Drayton on the verge of selling the Astros?

[Navin R Johnson]

http://abclocal.go.com/ktrk/story?section=news/sports/pro/baseball&id=7212633

[Ron Brand]

For someone who isn't actively trying to sell the team, he certainly does have a lot of suitors calling on him. $700 million? Yow.

[BUWebguy]

McTag confirms via Twitter (sorry no link - on my phone).

[Craig]

Maybe this is why Wade was able to sign Myers; Drayton knew he wouldn't be signing the wife-dragger's paychecks.

[Fredia]

interesting and scary times ahead. i have seen major league and know where some ball players come from

[toddthebod]

Too bad it's not Mark Cuban.  I hope the new owners don't view this team purely as a business as I believe Drayton does.

[hostros7]

Too bad it's not Mark Cuban.  I hope the new owners don't view this team purely as a business as I believe Drayton does.

Or they do view it as a business... one of those one's where you invest a lot of money to make more money and not one of the ones where you don't spend shit and profit share like the Pirates.

[HudsonHawk]

Or they do view it as a business... one of those one's where you invest a lot of money to make more money and not one of the ones where you don't spend shit and profit share like the Pirates.

No shit. Drayton treating the team like a real business, in which he has a real interest for success, has been a godsend.

[Alkie]

chuck and I are spearheading an investment group to purchase the Astros.   Shares are $1 a piece and we only need 700 million people to invest.

I want to be very clear that we're only using this as a tax shelter and intend to hire a crazy unmarriable woman as the head of business development who will make odd business decisions until we can finally move the team to Vegas; a city I refuse to visit myself.

Who's in?

[HudsonHawk]

chuck and I are spearheading an investment group to purchase the Astros.   Shares are $1 a piece and we only need 700 million people to invest.

I want to be very clear that we're only using this as a tax shelter and intend to hire a crazy unmarriable woman as the head of business development who will make odd business decisions until we can finally move the team to Vegas; a city I refuse to visit myself.

Who's in?

So if I invest two dollars, does that make me managing partner?

[BUWebguy]

Drayton McLane says he entered into exclusive negotiating window with investment banker who wants to buy Astros ... McLane says he's not trying to sell the team and the situation isn't an indicator he's about to sell team

From McTag Twitter:
http://twitter.com/brianmctaggart/status/7649774927
http://twitter.com/brianmctaggart/status/7649801669

[Alkie]

So if I invest two dollars, does that make me managing partner?

I'm not seeing how, since I put up $6 and chuck threw in $3.20.

[Andyzipp]

I'm not seeing how, since I put up $6 and chuck threw in $3.20.

I'll put in 20 for Diamond Club seats and the job of firing Milo.

[Lefty]

Shares are $1 a piece and we only need 700 million people to invest.

Find a chinese kid, train him into the ground, sign him, start him, you'll get your investors.

[Noe]

I was saving these last two dollars for a cheeseburger next Tuesday.  I'm in!

[Noe]

You know, it doesn't really surprise me that much to hear that McLane is trying to sell now and get out from being the owner of the team.  Several rumors are that his kids have expressed absolutely no interest in being the McLane version of Steinbrenner clan running a major league baseball club.  That may be part of it, probably a lion share of it.  I also think that the owner doesn't know how to wait for prospects to gel and for youngsters to get a chance to play.  He doesn't understand how this will sell, it smacks of not wanting to compete, to entertain fans.

It smacks of bad business. 

To me, he's getting out because the run he had with Biggio/Bagwell and then Berkman/Oswalt is soon coming to an end and the chance to replicate or even match that era of Houston Astros baseball will require doing the right thing and letting the club develop those players.  This owner does not know rebuild, he knows reload and if he's going to own this team, he's going to give them a couple of years to prove to him that this whole idea of grooming the right kids in the minors is going to work.  But seems to me he's not really ready to allow himself to own a struggling young ballclub similar to the '91 Astros.

He rather sell and let someone else go through that.  IMHO of course.

[VoR]

You know, it doesn't really surprise me that much to hear that McLane is trying to sell now and get out from being the owner of the team.  Several rumors are that his kids have expressed absolutely no interest in being the McLane version of Steinbrenner clan running a major league baseball club.  That may be part of it, probably a lion share of it.  I also think that the owner doesn't know how to wait for prospects to gel and for youngsters to get a chance to play.  He doesn't understand how this will sell, it smacks of not wanting to compete, to entertain fans.

