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
Sebastian
for his generous support.

Bookmarks

You must be logged in to view your Bookmarks.

Hot Topics

NewsblogOTP 23 Jan. 2017: Theo Epstein on baseball, politics and what he may do next
(368 - 12:24pm, Jan 24)
Last: Ray (RDP)

NewsblogLooters left Ventura to die, according to unconfirmed reports - Royals Review
(7 - 12:16pm, Jan 24)
Last: Random Transaction Generator

Hall of Merit2018 Hall of Merit Ballot Discussion
(126 - 12:11pm, Jan 24)
Last: Carl Goetz

Newsblog$20M owed to Yordano Ventura likely hinges on his toxicology report
(5 - 12:11pm, Jan 24)
Last: Stevis

NewsblogOT - December 2016 NBA thread
(1247 - 12:09pm, Jan 24)
Last: Manny Coon

NewsblogGary Sheffield and the war on WAR - Beyond the Box Score
(92 - 12:08pm, Jan 24)
Last: Ray (RDP)

NewsblogScott Simkus plays Strat-o-Matic with Negro Leaguers for Slate
(71 - 11:25am, Jan 24)
Last: Kirby Kyle

NewsblogThe Hidden Effects of Jet Lag on Baseball Players - WSJ
(2 - 11:19am, Jan 24)
Last: BDC

Hall of MeritMost Meritorious Player: 2000 Ballot
(8 - 11:02am, Jan 24)
Last: caiman

NewsblogRyan Zimmerman hits hard but needs to add lift | MLB.com
(6 - 10:59am, Jan 24)
Last: jingoist

NewsblogDodgers Trade Prospect Jose De Leon Straight-Up to Tampa for Logan Forsythe
(15 - 10:50am, Jan 24)
Last: PreservedFish

Gonfalon CubsCubs roster update - post Winter Meetings
(79 - 10:27am, Jan 24)
Last: Moses Taylor, Unwavering Optimist

NewsblogHarris eager to show Cardinals result of elbow surgery | St. Louis Cardinals | stltoday.com
(1 - 10:23am, Jan 24)
Last: Perry

NewsblogOT - NFL stretch drive/playoffs (December 2016 - February 2017)
(807 - 10:08am, Jan 24)
Last: Nasty Nate

Newsblog2017 Top 10 third base prospects | MLB.com
(3 - 9:00am, Jan 24)
Last: Random Transaction Generator

Page rendered in 0.2207 seconds
47 querie(s) executed