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
cardsfanboy
for his generous support.

Bookmarks

You must be logged in to view your Bookmarks.

Hot Topics

NewsblogOT: Politics, September, 2014: ESPN honors Daily Worker sports editor Lester Rodney
(70 - 10:19am, Sep 02)
Last: BrianBrianson

NewsblogOT: The Soccer Thread August, 2014
(989 - 10:19am, Sep 02)
Last: Shooty Survived the Shutdown of '14!

NewsblogBlue Jays Acquire Mayberry Jr.
(13 - 10:13am, Sep 02)
Last: SoSHially Unacceptable

NewsblogOT: NFL/NHL thread
(7989 - 10:09am, Sep 02)
Last: Slivers of Maranville descends into chaos (SdeB)

NewsblogPhoto of the day: Bill Murray, indy league ticket-taker
(113 - 10:01am, Sep 02)
Last: Dock Ellis on Acid

NewsblogPrimer Dugout (and link of the day) 9-2-2014
(9 - 10:01am, Sep 02)
Last: Random Transaction Generator

NewsblogOT August 2014:  Wrassle Mania I
(91 - 9:46am, Sep 02)
Last: Dock Ellis on Acid

NewsblogHBT: Jorge Soler with an extra-base hit in each of his first five games
(4 - 9:44am, Sep 02)
Last: salvomania

NewsblogTrevor Hoffman's Hall of Fame induction seems inevitable
(15 - 9:43am, Sep 02)
Last: Crispix reaches boiling point with lackluster play

NewsblogNo-hitter! Four Phillies pitchers combine to blank the Braves
(18 - 9:34am, Sep 02)
Last: Crispix reaches boiling point with lackluster play

NewsblogOT: Politics, August 2014: DNC criticizes Christie’s economic record with baseball video
(6359 - 9:32am, Sep 02)
Last: Ron J2

NewsblogAstros Fire Bo Porter
(60 - 9:12am, Sep 02)
Last: Ron J2

NewsblogOT: Monthly NBA Thread - September 2014
(7 - 8:51am, Sep 02)
Last: Famous Original Joe C

Hall of MeritMost Meritorious Player: 1957 Ballot
(11 - 8:43am, Sep 02)
Last: Tubbs & Minnie Miñoso don't fear Sid Monge

NewsblogNitkowski: Wanted: Major League manager...sort of.
(9 - 8:33am, Sep 02)
Last: zonk

Page rendered in 0.1796 seconds
52 querie(s) executed