Do you think the folks in the Nation's Capital want a baseball team? The Washington Post has several pages on their online site about D.C. Baseball.
Speaking of the Washington Post, ESPN is reporting that the San Francisco Chronicle is reporting that part-owner Steve Schott is refuting sale rumors that the Washington Post is reporting a possible deal for the A's. Are you getting the idea that there isn't a lot of first hand information going on out there?
Report: A's deny sale rumor
In the Aug. 7 San Francisco Chronicle, team co-owner Steve Schott refuted a Washington Post report that indicated the Athletics were on the market and that they might be sold to an interested Washington, D.C. buyer. According to the Chronicle, the Post saw documents indicating that an agreement had been reached to sell the team to Jonathan Ledecky for $170 million, but the deal fell through because Ledecky failed to meet a July deadline for a payment. Schott said that he might look for a new partner -- current colleague Ken Hoffmann is 80 -- but the team will not be sold to someone interested in moving the franchise.
I'll explain this, again. In the business world, there are times when you inquire about acquisitions. Mergers and Acquisitions is what the business of business is all about. At some point, a business is going to be asked what it would take to acquire said business.
The A's have been asked so frequently because they have a sound business model entering a transitional phase. New ballpark or no, the A's are going to be getting revenue from the City or the ballpark the City of Oakland builds. Which means, for a nominal investment, an owner could make back his investment in less than 10 years.
The A's sold for about $120 million in the early 1990's. The recent appraisal has the A's at about $150-$170 million. If a new owner can maximize profit with a new stadium even with number the listless Milwaukee Brewers got in their first year in Miller Park, you're looking at an average of $15 million in profit with a minuscule payroll. Add a few post season games and an All-Star game and you're looking at a cash cow and a great place to hide numbers (money).
Say what you will about owners, but the people they hire that hire their accountants are not stupid. They know all the tax loopholes, slight of hand and hidden mirror tricks to make it look like they are losing money while they are tipping wine stewards $100 for a $30 bottle of wine in expensive restaurants as they deduct the bill as a business expense. Then, they get someone else to sign off on it.
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