D-Backs CEO Resigns; Will Buy Padres

Jeff Moorad has resigned as Arizona Diamondbacks chief executive officer and says he has reached an agreement in principle to buy the San Diego Padres.

Moorad said Friday he heads a "small but significant" group of investors that has an exclusive right to complete the specifics of negotiations with Padres owner John Moores. Moorad said he hopes the transaction can be completed in the next three months.

Moorad said he has a long friendship with Moores and his wife, Becky, whose divorce precipitated the Padres' potential sale.

Discussions on the potential purchase became extensive after Moores hired Goldman Sachs to oversee the sale of the club in late November, Moorad said.

"We have a lot of work to do," Moorad said on a conference call, "but John and Becky and the folks at Goldman Sachs have been very attentive and focused as I intend to be over the next month or so. I'm hopeful that we can get to the finish line."

The Moores reportedly own 90 percent of the Padres. Community property laws in California give Becky Moores a 50 percent share of that asset and she must agree to any sale.

San Diego owner John Moores confirmed in an e-mail to The Associated Press that Moorad had exclusive negotiating rights to buy the team. Jesse Jacobs from Goldman Sachs didn't immediately return a call or e-mail seeking comment.

Moorad said he would be the majority owner if the deal goes through. He would have to sell his share of ownership in the Diamondbacks if the Padres deal is finalized.

He said he first approached Moores about buying the team when rumors surfaced that the Padres might be for sale.

"I told him that I was very happy in Arizona, that I was very excited about the organization that the Diamondbacks had become," Moorad said, "and that the only thing that would turn my head would be the possibility of returning to California, particularly Southern California."

Moores got back to him "a couple of months ago" to say that indeed he was selling the team, and the talks progressed from there. Moorad said he was required to resign from his Arizona job in order to have exclusive rights to complete negotiations with the Padres. Diamondbacks president Derrick Hall replaces Moorad as CEO.

The Moores would continue to have a share of the team's ownership for a yet undetermined number of years, Moorad said.

The transaction would come in an economy that is reeling on all fronts.

"I think sports teams will be challenged going forward as all businesses will be in the short term," Moorad said, "but I'm bullish on baseball and I'm particularly bullish on baseball in Southern California. I think we've shown in Arizona there are ways to not only survive but win even on a medium-sized market payroll."

Moorad grew up in Modesto, Calif., and graduated from UCLA in 1978 before getting his law degree at Villanova. He and his family lived in Newport Beach, Calif., for more than 20 years and still have a home there.

Moorad was a formidable agent who represented several major sports figures, including baseball's Manny Ramirez and Eric Karros, before he purchased a share of the Diamondbacks in 2004. His connection as an agent concerned other owners, so Ken Kendrick continued to serve as managing partner, representing the team in league ownership issues.

However, Kendrick said those concerns have been erased by Moorad's performance since assuming his CEO position with the Diamondbacks.

"Jeff has established himself through the years with us and I think Major League Baseball, from discussions I've had with them directly, would be comfortable with him controlling an ownership group with another club," Kendrick said.

Moorad also said he's been assured his past as an agent would not be an obstacle to him being a principle owner.

"I think he has roots that are very deep in Southern California," Kendrick said. "To get an opportunity in San Diego is exactly on point for the family in terms of that element of their lives."

Moorad lured many of the current top Diamondbacks officials, including Hall and general manager Josh Byrnes, to their jobs in Arizona. Hall joined the team in May 2005 as senior vice president, communications. Marketing-related issues were added to Hall's responsibilities in December 2005. He was promoted to president on Sept. 6, 2006, and will retain that title in addition to his new CEO position.

Hall called his promotion "bittersweet" because of his long relationship with Moorad, but added that he looked forward to the challenges of his new position.

Source: San Diego Union-Tribune

Rovell: MLB Salary Cap?

By Darren Rovell, CNBC

Milwaukee Brewers owner Mark Attanasio caused quite a stir when he told Bloomberg that the league "may need to impose a salary cap to preserve competition."

After the New York Yankees signed C.C. Sabathia, A.J. Burnett and Mark Teixeira this offseason, Attanasio said that he wasn't sure anyone could compete with them.

I understand that Mr. Attanasio might be frustrated by the fact that he doesn't think he can sign the players the Yankees have signed, but he's really misguided if he's going to try to use the competitive angle.

The last time I looked at the record books, the New York Yankees had what was always classified as outrageous payrolls and my "research" has confirmed that the Yankees haven't won a championship since 2000.

Readers of this blog know I define parity as the number of the teams that have won the championship over a certain period of time. Do I have to run the 15-year list again for Attanasio? As you can see, there's no relation here between salary caps and competitive balance. Over the last 15 years, baseball has more winners than two "capped" sports and only one fewer winner than the hardest of the capped sports.