It smacks of bad business. 

To me, he's getting out because the run he had with Biggio/Bagwell and then Berkman/Oswalt is soon coming to an end and the chance to replicate or even match that era of Houston Astros baseball will require doing the right thing and letting the club develop those players.  This owner does not know rebuild, he knows reload and if he's going to own this team, he's going to give them a couple of years to prove to him that this whole idea of grooming the right kids in the minors is going to work.  But seems to me he's not really ready to allow himself to own a struggling young ballclub similar to the '91 Astros.

He rather sell and let someone else go through that.  IMHO of course.

I think he's getting out because he has found Houston to be full of spoiled ingrates.

2nd in NL over his tenure. 5th in MLB. Only WS appearance. Someone should run this A Hole out of town!!!

[chuck]

I'm not seeing how, since I put up $6 and chuck threw in $3.20.

That was $3.20 Canadian but the deal was I get extra shares because I am actually willing to go to Las Vegas. Alkie gives interviews to the press - trade journals and so forth - and I gladhand with Oscar. Everybody wins.

[Houston]

chuck and I are spearheading an investment group to purchase the Astros.   Shares are $1 a piece and we only need 700 million people to invest.

I want to be very clear that we're only using this as a tax shelter and intend to hire a crazy unmarriable woman as the head of business development who will make odd business decisions until we can finally move the team to Vegas; a city I refuse to visit myself.

Who's in?

If I head an investment group to help me raise $50, would I get the title of sub-managing partner? If so, I'm in.

[Guinness]

chuck and I are spearheading an investment group to purchase the Astros.   Shares are $1 a piece and we only need 700 million people to invest.

I want to be very clear that we're only using this as a tax shelter and intend to hire a crazy unmarriable woman as the head of business development who will make odd business decisions until we can finally move the team to Vegas; a city I refuse to visit myself.

Who's in?

I have a £10 note, some Irish coins, a few French and Belgian francs, and some deutschmarks laying around, plus some US coinage in my desk.  Can I be a foreign investor even if I'm in Katy?  What will this do to my tax situation?

[Limey]

That was $3.20 Canadian ...

YOu should check the exchange rates currently.  That's about $3.10 US.

[ferret]

I think he's getting out because he has found Houston to be full of spoiled ingrates.

2nd in NL over his tenure. 5th in MLB. Only WS appearance. Someone should run this A Hole out of town!!!

You neglected to include stupid.  Houston is full of very, very stupid people.

[MusicMan]

If I head an investment group to help me raise $50, would I get the title of sub-managing partner? If so, I'm in.

I had no idea that winning my fantasy baseball and football leaues this year would get me the plurality of shares of the Houston Astros.

[ferret]

McLane told Allen if this group could not come up with the money then he would be fine owning the team for several more years.

"have to show us that they have the financial capability to do the deal and they have to show us the people, because we'd only do something if it were really, highly reputable people and that there were a lot of Houston people that were involved in it."
http://abclocal.go.com/ktrk/story?section=news/sports/pro/baseball&id=7212633

(Chronicle says the bidders include) former United States Olympic Committee chief Harvey Schiller and an unidentified New York investment banker.

(Harvey W. Schiller, Ph.D. has been our Chairman of the Board and Chief Executive Officer since June 2005. Dr. Schiller had been Chairman of the Board of privately-held GlobalOptions, Inc. since February 2004. Dr. Schiller oversees our administrative headquarters with a focus on our strategy and new business development. Prior to joining GlobalOptions, Dr. Schiller served as Chairman of Assante U.S., a provider of financial and life management products and services, from 2002 to 2004. Prior to joining Assante, he was Chairman and Chief Executive Officer of YankeeNets from 1999 to 2002. His previous experience includes President of Turner Sports, Inc., Executive Director and Secretary General of the United States Olympic Committee and Commissioner of the Southeastern Conference. Prior to joining the United States Olympic Committee, Dr. Schiller served for more than 25 years in the United States Air Force, achieving the rank of Brigadier General. Dr. Schiller is a former partner in QuanStar Group, a management consulting firm in New York, and a former advisory partner of Millennium Technology Value Partners, L.P.) http://people.forbes.com/profile/harvey-w-schiller/37400

“As I've told you before, owning a baseball team involves a sacred trust with a city.”

