Rumors for December, 2010
Blue Jays and Octavio Dotel close to 1 year deal
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According to Enrique Rojas of ESPNDeportes, the Toronto Blue Jays and relief pitcher Octavio Dotel are close to a one-year, $3-4 million deal. Jon Heyman of Sports Illustrated adds that the $3.5 million deal is not close yet.
In addition to the Blue Jays, the Pirates and the Rays had interest in the right-handed reliever, but according to Rojas, the Jays will give Dotel the best opportunity to close games.
Dotel, 37, declined arbitration from the Colorado Rockies at the end of November. Because he’s a Type-B free agent the Rockies will receive a supplemental draft pick in the 2011 draft should he go anywhere other than Colorado.
Dotel was acquired from the Pittsburgh Pirates by the Los Angeles Dodgers at trade-deadline for James McDonald and Andrew Lambo. The Dodgers then traded Dotel to the Rockies in mid-September for a player to be name later. Dodger’s GM Ned Colletti acquired Dotel in hopes of strengthening the Dodgers weak bullpen as they made a push for the playoffs.
The right-hander made $3.25 million in 2010.
Webb choosing between Rangers and Reds?
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According to two sources close to Jayson Stark of ESPN.com, the Chicago Cubs and Washington Nationals are no longer in the running for pitcher Brandon Webb. Webb is now choosing between the Texas Rangers and a mystery team from the National League Central. Sources close to FOXSports’ Ken Rosenthal say the Reds are the principal challengers to the Rangers.
Jerry Crasnick of ESPN was the first to report an interest by the mystery team last week.
One source says that Webb is “closing in” on the decision, and he’s considering offers from both remaining teams.
Webb is seeking a one-year deal with a significant guarantee plus incentives. He’d like to build value in 2011 with the hopes of securing a multi-year deal after the season.
The identified NL Central has not been confirmed. The Milwaukee Brewers are the only team to have denied any interest in the right-hander. Stark speculates that the St. Louis Cardinals or the Pittsburgh Pirates as the only logical candidates for Webb’s services.
Hisashi Iwakuma re-signs with Rakuten Golden Eagles
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In a Tweet by Jason Coskrey of the Japan Times, he says that Hisashi Iwakuma has re-signed with Rakuten for 300 million Yen (approximately $3.6198 USD) with a possibility for performance incentives.
On November 8, the Oakland Athletics won the exclusive rights to negotiate with Iwakuma by bidding approximately $19.1 million in a posting fee. However the sides could not come to an agreement regarding a contract. Despite the unfortunate fall out of the negotiations, the A’s have made it clear to Iwakuma, according to the San Francisco Chronicle’s Susan Slusser, that they will have interest in him next year when he’s a free agent.
Iwakuma posted a 2.82 ERA over 201 innings this past season. That accomplishment marked Iwakuma’s fourth straight season with an ERA of 3.40 or lower.
How the NL East owners made their money
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Atlanta Braves
Owner: Liberty Media Corporation and John Malone
Net Worth (Malone): $2.2 billion as of 2005
Source of wealth: Various executive positions
2010 Forbes Franchise Valuation: $450 million
Malone graduated with a Masters degree from Johns Hopkins University in 1964. He held various positions with AT&T, McKinsey & Company, General Instrument Corporation, Jerrold Electronics and Tele-Communications Inc as well as several Board of Director positions. He is currently the Chairman of the Liberty Media Corporation.
The Liberty Media Group purchased the Braves in 2007 from Time Warner (who inherited the Braves after purchasing TBS from Ted Turner). The deal included the exchange of the Braves, valued in the deal at $450 million, a hobbyist magazine publishing company, and $980 million cash, for 68.5 million shares of Time Warner stock held by Liberty Media, then worth approximately $1.48 billion
Florida Marlins
Owner: Jeffrey Loria
Net Worth: Less than $400 million (as of 2002)
Source of wealth: Art
2010 Forbes Franchise Valuation: $317 million
After graduating from Yale University, Loria opened a private art dealing business Jeffrey H. Loria & Co. at the age of 24. His collection included works by Pablo Picasso and Henry Moore. He later attended Columbia Business School and published various books.
In 1999, Loria purchased 24% of the Montreal Expos for $12 million USD. He later acquired 94 percent of the team. Other owners included the city of Montreal and Stephan Bronfman.
In 2002, Loria sold the Expos to Major League Baseball to the 29 other clubs for $120 million. Loria then purchased the Marlins from then owner John W. Henry for $158.5 million. Henry went on to purchase the Boston Red Sox.