(FYI: The NHL, NFL and NBA all have salary caps.)

Here's the list.

NFL (11 winners): Giants, Colts, Steelers, Patriots, Buccaneers, Ravens, Rams, Broncos, Packers, Cowboys and 49ers.

MLB (10 winners): Phillies, Red Sox, Cardinals, Marlins, Angels, White Sox, Diamondbacks, Yankees, Braves and Blue Jays.

NHL (9 winners): Red Wings, Ducks, Hurricanes, Lightning, Devils, Avalanche, Stars, Rangers and Canadiens.

NBA (7 winners): Celtics, Spurs, Heat, Pistons, Lakers, Bulls and Rockets.

The Yankees can make more mistakes with their money, but the idea that it somehow guarantees them a championship is completely ridiculous.

NY Times Trying To Sell Red Sox Stake

The New York Times Co is trying to sell its stake in the holding company of the Boston Red Sox baseball team, The Wall Street Journal reported on Wednesday, citing people familiar with the discussions.

The sale, which could give the Times desperately needed cash as newspaper advertising revenue falls and its debt payments loom, could involve its 17.5 percent stake in New England Sports Ventures and possibly the struggling Boston Globe daily newspaper, the Journal reported.

New England Sports Ventures owns the Red Sox, the Fenway Park baseball field where the team plays, and most of the cable network that shows their games.

A New York Times spokeswoman declined to comment.

The Journal report comes on the same day that the Times Co reported a 20 percent drop in advertising revenue in November, compared with the same period last year.

The Times has said that it is evaluating the future of its assets, which also include online encyclopedia About.com and several daily newspapers throughout the United States, as it tries to meet its debt obligations and cut its borrowing.

Debt is proving difficult for many U.S. publishers to handle because they are bringing in less cash to make them able to meet their obligations. This is partly because of the fading relevance of printed newspapers to people now used to getting news for free online. The world financial crisis has only worsened the ad sale declines.

The Times could raise at least $200 million if it sold its stake, analysts and sports bankers told Reuters earlier this month. The team, while not central to the Times's business, could be attractive to many buyers despite the recession because it is popular with fans.

Other baseball teams are up for sale as well, including the Chicago Cubs, which is owned by Tribune Co, the privately held newspaper publisher that filed for bankruptcy this month.

The Times got the Red Sox stake in 2002 as part of a group led by hedge fund manager John Henry that bought the team, Fenway Park and an 80 percent stake in the New England Sports Network. The price for the deal was $700 million, including debt. The network also includes a NASCAR auto-racing team.

Yankees Assessed $27 million Luxury Tax

The New York Yankees not only failed to make the playoffs, they were hit with their highest luxury tax in three years.

The Yankees were assessed a $26.9 million tax by the commissioner's office on Monday, up from $23.9 million last year and their biggest bill since paying nearly $34 million for 2005.

The Detroit Tigers, who also failed to qualify for the postseason, are the only other team that must pay tax and owe $1.3 million to the commissioner's office.

Checks are due by Jan. 31.

Both teams got little for what they spent. The Yankees' streak of 13 consecutive playoff appearances ended, and they finished third in the AL East at 89-73, prompting them to spend nearly a quarter-billion dollars to sign pitchers CC Sabathia and A.J. Burnett.

Detroit entered the year with lofty expectations after acquiring Miguel Cabrera and Dontrelle Willis but went 74-88 and finished last in the AL Central.

While the Yankees pay at a 40 percent rate for the amount over $155 million, the Tigers pay at a 22.5 percent rate because they exceeded the specified threshold for the first time.

This year's figure brings the Yankees' total tax to $148.5 million in the six seasons since it began - 90 percent of the total.

Before this year, the only other teams to pay were the Boston Red Sox, who owed $13.9 million for exceeding the threshold in four seasons, and the Los Angeles Angels, who paid $927,000 in 2004.

New York's payroll was $222.2 million and Detroit was second at $160.8 million for the purpose of the luxury tax. To compute it, Major League Baseball uses the average annual values of contracts for players on 40-man rosters and adds benefits.

The threshold rose from $148 million last year to $155 million this season. It goes up to $162 million next year and rises by $8 million in each of the following two seasons.

Source: Associated Press

Mets and Citigroup Still Confirmed For Naming Rights

Mets fans can rest easy. Citigroup and the New York Mets have confirmed that their record 20-year, $400 million naming rights deal for the team’s new ball park, set to open for the 2009 baseball season, is still on. Not that Citi could wiggle out of the deal anyway.

On Sunday, the struggling bank won a $326 billion bailout from the federal government. But the Mets deal was signed in 2006, when times were flush for Citi, or at least when the extent of its troubles was harder to see.

To be sure, handing over $20 million a year to the National League baseball team is a drop in the bucket compared to the magnitude of the bailout, but even the bank seems to be having second thoughts about the deal’s value.