“We haven't put the team up for sale,” McLane said. “We're not soliciting buyers. We're doing this for estate-planning purposes. But we've owned the Astros for 18 years and would be happy to plug along another 18 years.

“I don't think in a difficult economy there's going to be a sale. How many franchises have been sold recently? I doubt seriously if anything is going to occur.”
http://www.chron.com/disp/story.mpl/sports/bb/6810271.html

You mean in the past week? In 2009, Cubs, Padres, Rangers ....

Stop hitting yourself, stop hitting yourself, stop hitting yourself.... (Pinwheel)

12/21/2009
I believe the Astros will get a new owner within the next year, ....
http://blogs.chron.com/sportsjustice/archives/2009/12/anyone_assuming.html

1/12/2010
Don't be surprised if Drayton still owns the Astros a year from now.
... (Mclane) ...truly doesn't want to sell. Until he actually signs on the dotted line, I'll won't believe it.
http://blogs.chron.com/sportsjustice/archives/2010/01/

[Ron Brand]

Didn't McLane characterize this group as people who raise money as a profession? That seems to contradict what I've always taken as a prerequisite for ownership, that being that an owner should expect to own the team for a longer period of time than I might expect an investment consortium to do.

[ferret]

Didn't McLane characterize this group as people who raise money as a profession? That seems to contradict what I've always taken as a prerequisite for ownership, that being that an owner should expect to own the team for a longer period of time than I might expect an investment consortium to do.

When "Sacred trust" = "estate planning", why quibble?

[MusicMan]

When "Sacred trust" = "estate planning", why quibble?

This is a year when people are writing estate planning provisions into their Do Not Resuscitate orders.  It's a world gone mad.

[Houston]

This is a year when people are writing estate planning provisions into their Do Not Resuscitate orders.  It's a world gone mad.

What, they don't want their dying portfolios to be revived?

[Alkie]

Can I be a foreign investor even if I'm in Katy? 

I like that you asked as if Katy DIDN'T make you a ferner.

[Guinness]

I like that you asked as if Katy DIDN'T make you a ferner.

I have the same attitude about that as I did when living overseas:  I'm not the ferner, everyone else is.

[Limey]

You neglected to include stupid.  Houston is full of very, very stupid people.

You need to get out more.  The World is full of very stupid people.  Just because Idiocracy was a terrible movie, doesn't make it wrong.

[ferret]

You need to get out more.  The World is full of very stupid people.  Just because Idiocracy was a terrible movie, doesn't make it wrong.

The topic at hand was Houston.  It is a source of wonder to me how most people scrape up the  necessary brain function to sustain breathing. 

[ferret]

Michael Ozanian at Forbes, who has pulled numbers out his nether regions before, believes Drayton wont get more than $525 million for the Astros and is using the Schiller interest (?) as a stalking horse. 
http://blogs.forbes.com/sportsmoney/2010/01/houston-astros-will-not-fetch-650-million/

In total, after Harris County bought the Dome from him, Mclane paid something less than $100 million for the Astros in 1992.  If he had merely bought WalMart stock with that money, he would have made about $387 million, not including dividends paid. 

[BUWebguy]

Michael Ozanian at Forbes, who has pulled numbers out his nether regions before, believes Drayton wont get more than $525 million for the Astros and is using the Schiller interest (?) as a stalking horse. 
http://blogs.forbes.com/sportsmoney/2010/01/houston-astros-will-not-fetch-650-million/

In total, after Harris County bought the Dome from him, Mclane paid something less than $100 million for the Astros in 1992.  If he had merely bought WalMart stock with that money, he would have made about $387 million, not including dividends paid. 

Wait - Harris County bought the Dome from Drayton? I thought the county always owned the Dome and just leased it to the Astros for something stupid like $1 a year.

[ferret]

Wait - Harris County bought the Dome from Drayton? I thought the county always owned the Dome and just leased it to the Astros for something stupid like $1 a year.

It's probably more complicated than that, but here's one article http://www.houstonpress.com/1997-02-06/news/the-insider/

[VoR]

You neglected to include stupid.  Houston is full of very, very stupid people.

