"Ownership, Wealth and the Reds Payroll"

[BRM13]

Valid point. They may be worth that much but dont have the cash on hand.

If a team is valued at a certain amount, is it possible for a team to take out a loan to get more cash on hand? Not saying they should but asking if its possible?

I believe teams are explicitly restricted on how much debt they can have relative to value of team. Not certain about after they purchase the team, but I'm close to 100% certain they are restricted on how much debt they can have when they buy. This probably carries over, but I'm not sure. If it works like bank capital regulations, then they would need to maintain a certain percentage of equity. This WOULD allow them to borrow against increase in value. Since, we don't seem to see this (but we really have no idea what teams do, debt-wise), I suspect it is prohibited by MLB.

[BRM13]

Baseball did just fine with the Cubs being doormats for over a century.

Yeah, but while the Cubs were sucking the Yankees did pretty well. So did the Dodgers. And Cardinals. And Giants. Plenty of big markets carried the water for the rest of MLB.

[BernieCarbo]

Yeah, but while the Cubs were sucking the Yankees did pretty well. So did the Dodgers. And Cardinals. And Giants. Plenty of big markets carried the water for the rest of MLB.

At the same time, the St Louis Browns, Phillies, White Sox, and Brooklyn sucked. Sooner or later, people have to admit that management matters despite the market size. I mean, remember when the Reds were good just a few years ago?

[Kc61]

I believe teams are explicitly restricted on how much debt they can have relative to value of team. Not certain about after they purchase the team, but I'm close to 100% certain they are restricted on how much debt they can have when they buy. This probably carries over, but I'm not sure. If it works like bank capital regulations, then they would need to maintain a certain percentage of equity. This WOULD allow them to borrow against increase in value. Since, we don't seem to see this (but we really have no idea what teams do, debt-wise), I suspect it is prohibited by MLB.

There are debt service rules in MLB. Much has been written about the Dodgers’ being over debt limits. One 2016 article said the formula then was generally 12 times revenue less expenses.

We don’t know whether the Reds have already borrowed, to what extent, how much capacity they have currently. But if there’s truly a billion of equity there is probably a way to raise some money for spending on salary to be competitive.

[BCubb2003]

It could always be worse:

Ex-Marlins President Brags About Fleecing Fans, Taxpayers in $1.2 Billion Team Sale

https://www.miaminewtimes.com/news/m...-sale-10956381

[WrongVerb]

It could always be worse:

Ex-Marlins President Brags About Fleecing Fans, Taxpayers in $1.2 Billion Team Sale

https://www.miaminewtimes.com/news/m...-sale-10956381

"Thank you so much; thank you very much," a drunk-sounding Samson stammered into a microphone as Le Batard lumbered behind him. "Here's why I love when you guys boo me. Right. I want you to keep booing me. Because guess what? One-point-two billion. **** you!"

Wow.

[The Operator]

Wow.

Jeffrey Loria and David Samson are both the absolute scum of the earth.

[Bob Sheed]

Probably best to keep the Williams family away from alcohol and a microphone too.

[Tom Servo]

Jeffrey Loria and David Samson are both the absolute scum of the earth.

Cubs owners aren't looking much better if you look at their recently released emails.

[WrongVerb]

Cubs owners aren't looking much better if you look at their recently released emails.

I went to the mall yesterday for some Christmas shopping. Watching average people (including me) pawing over all the worthless crap in stores made me wonder just how much contempt for us the capitalist class has. You don't see them in these cookie cutter stores that populate the malls. They own those stores. But deep down, I wonder what they feel about their customers.

I won't say anymore for fear of treading into topics better covered in the P&R forum of this site.

[Larry Schuler]

I went to the mall yesterday for some Christmas shopping. Watching average people (including me) pawing over all the worthless crap in stores made me wonder just how much contempt for us the capitalist class has. You don't see them in these cookie cutter stores that populate the malls. They own those stores. But deep down, I wonder what they feel about their customers.

I won't say anymore for fear of treading into topics better covered in the P&R forum of this site.

Master-slave dialectic, dawg.

[Falls City Beer]

Nah, Loria and Samson are just bad apples. The rest are honorable men.

[The Operator]

Nah, Loria and Samson are just bad apples. The rest are honorable men.

I have no doubt they're all horrible.

But Loria and Samson really are at a different level. Ruin baseball in Montreal and then con Miami out of billions? That's a pretty impressive rap sheet.

[Falls City Beer]

I have no doubt they're all horrible.

But Loria and Samson really are at a different level. Ruin baseball in Montreal and then con Miami out of billions? That's a pretty impressive rap sheet.

I know you weren’t suggesting they were bad apples. I was just throwing my two cents into the bucket.

[BernieCarbo]

I went to the mall yesterday for some Christmas shopping. Watching average people (including me) pawing over all the worthless crap in stores made me wonder just how much contempt for us the capitalist class has.

I'd be worrying about how much contempt your wife has for you if you were shopping for her in a mall.