Millions of fans and television spectators will be regularly reminded of how much Citi spent to name the baseball field, before ultimately turning to the government to be rescued. Probably not be the branding Citi intended for when it signed the deal.

Here is what CFO Gary Crittendon had to say about it Monday on CNBC:

“That was a decision made in a different time. We have binding legal agreements… I don’t think it’s an issue.”

So let’s follow the money here: The government gives funds to Citigroup, who is now better able to make an annual payment to the Mets. Sounds a bit like a new taxpayer subsidy for the Mets, who are already receiving government subsidies for building their stadium.

Source: Reuters

Dodgers Give Name To New Spring Site; White Sox Will Share Facility

The Dodgers and White Sox announced Thursday that their new joint venture Spring Training facility in Glendale, Ariz., will be called "Camelback Ranch."

The 141-acre site is located on Camelback Road just west of the Loop 101. The $80 million baseball facility includes more than 118,000 square feet of Major and Minor League clubhouse space, 13 full baseball fields and three half-fields. The site will feature walking trails, landscaped grounds and an orange grove. There will also be two ponds and a fully stocked lake between the Dodgers and White Sox facilities.

The shared stadium, which will be the focal point of the complex, is the largest in the Cactus League with a capacity of 13,000, which includes 3,000 lawn seats, 12 luxury suites, a party deck and a center-field rotunda entrance.

The Dodgers and White Sox announced plans to move to the Glendale site two years ago, but the White Sox received final clearance only earlier this week when they bought out the remaining three seasons of a contract to train in Tucson, Ariz., for $5 million. The White Sox had been sharing a complex with the Arizona Diamondbacks since 1998 after relocating from Sarasota, Fla.

In addition to serving as the Spring Training home of the White Sox and Dodgers, the campus will become the home for all Dodger Minor League operations throughout the year, including the team's Arizona League entry and Fall Instructional League team. The White Sox also will use Camelback Ranch in Glendale as the home for their Fall Instructional League.

The teams are currently looking for naming rights in the region of $1 million per season for the facility.

Source: MLB

MLB: Economy Makes Free Agent Signings More Risky

Associated Press

Major League Baseball's free-agent market opened for business at 12:01 a.m. EST Friday morning and the Yankees, who missed the playoffs for the first time since 1993, are expected to dominate proceedings.

"We're going to do what we do every year, and that's try to field a championship team," co-chairman Hal Steinbrenner told reporters on Tuesday. "That's not going to change. We know that we've got some weaknesses, and we're going to fix the problems as best we can. If that means spending money, obviously that means spending money. The philosophy has not changed."

Yankees GM Brian Cashman got things started Thursday by signing reliever Damaso Marte to a three-year, US$12-million contract and trading for Chicago White Sox first baseman/outfielder Nick Swisher.

That will likely not be the end of the moves for baseball's richest team.

New York is moving into a new Yankee Stadium that will generate tens of millions of dollars more than the team's former home, although a slowing economy has impacted luxury suite sales for this season. Seven were still available this week.

But with single-game ticket prices as high as US$2,500, the team will not be hurting for cash.

A.J. Burnett must be hopelessly underpaid because he didn't think twice about telling the Toronto Blue Jays that his current contract guaranteeing him $12 million a year just wasn't going to cut it anymore.

Hard to blame him, because fellow pitcher CC Sabathia figures to make double that by the time he reports to spring training a few months from now. Besides, there's always the nagging worry that a new administration taking office soon just might be coming after some of his fortune.

Some team, perhaps even the Blue Jays, will pay Burnett what he wants. They will because this is baseball and, as super agent Scott Boras points out, the economic rules that govern normal civilized society don't apply.

"In our myopic world," Boras said, "there's a lot of fixed elements that frankly are not as applicable to the outside world."

They may listen and nod approvingly when Bud Selig says times are tough and that teams should watch what they do with their money, as he did in a video call to general managers meeting this week in Dana Point, Calif. But toss a top starting pitcher in front of them, and even the mid-market teams start salivating and begging their bankers for a loan.

Report: Cuban has 'zero chance' of buying Cubs

From the Chicago Sun-Times

Cubs owner Sam Zell would love to sell the team to Mark Cuban.

Plenty of Cubs fans would love to have him own the team.

But that's not going to happen, according to the Chicago Sun-Times.

"There's no way Bud and the owners are going to let that happen. Zero chance," a Major League Baseball source told the paper this week.

The Cubs originally went on sale on Opening Day of the 2007 season, but there has been little movement toward a resolution.

The recent global financial crisis has only stalled it even more as the value of the team and ballpark has dropped from a high of $1 billion.

The source doesn't see a resolution any time soon, telling the paper, "We'll be standing here at next year's GM meetings and this will still be unresolved."

The paper says a group headed by John Canning Jr. is the likely front-runner.