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Loria planning to sell Marlins?


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According to Phil Rogers of the Chicago Tribune there are some skeptics who believe that Loria is planning on driving up the price of the Marlins by buying a bunch of all-stars then selling the team to make some money-perhaps to trade up and buy another team.

 

The logic behind this belief is that the last 14 teams to get a new ballpark (since 2000) have increased their payroll by 17.9% the first year they got their new stadium-and according to that calculation the Marlins should have a payroll around $68MM (instead of the $101MM its at right now). In addition to that we know that Loria had to give up $155MM to reach the $515MM the stadium projected to cost. As a result it's hard to believe he has a lot more money to spend and he's therefore probably trying to build up the cost of the team so that he could "sell high" in a few years.

 

What do you guys think?

 

The Marlins, who also back-loaded the Reyes, Buehrle and Bell contracts, essentially are going for the rare 100 percent increase — even more if they do sign Cespedes.

 

With Hanley Ramirez as the only player earning $10 million-plus, they were at a well-managed $57.7 million to start last season. They're sitting at a minimum of about $101 million now (even with the Cubs paying roughly $16.45 million of Carlos Zambrano's$19 million) and that figure jumps to $116.5 million if you judge Reyes, Buehrle and Bell by their annual averages rather than actual salaries.

 

The easy answer here is Loria has more money to spend because of the new ballpark and an anticipated increase in broadcast revenue. But does he really have this much more money?

 

The stadium is a public-private partnership. Loria only got his long-awaited ballpark after agreeing to pay $155 million of the $515 million projected cost. That only makes the spending binge more curious.

 

This will be the 14th new major league stadium to be opened since 2000. The other teams increased their payroll by an average of 17.9 percent from the last year in their old home to the first year in their new home.

 

Using that calculation, the Marlins would have figured to start 2012 with a $68 million payroll. They blew past that in signing Reyes and have just kept spending.

 

How's this going to end? Some skeptics believe Loria will sell the team within the next five years — possibly as early as 2014 — and cash out, possibly allowing him to trade up for the Mets.

 

http://www.chicagotr...0,403191.column

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I definitely think the author of the article, Phil Rogers, is a bit biased against the Marlins.

 

Not sure how you guys will feel about this but he made a "Power Rankings" list of all the teams in the MLB & ranked the Marlins 9th overall (Braves are 8th & Phils are 7th).

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Wasn't there a clause anyway that Loria would have to pay a penalty if he sold the Marlins within the first couple of years of the new stadium?

 

Yes, you are correct.

 

 

 

 

The Marlins have a long history of salary dumping, but the heft of the newcomers' contracts could make them difficult to unload. Buehrle will be due $18 million in 2014, and Reyes' pay soars to $22 million in 2015-17.

 

The trend in baseball is such that the Marlins might be on the hook for most of that money even if they trade the players.

 

"It has become increasingly difficult to dump salaries in recent years,'' Smith said. "Even big-market clubs in contention for playoff spots are not as inclined today to take on full salaries as a few years ago.''

 

Speculating on Loria's intentions has long been a sport of its own. Many fans in Montreal blame him for the demise of baseball there when he owned the Expos. The Marlins made big profits with baseball's smallest player payroll in 2008-09, then pledged to increase spending after complaints their extreme frugality violated revenue sharing provisions.

 

The new $634 million ballpark has been controversial from the start because more than three-fourths of its cost is being borne by taxpayers. The Securities and Exchange Commission launched an investigation into the financing.

 

So it's tempting to wonder what's behind the backloading.

 

"It could be the owner is looking to sell participation in ownership in the team,'' Abrams said.

 

That was the fear of some city officials, who said that with the ballpark deal significantly increasing the Marlins' value, Loria could reap a windfall by selling the team. A $57 million bill in 2015 for players signed in 2011 would then become someone else's responsibility.

 

Because of such concerns, the city's agreement with the Marlins calls for Loria to pay a significant penalty if he sells the team in the next seven years. The penalty falls from 18 percent of the sale price this year to 5 percent if he sells in 2018. If Loria sold the team for $200 million in 2015, the penalty would be more than $25 million.

 

Samson said the likelihood is high Loria will still own the team three years from now.

 

"Absent health and other issues, it's 100 percent,'' Samson said.

 

Samson also said he anticipates Reyes, Buehrle and Bell will remain with the Marlins for the duration of their contracts. Reyes' deal runs through 2018, while the pitchers' deals expire in 2015.

 

"Reyes is only 28 years old,'' Samson said. "We expect him to be effective until he's 34. And if Heath and Mark can't pitch for three or four years, we made a mistake. If they're not good, we made a mistake.''

 

From now on, any mistakes by the Marlins will be costly.