New York Mets
Owner: Fred Wilpon
Net Worth: unconfirmed $500 million (he lost a reported $700 million in the Bernie Madoff ponzi scheme fraud)
Source of wealth: Investments (Sterling Equities)
2010 Forbes Franchise Valuation: $858 million
Wilpon founded Sterling Equities in 1972 with Saul Katz with an interest in real estate. Sterling Equities went on to purchase and develop commercial properties, residential units and retail properties. They also provided venture capital funding to medical, bio-energy and other businesses.
Wilpon bought a 1% stake in the Mets in 1980 with Doubleday & Co. holding the remaining portion of the club. In 1986, Nelson Doubleday Jr. sold off his company and he and Wilpon became 50% partners in the Mets. In 2002, the Wilpon family purchased Doubleday’s 50% share in for $391 million.
Philadelphia Phillies
Owner: David Montgomery
Net Worth: unknown
Source of wealth: Worked his way up through the Phillies organization
2010 Forbes Franchise Valuation: $537 million
Montgomery attended the University of Pennsylvania for a double-major in liberal arts and history. He later attended the Wharton Business School and graduated in 1970.
He began his career in the Phillies’ sales department in 1971, after reaching out to then Phillies’ ace Robin Roberts. He worked his way up through the company to director of sales and marketing, to the head of the business department.
In 1981, he purchased the team with co-owner Bill Giles for $30 million. Coincidentally, Giles started with the Phillies in 1969 and worked his way through various executive positions within the club.
Washington Nationals
Owner: Ted Lerner
Net Worth: $3 billion
Source of wealth: Real estate
2010 Forbes Franchise Valuation: $387 million
After serving the United States Army and attending The George Washington University and the The George Washington University Law School, he founded Lerner Enterprises in 1952. The company went on to develop ventures such as Chelsea Piers, several commercial developments, shopping centers and thousands of homes and apartment buildings.
In 2006, Lerner was awarded the Washington Nationals franchise (owned by Major League Baseball at the time). He bought the team for $450 million.
How the AL Central owners made their money
Posted by: | CommentsChicago White Sox
Owner: Jerry Reinsdorf
Net worth: unknown
Source of wealth: Real Estate
2010 Forbes Franchise Valuation: $466 million
Reinsdorf started his professional life as a tax attorney with the IRS. He made his initial fortune in real estate, taking advantage of the Frank Lyon Co. v. United States decision by the United States Supreme Court.
In 1981 he was wealthy enough to purchase the White Sox for $19 million. The purchase was brokered by American National Bank who arranged for a limited partnership. Soon after buying the White Sox, he signed Greg Luzinski and Carlton Fisk. He also tripled the team promotional budget and increased the number of team scouts from 12 to 20.
The team initially signed a television deal with the newly founded Sportsvision under the new leadership of Chairman Reinsdorf and Vice Chairman Eddie Einhorn, but that arrangement quickly fizzled.
Cleveland Indians
Owner: Lawrence Dolan
Net worth: unknown
Source of wealth: Attorney
2010 Forbes Franchise Valuation: $391 million
Dolan got his law degree from University of Notre Dame in 1956. Upon leaving Notre Dame, Larry served in the United States Marine Corps for two years. After leaving the Marine Corps in 1958, Larry worked as an assistant prosecutor in Geauga County, Ohio before going into a private practice. He eventually became president and managing partner of Thrasher, Dinsmore, & Dolan in Chardon, Ohio.
In 2000, Larry Dolan bought the Cleveland Indians for $323 million from Richard Jacobs, who, along with his late brother David Jacobs, had paid $35 million for the club in 1986. Jacobs had taken the Indians public in 1997. As part of the deal, Dolan bought all of the stock at just over twelve dollars a share, making the franchise privately held once again.
In 2006 he started SportsTime Ohio to air Indians games. In 2009 he was named the #7 worst owner in all sports by the Bleacher Report.
Detroit Tigers
Owner: Michael Ilitch
Net worth: $1.5 billion
Source of wealth: Investments – Little Ceasar Pizza Franchises
2010 Forbes Franchise Valuation: $375 million
A graduate of Cooley High School, Mike Ilitch served in the U.S. Marine Corps for 4 years. After his return home to Detroit, the Detroit Tigers offered him $5,000 if he would sign to play baseball. Ilitch had a three year minor league career before he was forced out of his playing career due to a knee injury. After leaving baseball, Ilitch started a pizza business and invented “The Crazy Bread” (Ok maybe not). With the help of his wife, Marian, the Ilitches opened Little Caesars Pizza Treat in Garden City, Michigan, the first of what would become many thousands of restaurants through franchising.
