Blog Entry

Crane to finance Astros with $300 million in debt

Posted on: May 17, 2011 1:17 pm
Edited on: May 17, 2011 1:21 pm
 
By Evan Brunell

Jim Crane's purchase of the Astros will be heavily leveraged, with almost 50 percent of the total purchase price financed with debt, Forbes reports.

Crane is purchasing the Astros, the lease to Minute Maid Park and one-third interest in a new regional sports network slated to debut next year for $680 million, of which roughly $300 million will be financed with debt.

Forbes notes that baseball's debt rules -- which commissioner Bud Selig is so adamant about making sure the Dodgers meet -- require that you cannot have more than 10 times your earnings before interest, taxes, depreciation and amortization in debt. Given Houston's operating income in 2010 was $14 million, Crane's $300 million in debt are more than double the alloted amount. Does baseball really want another team to add to the Dodgers and Mets that are in financial straits?

And yet, it's virtually assured that Crane will end up with the team. It pays to be one of Selig's boys.

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Category: MLB
Comments

Since: Dec 2, 2011
Posted on: December 10, 2011 12:41 pm
 

Crane to finance Astros with $300 million in debt

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Since: Dec 2, 2011
Posted on: December 6, 2011 10:36 am
 

Crane to finance Astros with $300 million in debt

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Since: Apr 22, 2009
Posted on: May 18, 2011 9:38 am
 

Crane to finance Astros with $300 million in debt

Each of the teams that I listed were teams that has poor, poor ownership.  Astros problems go back to ENRON days, Mets are in worse fical shape than the Dodgers or Astros. The Dodgers, you see what has happened to them because of the OWNERS.  The Dodgers better get new ownership quick or baseball will do the same to them as they did to the Expos (empty the minors of all their talented players for one or two runs for playoffs, thereby increasing their value).  There are rumblings here that the Dodgers may EVEN be returning to BROOKLYN, (if they can get rid of the Mets).



Since: Mar 29, 2011
Posted on: May 17, 2011 8:22 pm
 

Crane to finance Astros with $300 million in debt

another team in hot water... MLB will own you too soon.



Since: Sep 3, 2009
Posted on: May 17, 2011 7:09 pm
 

Crane to finance Astros with $300 million in debt

The fact is too much MONEY is being paid to these stars and its finally catching up with whats happened to the econemy. Think about it, how can these outrageous salaries keep going up when more and more real world jobs are being cut and the price of living keeps going up. Less and less people can afford to go to these games and just wont if a team absolutely sucks.



Since: May 17, 2008
Posted on: May 17, 2011 3:37 pm
 

Crane to finance Astros with $300 million in debt

Baseball has too many baseball teams and the Dodgers, Astros, and Mets need to be eliminated from baseball. 


You are nuts.  There is noway these team are going to be, or need to be, eliminated from baseball -- especially the Dodgers.  Baseball may force the McCourt's to sell the Dodgers but they would never consider contracting them.  While declining under the McCourts, the Dodgers consistently are one of the highest drawing teams, they have revenue usually in the top 5 to 8 of all MLB teams....the McCourts have just not spent it wisely....and they are only 1 year removed from two straight NLCS appearances.  No offense to anyone but teams like the Pirates, Royals or other small market, typically non-competitive teams, would be contracted (not that I think they should be, baseball just needs a salary cap) long before a team with the history of the Dodgers.



Since: May 17, 2008
Posted on: May 17, 2011 3:31 pm
 

Crane to finance Astros with $300 million in debt

I just do not understand how baseball can let this happen.  I have a feeling that Mark Cuban could easily have paid the whole amount for the team without financing at all. 
To answer the first part, go back to the article and "It pays to be one of Selig's boys".  Normally I am not as anti-Selig as most people and agree that the McCourts messed up my Dodgers big time, but this would certainly seem to give the McCourts a good legal argument to get MLB's "monitor" out of their hair.  If Selig is going to let the Astros be sold to an owner who is immediately in breach of the debt rules then he has to let the Dodgers be in breach of the same rules.

As for Mark Cuban -- (1) you are assuming he wanted to buy the Astro's, I never heard him say either way--maybe it was the Rangers or nothing for him, who knows.  (2) You may be surprised, and I don't know about Cuban's finances with any detail, but often even billionaires do not have or do not want to spend $680million in cash in a transaction.



Since: Feb 11, 2009
Posted on: May 17, 2011 2:51 pm
 

Crane to finance Astros with $300 million in debt

I just do not understand how baseball can let this happen.  I have a feeling that Mark Cuban could easily have paid the whole amount for the team without financing at all.  It looks like another Dodgers/Mets problem and why put that in again.  If this had happened a few years ago, I would have said Crane was going to flip the team for a quick profit.  Now, I just do not know what is going on



Since: Aug 30, 2008
Posted on: May 17, 2011 2:39 pm
 

Crane to finance Astros with $300 million in debt

Astros do not need to be eliminated. Drayton McClain refused to put any money into the organization after the World Series because he was taking profits and knew he was going to sell the team. The farm system is garbage because we have no scouts, the pro team is garbage because Drayton would not sign any of the draft picks over the past few seasons. Between 1997 and 2005 the Astros were prominant and profittable. They will be again with new ownership that wants to win and just not take profits. We are not the Pittsburgh Pirates.



Since: Apr 22, 2009
Posted on: May 17, 2011 2:15 pm
 

Crane to finance Astros with $300 million in debt

Baseball has too many baseball teams and the Dodgers, Astros, and Mets need to be eliminated from baseball. 


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