I'm with you, buddy. It's memories of Scott, Hatcher, Doran, Bass, Bagwell, Biggio, Spiers, and Oswalt still on the team that even keep me an Astros fan. That and a strange sense of honor towards loyalty. I just might drop MLB totally, or make the Astros my #2 behind Seattle. Oswalt is really the only guy I like anymore. I don't even like Berkman. I think Pence is the most overrated outfielder in baseball. Wandy I like but I'm not in love with.

[sporadic]

Wandy I like but I'm not in love with.

Wandy must not be "wounded" enough.  Good thing, too...first time y'all are out and he drinks a bit too much he might wind up on the DL.

[JimR]

I'm with you, buddy. It's memories of Scott, Hatcher, Doran, Bass, Bagwell, Biggio, Spiers, and Oswalt still on the team that even keep me an Astros fan. That and a strange sense of honor towards loyalty. I just might drop MLB totally, or make the Astros my #2 behind Seattle. Oswalt is really the only guy I like anymore. I don't even like Berkman. I think Pence is the most overrated outfielder in baseball. Wandy I like but I'm not in love with.

who gives a shit?

admins, please nuke this asshole.

[Limey]

Wandy must not be "wounded" enough.  Good thing, too...first time y'all are out and he drinks a bit too much he might wind up on the DL.

I think you're missing the point:  VoR doesn't hit anyone who has a penis.

[Guinness]

I think you're missing the point:  VoR doesn't hit anyone who has a penis.

Might depend on which definition of "hit" you have in mind.

[Col. Sphinx Drummond]

I think you're missing the point:  VoR doesn't hit anyone who has a penis.

You mean when he said he had been in Tyler and Tyler sucked, he wasn't talking about Tyler Perry? NTTIAWWI.

[Gizzmonic]

XM is reporting that Drayton signed some kind of document that states he is selling the Astros, he says he will only sell to a mostly-Houston-based team.  I'd be less vague but I had a little too much NyQuil last night. 

[Bench]

XM is reporting that Drayton signed some kind of document that states he is selling the Astros, he says he will only sell to a mostly-Houston-based team.  I'd be less vague but I had a little too much NyQuil last night. 

I heard that he had signed a letter of intent to enter into negotiations with the would-be purchasers.  That's normal, but it's not a sale.

[ferret]

McLane acknowledged he had granted a 30-day exclusive negotiating window to sell the team to a New York investment banking company,
http://houston.astros.mlb.com/news/article.jsp?ymd=20100112&content_id=7907974&vkey=news_hou&fext=.jsp&c_id=hou

"have to show us that they have the financial capability to do the deal and they have to show us the people, because we'd only do something if it were really, highly reputable people and that there were a lot of Houston people that were involved in it." http://www.spikesnstars.com/forums/index.php?topic=110100.msg309187#msg309187

[Gizzmonic]

Ah, thanks for cleaning up my mess.  I won't try to play drug-addled reporter again.

[ferret]

Ah, thanks for cleaning up my mess.  I won't try to play drug-addled reporter again.

You're welcome.  It occurs to me, why would the investment company request an exclusive time frame, and why would Mclane tell us about it?

[BUWebguy]

You're welcome.  It occurs to me, why would the investment company request an exclusive time frame, and why would Mclane tell us about it?

I assumed the exclusive time frame was usual for this sort of thing -- like accepting an offer to buy your house, given that A, B and C are all done in a certain amount of time.

I also assumed that someone (Channel 13?) dug up the story, and McLane decided to admit to it this time rather than pretend it wasn't happening.

Of course, we all know what assuming does...

[ferret]

I assumed the exclusive time frame was usual for this sort of thing -- like accepting an offer to buy your house, given that A, B and C are all done in a certain amount of time.

I also assumed that someone (Channel 13?) dug up the story, and McLane decided to admit to it this time rather than pretend it wasn't happening.

Of course, we all know what assuming does...

But the exclusivity is only relevant when you think there might be other buyers.  And, Bob Allen?  Bob Allen dug up a story?  I think someone may have led him to a story.

[Bench]

But the exclusivity is only relevant when you think there might be other buyers. 

I just don't think it's that big of a deal.  It's standard to keep the negotiations between two parties.  It takes very little effort to create an exclusive negotiating window; there's really no reason not to.   