Ilitch purchased the Detroit Tigers in 1992 from fellow pizza magnate Tom Monaghan, who founded Domino’s Pizza. Under his ownership, the Tigers logged losing records in twelve out of thirteen seasons before their turnaround in 2006.
Ilitch is using his $1.5 billion net worth to finance an under-achieving team with a big-market payroll and small-market attendance.
Kansas City Royals
Owner/ Chief Executive Officer: David Glass
Net worth: unknown
Source of wealth: Former President and Chief Executive Officer of Wal-Mart Stores, Inc.
2010 Forbes Franchise Valuation: $341 million
Glass became the interim CEO and Chairman of the Board of Directors of the Royals on September 23, 1993, following the death of the founding owner, Ewing Kauffman. Under Glass’ leadership, the board cut the payroll budget from $41 million to $19 million. During the Major League Baseball strike of 1994-1995, Glass opposed any settlement with the players’ union without a salary cap, and supported the use of strike breaking “replacement” players, despite a court ruling that Major League owners were in violation of Federal labor laws.
On April 18, 2000, Glass became sole owner of the Royals, purchasing the organization for $96 million. The Board approved his offer despite a competing bid $120 million by Miles Prentice. Major League Baseball said that Prentice did not have league mandated net worth to buy the team. A stipulation in the sale says that any profits from the sale of the Royals must go to charity.
Minnesota Twins
Owner: James Pohlad
Net worth: unknown
Source of Wealth: Inherited
2010 Forbes Franchise Valuation: $405 million
James Pohlad became the owner of the Minnesota Twins after the death of his father Carl Pohlad.
Pohlad purchased the Minnesota Twins baseball franchise in 1984. A few years later, in 1987, the Twins won their first World Series and would win the World Series again in 1991. Pohlad claimed he was close to selling the Twins in 1997 to North Carolina businessman Don Beaver, who would have moved the team to the Piedmont Triad area of the state. The defeat of a referendum for a stadium in that area and a lack of interest in a move to Charlotte killed the deal.
In 2001, he offered to sell the team for a reported $150 million to Major League Baseball as part of a contraction plan by the league, in effect eliminating the Twins.
Carl Pavano to decide after Christmas
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According to a baseball source close to MLB.com’s Bill Ladson, Carl Pavano will most likely make a decision regarding his next team after the Christmas holiday.
The Washington Nationals and the Minnesota Twins remain the two most vocal teams interested in the right-hander.
The 34-year-old right-hander was 17-11 with a 3.75 ERA in 2010 with the Twins
Happy Holidays from the PRO Rumors team!
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From the PRO Rumors team of Allan, Ryan, Juan, Ted, Kevin, Santhi and Grace, we’d like to wish you, your family and friends a safe and happy holiday season!
We’ll be around getting the latest PRO Rumors for you, so check back today, tomorrow and everyday! In the meantime, why not set up your PRO Rumors account to get FREE text and email alerts. Now you can celebrate the holidays and get real-time alerts in case your favorite team makes a move.
How NL Central owners made their money
Posted by: | CommentsChicago Cubs
Owner: Ricketts Family
Net Worth: $1 billion, consolidated under J. Joseph Ricketts name
Source of wealth: Investment banking, founders of TD Ameritrade brokerage, Incapital LLC
2010 Forbes Franchise Valuation: $726 million
J. Joseph Ricketts founded TD Ameritrade in 1971, and it eventually became the largest online discount brokerage in the world. The company had revenues of $2.423 billion in 2009. J. Joseph had four children – Thomas, J. Peters, Laura and Todd.
On July 6, 2009, the family reached an agreement with the Tribune Company to purchase the Cubs, Wrigley Field and 25% of Comcast SportsNet Chicago for close to $900 million. The family officially took over 95% ownership of the team and 20% ownership of Comcast SportsNet Chicago on October 27, 2009. The Tribune Company held 5% of the team.
Cincinnati Reds
Owner: Robert Castellini
Net Worth: unknown
Source of wealth: Fruit and vegetable wholesaler
2010 Forbes Franchise Valuation: $331 million
Castellini became executive vice president at the Castellini Group of Companies after earning his MBA from Wharton School in 1967.
Castellini led a group of investors to purchase the Reds’ franchise from previous CEO Carl Lindner, Jr. for $270 million.
