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

News

All News | Prime News

Old-School Newsstand


BBTF Partner

Support BBTF

donate

Thanks to
Traderdave
for his generous support.

Bookmarks

You must be logged in to view your Bookmarks.

Hot Topics

NewsblogOT - March 2017 NBA thread
(7003 - 4:44am, Jun 23)
Last: maccoach57

NewsblogYour 2017 MLB local broadcaster rankings
(50 - 2:46am, Jun 23)
Last: Bote Man

NewsblogOTP 19 June 2017: Bipartisan baseball: Dems best GOP, give trophy to wounded Scalise
(776 - 2:40am, Jun 23)
Last: RollingWave

NewsblogBeyond the Box Score: On the lack of interest in Albert Pujols’s 600 HR and Adrián Beltré’s pursuit of 3,000 hits
(51 - 2:37am, Jun 23)
Last: SoSHially Unacceptable

NewsblogKyle Schwarber headed back to Triple-A Iowa
(32 - 2:31am, Jun 23)
Last: Walt Davis

NewsblogRecounting the many ways baseball has changed in 20 years
(22 - 2:02am, Jun 23)
Last: Walt Davis

NewsblogCan rising prospect be roundabout solution to Yankees’ 1st base problem? | New York Post
(9 - 1:58am, Jun 23)
Last: The Yankee Clapper

NewsblogMy OMNI has a second name, it's CHATTER, for June 22, 2017
(47 - 1:48am, Jun 23)
Last: Jesus Frankenstein

Sox TherapyFeeling A Draft - Part II
(10 - 1:11am, Jun 23)
Last: Dillon Gee Escape Plan

NewsblogJarrod Dyson breaks up perfect game with bunt – and Justin Verlander isn’t mad
(29 - 12:54am, Jun 23)
Last: vortex of dissipation

NewsblogNegro Leagues Baseball Museum receives $1 million gift from MLB, players union
(10 - 10:52pm, Jun 22)
Last: Alex meets the threshold for granular review

Sox TherapyWitty Minor League Thread Title Here
(35 - 10:45pm, Jun 22)
Last: Jose is El Absurd Bronson Y Pollo

NewsblogThe Mets Are Pissed At Yasiel Puig For Admiring His Homer
(52 - 10:35pm, Jun 22)
Last: The Duke

NewsblogA’s owners say moving four miles to new stadium will create $3B in economic benefits, I’m done | Field of Schemes
(33 - 9:53pm, Jun 22)
Last: McCoy

NewsblogPablo Sandoval placed on the disabled list with an inner ear infection
(33 - 9:50pm, Jun 22)
Last: 6 - 4 - 3

Page rendered in 0.2182 seconds
47 querie(s) executed