[ferret]

I just don't think it's that big of a deal.  It's standard to keep the negotiations between two parties.  It takes very little effort to create an exclusive negotiating window; there's really no reason not to.   

Right, I'm not as suspicious of that as I am of Bob Allen digging up a story. 

[Andyzipp]

Right, I'm not as suspicious of that as I am of Bob Allen digging up a story. 

Would it be Drayton, though?  Doesn't make any sense for it to be the other side.

[MusicMan]

Would it be Drayton, though?  Doesn't make any sense for it to be the other side.

Generating bidders.  "Oh, did I happen to casually mention the exclusive negotiating window I have with this group of investors who I'm saying won't come up with the money?  I'm not interested in selling, I'm just listening to offers.  Please, don't throw me in that briar patch by reporting this, Bob Allen."

[S.P. Rodriguez]

Yes, well, that is the obvious conclusion.  Even the Forbes article estimating Astros value at 525mil implies that McLane is fishing for bidders.  I dismissed it until it occurred to me that maybe McLane has grown tired of the bile directed his way over his ownership tenure.

I finally read JdJO's last blog, with the knowledge it would do him no good, to see the comments (Blog title: Would you miss Drayton?)

Needless to say, the mouthbreathing, knuckle draggers were out in force.  Don't take this wrong, I generally don't try to assess the quality of one's internet postings unless in the most blatant cases.  I don't think I saw a single reasonable response.  I'd provide a sample but will spare everyone the time and disappointment.  Just imagine the most unimaginative and common gripe that you'd hear at a sports bar.  Repeat 30 times.

I think McLane is ready to get out of the baseball business.  Personally, I'm sorry to see him go.  He's been a great owner.  He's made mistakes, but if not making mistakes is the criteria of ownership, well he was f'd to begin with.

[GreatBagwellsBeard]

I think McLane is ready to get out of the baseball business. 

Correction: The McLanes are ready to get out of the baseball business.  Drayton's statements about "estate planning" would seem to confirm the rumors that his kids don't want to own the team.  Given the choice between a share of $600+ MM and getting nit-picked by a town full of fans who want you to spend like the Yankees, I can see their logic.

[ferret]

Yes, well, that is the obvious conclusion.  Even the Forbes article estimating Astros value at 525mil implies that McLane is fishing for bidders.  I dismissed it until it occurred to me that maybe McLane has grown tired of the bile directed his way over his ownership tenure.

...

That's when it occured to me too.  Something about Bob Allen breaking a story like this didn't sit right, then when I read the Forbes guy, I thought, of course.  He's led a trail of bread crumbs for a TV reporter.  I don't know about his motivations though.  He could be trying to attract buyers, but is he that concerned with his "sacred trust"?  Maybe it makes him feel better.  There has to be better and more discreet ways of putting out a for sale sign.  I do know that teams are being sold, Cubs, Padres, and Rangers have been sold or are in the process.   Also, there are no estate taxes this year.  Legislative screwups (?) left a gap between the expiring of the old law and the new law which takes over in 2011.  I could be wrong, our tax department might have better insight on why this might be a good year to fix an estate transfer.

[MusicMan]

Legislative screwups (?) left a gap between the expiring of the old law and the new law which takes over in 2011.  I could be wrong, our tax department might have better insight on why this might be a good year to fix an estate transfer.

Not a legislative screw up so much as legislative trickery.  The Repoblican Senate in 2005 voted to sunset the estate tax, scaling it down until it disappeared in 2010.  However, they did not have the supermajority necessary to make this a permanent fix, so they had the tax "reinstate" in 2011, figuring that either (a) they would still be in power and vote to extend the repeal, or (b) "reinstatement" of a tax would be such bad politics that the Dems wouldn't touch it.

Regardless, there's something truly macabre about a law written such that people are seeking euthenasia to save on estate taxes.

[ferret]

Not a legislative screw up so much as legislative trickery.  The Repoblican Senate in 2005 voted to sunset the estate tax, scaling it down until it disappeared in 2010.  However, they did not have the supermajority necessary to make this a permanent fix, so they had the tax "reinstate" in 2011, figuring that either (a) they would still be in power and vote to extend the repeal, or (b) "reinstatement" of a tax would be such bad politics that the Dems wouldn't touch it.

