, 2017 at 02:18 PM (#5454771)
The article indicates that the Jeter - Bush group raised the money for the purchase price, and now are addressing what is said to be a new MLB requirement for an additional cash reserves. Not sure how accurate any of the reporting is - mostly anonymous sources, probably linked to the competing bidders. Earlier reports said MLB owners favored the Jeter - Bush group because they were thought to have the best chance to increase fan support, bring in significant additional revenue, and thus end the revenue sharing drain on other franchises. I would think that whichever group is thought most capable of doing that will eventually get the nod.
   9. Bug Selig Posted: May 13, 2017 at 03:20 PM (#5454790)
I don't think this is a fair reading.
I do. Many of the bidding-against-themselves deals (Magglio, Fielder, V-Mart extension, Cabrera extension at a minimum) were brokered by Mr. I himself. He knew how old he was and wanted to win one - as is his right. But he did so to the clear detriment of the current and future state of the franchise.
   10. Howie Menckel Posted: May 13, 2017 at 05:16 PM (#5454859)
how many years has it been since "Jeter-Bush" was in a headline?
   11. The Yankee Clapper Posted: May 27, 2017 at 06:49 PM (#5464171)
Latest update appears to indicate the sale is progressing:
The Marlins are negotiating purchase agreements with groups led by both Jeb Bush and Tagg Romney, fully intending to strike a deal with one of those two groups in the coming weeks, an MLB source briefed on the situation said Saturday.

The Bush/Derek Jeter group is further along in completing a purchase agreement with the Marlins than the Romney group and Bush/Jeter remain a slight favorite, the source said. But the Romney group, which features former major-league pitchers Tom Glavine, Dave Stewart and others, remains in contention.

Both Bush and Romney have assured the Marlins and MLB that they have enough investors, and enough money from those investors, to meet the $1.3 billion asking price. But neither has completed partnership agreements with those investors – written agreements that are required by MLB and must be approved by MLB - that would assure, beyond question, that those investors have fully committed to invest in those respective ownership groups.

Maybe an announcement at the All-Star game, which just happens to be in Miami?
   12. TVerik, who wonders what the hell is "Ansky" Posted: May 27, 2017 at 10:38 PM (#5464217)
If Jeb! ends up the ceremonial owner of a baseball team while scandal-plagued Trump slogs through being President for a couple of years, who actually won the primary?

Also, it would not surprise me if Tom Glavine's bid is just a bit outside of what they were looking for, but is considered "close enough".

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