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
Jim Wisinski
for his generous support.

Bookmarks

You must be logged in to view your Bookmarks.

Hot Topics

NewsblogOT: Monthly NBA Thread - May 2015
(2294 - 1:34pm, May 25)
Last: Rickey! isn't dirty, he just *hustles*

NewsblogOTP - May 2015: Jeb Bush would like to watch baseball with Teddy Roosevelt and Pitbull
(3807 - 1:34pm, May 25)
Last: bobm

NewsblogCollege Seniors Find Little Leverage - BaseballAmerica.com
(6 - 1:31pm, May 25)
Last: Lars6788

NewsblogAll-Star Game shouldn't stop slumping Reds from firing Price | FOX Sports
(10 - 1:28pm, May 25)
Last: PASTE Thinks This Trout Kid Might Be OK (Zeth)

NewsblogWaPo: Aaron Barrett wins epic post-anthem standoff
(11 - 1:14pm, May 25)
Last: bunyon

NewsblogBernie Williams Day reminds us Yankees' glory days are over - Newsday
(2 - 1:04pm, May 25)
Last: Gonfalon Bubble

NewsblogOT: Soccer March 2015
(1080 - 1:04pm, May 25)
Last: frannyzoo

NewsblogBrian Matusz of Baltimore Orioles ejected for foreign substance
(14 - 12:46pm, May 25)
Last: ReggieThomasLives

NewsblogShaikin: Rally monkey, chew on this: Dodgers try the rally banana
(14 - 12:41pm, May 25)
Last: tshipman

NewsblogIs switch-hitting a lost art? - Sports - The Boston Globe
(13 - 12:28pm, May 25)
Last: ERROR---Jolly Old St. Nick

NewsblogOT: 2015 NHL Playoff thread
(468 - 11:57am, May 25)
Last: zack

NewsblogAngels again are stung by Mike Napoli in loss to Red Sox - LA Times
(3 - 11:49am, May 25)
Last: Russ

NewsblogHolding Separate Elections For Player and Non-Player Candidates Would Greatly Improve the Hall of Fame's Era Ballot Vote Process
(34 - 7:58am, May 25)
Last: Dennis Eclairskey, closer

NewsblogDJ Short: UPDATE: David Wright diagnosed with spinal stenosis
(19 - 7:43am, May 25)
Last: Dennis Eclairskey, closer

NewsblogBBTF 2015 Shooty Memorial Softball Meet-up!
(244 - 7:19am, May 25)
Last: villageidiom

Page rendered in 0.1607 seconds
48 querie(s) executed