 

http://sportsillustr...1206/index.html

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Regardless who wrote the story, would anyone really be upset if, oh, lets say, Mark Cuban purchased the team? If we could get a legit owner in here, with the finanacial ability to put a winner on the field every year, instead of having to swindle the MLB rules to make a profit, it would be best for the organization. Just sayin'

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Regardless who wrote the story, would anyone really be upset if, oh, lets say, Mark Cuban purchased the team? If we could get a legit owner in here, with the finanacial ability to put a winner on the field every year, instead of having to swindle the MLB rules to make a profit, it would be best for the organization. Just sayin'

 

 

On the basis of you sayin' that you're just sayin'... yes, ur right.

 

That said, I don't see Loria selling so soon at all. If he truly believes he has redesigned the Marlins into a winner, why wouldn't he want to be the owner standing on the podium holding the trophy at the end of October?

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Loria isn't a "legit owner"? Maybe Cuban is a super owner, but Loria is definitely legit.

 

 

Agreed. Whenever a man can own a team all by himself, or have the opportunity to own two different entities in a lifetime, he's got his sh*t down.

 

An illegitimate owner is one of them owners who can barely hold on to majority share in a group.

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Loria isn't a "legit owner"? Maybe Cuban is a super owner, but Loria is definitely legit.

 

 

Agreed. Whenever a man can own a team all by himself, or have the opportunity to own two different entities in a lifetime, he's got his sh*t down.

 

An illegitimate owner is one of them owners who can barely hold on to majority share in a group.

LOLMets?

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Marcus Hayes from Philly.com thinks that Loria spent his money a lot wiser than the Phillies did back in 2003 before they got their new ballpark (Thome/Bell/Millwood/Burrell) but with such a small stadium (35,000) he thinks the Marlins are gonna need to "draw decently" in order to keep Loria from having to sell the team.

 

I agree with this. If for some reason attendance over the next few years doesn't rise then Loria will lose a ton of money and probably be forced to sell the team. If on the other hand the Marlins sell out every game (or at least come close) then I can't imagine Loria having any financial problems that would force him to sell the team.

 

I think Loria selling/keeping the team will have a lot to do with the attendance over the next few years.

 

The Marlins followed the Phillies' lead, just a year late.

 

In anticipation of greater revenue from their new ballpark opening in 2004, the Phillies, in 2003, pre-invested in free agents Jim Thome and David Bell, traded for pricey starter Kevin Millwood and extended Pat Burrell's contract, a total commitment of $172 million.

 

In anticipation of greater revenue from their ballpark opening in April, the now-Miami Marlins invested a total of $203 million in shortstop Jose Reyes, lefthander Mark Buerhle, closer Heath Bell and manager Ozzie Guillen, most of it in back-loaded deals.

 

Thome's name, complemented by Millwood's pedigree from the Braves organization, bumped the Phils' attendance to ninth best in club history in the last season of Veterans Stadium, then set a club record the first season in the new yard.

 

Reyes' name, complemented by the pedigree of former shortstop Hanley Ramirez, now at third, the power of Mike Stanton in rightfield and a tantalizingly talented starting rotation, is expected to do the same.

 

Of course, the Phillies didn't really make noise until after their surprise run to the playoffs in 2007 - in which Thome, Millwood and Bell played no part whatsoever. Attendance never dropped below 2.6 million.

 

Since their run in the second half of 2007, the Phillies have blown away the attendance record they set in 2004. They also have won five straight division titles. Their payroll ballooned from nearly $94 million in 2004 to $173 million last season.

 

With a 35,000-seat stadium - about 10,000 fewer than the Bank - don't expect the Marlins to crest above $150 million.

 

And if they don't draw decently in the next couple of seasons, well, owner Jeffrey Loria might not have to worry about the payroll, since he probably will have to sell the team.

 

Can these Marlins make a run at five division titles? For that matter, can they make a run at their first ever?

 

They sure seem loaded.

 

With all due respect to Albert Pujols, the best hitter of his generation, and to Prince Fielder, perhaps the new best lefty power hitter in the game, Reyes could turn out to be worth more than either.

 

At 28, in a contract year, Reyes showed just how good he could be if he focuses. He led the league with a .337 average and posted career highs with a .384 on-base percentage and .493 slugging percentage. He is a career .292 hitter, with the range and the arm to win a Gold Glove at his position every season.

 

 

 

http://articles.phil...-hanley-ramirez

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I think that guy is overrating our squad.

 

But, anyway, I wouldn't be "mad" at Loria for selling the team if he lost a ton of money. Obviously, the other article was implying that the stadium and free agency were all part of a scheme to sell the team at a profit to move on to a bigger fish (no pun intended).

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I don't believe that Loria is actually PLANNING to sell the team. After all it took to have this new ball park built, it would be hard to see him turn and around sell the team off. I think its just so hard for people to believe that the Marlins are spending money that there must be some ulterior motive.

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