Regardless, there's something truly macabre about a law written such that people are seeking euthenasia to save on estate taxes.

Politics aside, is it necessary to die in order to take advantage of this "oversight"?

[Bench]

Politics aside, is it necessary to die in order to take advantage of this "oversight"?

Live forever, and you never have to worry about the tax.  That's what the fat cats should be focusing on.

[Noe]

That's when it occured to me too.  Something about Bob Allen breaking a story like this didn't sit right, then when I read the Forbes guy, I thought, of course.  He's led a trail of bread crumbs for a TV reporter.  I don't know about his motivations though.  He could be trying to attract buyers, but is he that concerned with his "sacred trust"?  Maybe it makes him feel better.  There has to be better and more discreet ways of putting out a for sale sign.  I do know that teams are being sold, Cubs, Padres, and Rangers have been sold or are in the process.   Also, there are no estate taxes this year.  Legislative screwups (?) left a gap between the expiring of the old law and the new law which takes over in 2011.  I could be wrong, our tax department might have better insight on why this might be a good year to fix an estate transfer.

We were actually warned at work about estate taxes changing after this year.  The person presenting the information to us woefully unprivileged to worry about large amounts of money being gobbled up by the gubmint was very animated.  In short, he made it sound as if that if you have a large estate to leave your children, they may be planning to kill you this year to avoid this taxation.

[MusicMan]

Politics aside, is it necessary to die in order to take advantage of this "oversight"?

Yes.  Gift tax remains in place.

[Noe]

Correction: The McLanes are ready to get out of the baseball business.  Drayton's statements about "estate planning" would seem to confirm the rumors that his kids don't want to own the team.  Given the choice between a share of $600+ MM and getting nit-picked by a town full of fans who want you to spend like the Yankees, I can see their logic.

I happen to subscribe to this notion as well.  

[matadorph]

Yes, well, that is the obvious conclusion.  Even the Forbes article estimating Astros value at 525mil implies that McLane is fishing for bidders.  I dismissed it until it occurred to me that maybe McLane has grown tired of the bile directed his way over his ownership tenure.

I finally read JdJO's last blog, with the knowledge it would do him no good, to see the comments (Blog title: Would you miss Drayton?)

Needless to say, the mouthbreathing, knuckle draggers were out in force.  Don't take this wrong, I generally don't try to assess the quality of one's internet postings unless in the most blatant cases.  I don't think I saw a single reasonable response.  I'd provide a sample but will spare everyone the time and disappointment.  Just imagine the most unimaginative and common gripe that you'd hear at a sports bar.  Repeat 30 times.

I think McLane is ready to get out of the baseball business.  Personally, I'm sorry to see him go.  He's been a great owner.  He's made mistakes, but if not making mistakes is the criteria of ownership, well he was f'd to begin with.

This x 1,000,000. The fuckwits posting on chron.com must be too young to remember the previous ownership.

I cannot believe the idiotic things Astros fans routinely say about Drayton McLane. He ain't perfect, of course, but he's been a very good owner on the whole and one whom I will miss. The man is very, very rich so I can't feel too sorry for him, but his wealth can't inure him from the litany of shit spewed his way by childish retards who will complain no matter what. That has to get tiresome so I can understand why he'd want out from underneath it all.

I worry about the motivations and loyalty to Houston of the future owner(s). Sure, Drayton is a bidnessman who values the bottom line, but he also has demonstrated a desire to win and built a solid franchise along the way.

[OregonStrosFan]

In short, he made it sound as if that if you have a large estate to leave your children, they may be planning to kill you this year to avoid this taxation.

Note to Jim: keep a VERY CLOSE eye on Mark this year.  Just saying...

[ferret]

Yes.  Gift tax remains in place.

Thanks, I think the gift tax is 35% now and will rise to 55% in 2011 (?)

[Lurch]

Nothing new, but Footer twote:

Drayton addressing "selling the team" question to Lions Club. "I take every phone call. A group of investors from NY who I did not know...
"...called me and asked if they raised a lot of money, would I consider selling the team to them." I said "you better raise A LOT."...
...reiterates he's not actively interested in selling. Says his family would be against it. Adds that the media reports are "way overblown."
I'm just reporting what DM said. Not my words.