Houston Astros
Owner: Drayton McLane, Jr.
Net Worth: $1.45 billion
Source of wealth: Wholesale groceries with ties to Wal-Mart
2010 Forbes Franchise Valuation: $453 million
McLane’s grandfather was a farm laborer, a small retail grocery owner and a wholesale business grocery owner. After receiving his MBA from Michigan State University in 1959, he worked for the company. In his first 18 months he worked a night shift loading trucks. McLane worked his way up in the family run business from loading trucks, to general manager to president and CEO of the McLane Company. He sold the family business to Sam Walton (founder of Wal-Mart) for cash and Wal-Mart stock in 1990.
He invested the profits of the sale into the Houston Astros in 1992 when he bought the team for $103 million.
Milwaukee Brewers
Owner: Mark Attanasio
Net Worth: unknown
Source of wealth: Money manager, investments
2010 Forbes Franchise Valuation: $351 million
After graduating Columbia Law School in 1992, he founded Dallas investment firm Crescent Capital Partners in 1991 which was later sold to Trust Company of the West in 1995.
He led an investment group in September 2004 to purchase the Milwaukee Brewers from the family of MLB Commissioner Bud Selig for $223 million.
Pittsburgh Pirates
Owner: Robert Nutting
Net Worth: unknown
Source of wealth: Newspaper publishing (West Virginia-based Ogden Newspapers, Inc.), Seven Spring Mountain Resort
2010 Forbes Franchise Valuation: $289 million
Ogden Newspapers, Inc. was founded in 1890 and is headquartered in Wheeling, West Virginia. Nutting is the president and CEO of the newspaper chain. Nutting also owns the Seven Spring Mountain Resort. Because the companies are private, it’s difficult to determine how well they are performing.
The Nutting family acquired a majority interest in the Pirates in 2007 from principal owner Kevin McClatchy for $92 million. Nutting was already the chairman of the Pirates’ board of directors at the time.
St. Louis Cardinals
Owner: William DeWitt Jr.
Net Worth: unknown
Source of wealth: investments (Gradison & Co., Reynolds, DeWitt & Co., Arby’s Restaurant franchises, U.S. Playing Card Company, Spectrum 7 oil, energy), father was owner of sports teams
2010 Forbes Franchise Valuation: $488 million
After receiving his MBA from Harvard University, he started investment firm Gradison & Co. in 1974. He later founded Reynolds, DeWitt & Co. which also Arby’s Restaurant franchises and U.S. Playing Card Company. His other business ventures include the oil company Spectrum 7 and Arbuto Energy.
In 1995, DeWitt led a group of investors in the purchase of the St. Louis Cardinals from the Busch family for $150 million.
Is Trevor Hoffman retiring?
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After 17 seasons and 601 saves, is Trevor Hoffman ready to retire? In an article by Adam McCalvy of MLB.com, it doesn’t sound like he’s ready to hang it up yet.
“I haven’t come to grips yet whether, if something comes along, I want to pitch. That needs to be cleared up first,” Hoffman said. “I’m kind of enjoying being normal and having an offseason. Usually, after only a few weeks you’re beginning the process again of getting your body in tune. I haven’t really engaged in the continual workouts like I’ve done in previous years, and it’s been a little refreshing. I’m hoping it will bring clarity into the decision.”
The last we heard from the 43-year-old was that he was offered arbitration, but he declined it in a prearranged agreement with the Milwaukee Brewers. If he continues his career with another team, he’ll net Milwaukee a supplemental draft pick since he’s a Type-B free agent.
Signing with another team was almost the case in early December. Hoffman said there was an opportunity with the Arizona Diamondbacks, but that closed when the team signed closer J.J. Putz to a two-year deal.
“Arizona got hot there for a little bit, but that closed when J.J. signed,” Hoffman said. “It seemed like a pretty good opportunity.”
Whether or not Hoffman returns to the mound in 2011, he’s already punched his ticket to Cooperstown. After 1035 appearances and a 2.87 career ERA, it’s hard to deny him a spot in the Hall of Fame.
Padres agree to one-year deal with Brad Hawpe
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According to two people close to the Associated Press, the San Diego Padres and Brad Hawpe have agreed to a one-year contract. The deal is pending a physical.
Jon Heyman of Sports Illustrated was the first to report that the deal was close on December 23, 2010. A source close to PRO Rumors also confirmed that Hawpe had interest in San Diego.
The 31-year old, split time with the Rockies and the Rays in 2010. He hit a total of .245 with 9 HR and 44 RBI’s with both teams.
