Baseball for the Thinking Fan

Login | Register | Feedback

btf_logo
You are here > Home > Baseball Newsstand > Baseball Primer Newsblog > Discussion
Baseball Primer Newsblog
— The Best News Links from the Baseball Newsstand

Thursday, March 29, 2012

The Economist: A long Los Angeles nightmare ends

The Economist argues that the high purchase price will come back to haunt the franchise long after Frank McCourt is gone.

At this price, everything would have to go right for the new owners to make a profit. They are required to make costly capital improvements to Dodger Stadium as part of the deal. They will need to spend heavily on new players to improve the club’s lacklustre on-field performance and revive fans’ interest—particularly now that their local competitors, the Angels, have signed Albert Pujols, baseball’s best player, to a mammoth ten-year, $254m contract. And although the deal has been described as a “100% cash offer”, it is doubtful that even Guggenheim has $2 billion of its own capital lying under the mattress and available to buy a baseball team. The far more likely outcome is that the acquisition will have to be financed with a heavy debt load, whose interest payments will probably siphon off much of the franchise’s revenues and limit the owners’ ability to invest in it.

David Concepcion de la Desviacion Estandar (Dan R) Posted: March 29, 2012 at 06:07 PM | 3 comment(s) Login to Bookmark
  Tags: general

Reader Comments and Retorts

Go to end of page

Statements posted here are those of our readers and do not represent the BaseballThinkFactory. Names are provided by the poster and are not verified. We ask that posters follow our submission policy. Please report any inappropriate comments.

   1. MikeTorrez Posted: March 29, 2012 at 11:00 PM (#4092680)
The Dodgers owners might not make a profit, but the Steinbrenners certainly will...
   2. Cris E Posted: March 30, 2012 at 02:02 AM (#4092733)
You know how you can hide some revenue these days? Build a stadium. All the cool kids are doin' it. Just get a billion dollars from someone, throw in a couple hundred mil of your own to show you got skin in the game, then BAM! you count all your income as stadium payments and you're free to put $150m into payroll with no tax for the little guys. Sweeeeeet!

Wait, you don't have any more money? What's the matter with you? 2.15B + 200M + 150M is less than the GDP of Guam. It's just freaking Guam, sack up and write the check. Why'd you give that much money to parking lot boy if you can't sit at the grown up table when the game starts? Sheesh, these kids...
   3. Steve Parris, Je t'aime Posted: March 30, 2012 at 09:07 AM (#4092785)
A Guggenheim Stadium has some real possibilities.

You must be Registered and Logged In to post comments.

 

 

<< Back to main

BBTF Partner

Support BBTF

donate

Thanks to
Andere Richtingen
for his generous support.

Bookmarks

You must be logged in to view your Bookmarks.

Hot Topics

NewsblogOmar Minaya to leave San Diego Padres, join MLBPA as special adviser
(1 - 11:53pm, Jan 29)
Last: 'Spos stares out the window, waits for spring

NewsblogMake relievers face more than 1 batter for faster game, more runs | FOX Sports
(210 - 11:48pm, Jan 29)
Last: billyshears

NewsblogFangraphs: Last Year’s Minor-League WAR Leaders, If That Existed
(10 - 11:43pm, Jan 29)
Last: cardsfanboy

NewsblogPitchfork: Jack White Gets His Own Baseball Card
(198 - 11:38pm, Jan 29)
Last: GregD

NewsblogOT: Soccer January 2015
(379 - 11:38pm, Jan 29)
Last: The John Wetland Memorial Death (CoB)

NewsblogOT - Politics January 2015 - Mario Cuomo, New York Governor and Minor League Ballplayer, Dies at 82
(4122 - 11:30pm, Jan 29)
Last: Gonfalon Bubble

NewsblogOT: NFL/NHL thread
(11706 - 11:04pm, Jan 29)
Last: booond

NewsblogMontreal threat a reminder of how MLB once touted Tampa | TBO.com and The Tampa Tribune
(46 - 11:02pm, Jan 29)
Last: Walt Davis

NewsblogHow Has BABIP Held Up as Leaguewide Offense Slides Ever Lower? | Banished to the Pen
(28 - 10:52pm, Jan 29)
Last: Ziggy

NewsblogTop 100 prospects of 2015 including Kris Bryant, Byron Buxton and more - ESPN ($PAY$)
(20 - 10:39pm, Jan 29)
Last: Ziggy

NewsblogPrimer Dugout (and link of the day) 1-29-2015
(23 - 10:15pm, Jan 29)
Last: bobm

NewsblogOT: Monthly NBA Thread - January 2015
(1641 - 10:04pm, Jan 29)
Last: Der-K is at full whelm.

NewsblogRanking baseball's greatest dynasties - SweetSpot Blog - ESPN
(137 - 9:40pm, Jan 29)
Last: bbmck

NewsblogBaseball Prospectus | BP Unfiltered: People Are Currently Reading The 2015 BP Annual And You Could Be Next
(6 - 8:45pm, Jan 29)
Last: cardsfanboy

NewsblogBaseball's Choice: Change or Die | VICE Sports
(27 - 8:14pm, Jan 29)
Last: Rob_Wood

Page rendered in 0.1669 seconds
48 querie(s) executed