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Could the Astros be for sale soon?

 

http://www.forbes.com/lists/2009/33/baseball-values-09_The-Business-Of-Baseball_Rank.html

I believe that Drayton McLane is positioning the Astros to be sold in the very near future. Their value had dropped at the beginning of 2009 for the first time in 5 years, revenue is steady, player expense is consistent with an expected drop in 2010 and operating income hasn’t varied a full percentage point in 3 years. Given our current economic state and the fact that ticket prices are not going up, I foresee the veterans being shopped during the winter meetings.  This would lower player expense, artificially inflating operating income; all of which would make the team more attractive. Drayton bought the Astros for 108 million and now the team if worth 445 million according to Forbes (2009 12th most valuable team in baseball). You have five solid sponsors in CITGO, Coke, Budweiser, AT&T and Continental Airlines with one minor being Methodist hospital. This is an attractive team for a prospective owner.

The Astros are #12 in revenue, 15th in operating income and 12th overall as a franchise.  Drayton McLane is only making money saving moves at this point. He is not even attempting to improve the franchise. They are building the minor league system and there seems to be no expectations coming from the front office any longer. With McLane’s "favorites" (Bagwell, Biggio, Oswalt, Berkman, etc.) slowly retiring and it seems that the novelty of being a sports franchise owner is gone for Drayton and it’s become work. I believe the time is right for an ownership change and could completely change the face of the Houston sports market.

We have long been known as a "football city" but that couldn’t be further from the truth. We are a championship city; a bandwagon city if you will. When the Rockets were winning titles we were "Clutch City". When the Astros were going to the playoffs almost every year we were transforming into a "Baseball town" (evident by back to back 3million in attendance years). If the Texans can get to the playoffs this year we will once again be a football town. But, with all that said, its titles the Houston sports fan follows not a specific sport (apologies to the Dynamo who just don’t rate). With the right owner with the right mindset; the Astros could dominate this town like the Red Sox dominate Boston over the Patriots. I wonder if Mark Cuban would like a baseball team closer to home.

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Who knows whether McLane wants to sell his team? There were rumors earlier that the Astros were “for sale” based upon comments from some of the bidders for the Rangers. However, that seemed to be shot down when Richard Justice and some other reporters looked into it. I’m not sure that cutting payroll is the way to build value before a sale. The Cubs went on a spending spree before they sold the team. Their thinking was that increasing payroll would create a spike in value.

By the way, I don’t think “revenue is steady” for the Astros. The figures I have seen indicate a drop in revenues for the Astros, particularly compared to some of the other teams with higher payrolls. This could well be temporary, based on the recession.

by clack on Nov 13, 2009 7:05 PM CST reply actions  

Check out the link

Revenue hasn’t been great but it’s been steady. All you have to do is walk through the streets of Houston (at your own risk) and see what’s being worn. The number of Cardinals, Cubs and Yankees jerseys are far more that Astros….you can see that at the games. We just don’t support this team…..or any of our sports team like we should. It doesn’t make sense to me. The only way to change it is to win titles. We’re not Florida……we will support a champion.

by AstrosBill on Nov 16, 2009 11:26 AM CST up reply actions  

They’re already champions in my book =D

by Timothy De Block on Nov 16, 2009 12:17 PM CST up reply actions  

revenues shown there, by the way, are for 2008. I think there was significant drop off in 2009.

by clack on Nov 16, 2009 1:34 PM CST up reply actions  

You are correct.....

Those numbers, as I said in the post, were posted at the beginning of the 2009 season. Yes, revenue will more than likely be down for 2009 when released. But after being 1 game out of first and doing ZERO to improve the team in July; Drayton has no one to blame but himself. The Astros were on pace to draw close to 2.7-3 million at that point; but they began to tumble and no one came out to see them as they began to fall in the standings. Had the Astros been able to stay in at least the wild card race I believe attendance would have been close to 3 million. 2006-07 they drew 3 million mostly because of the World Series appearance in 2005. 2008 they drew 2.7 million because of a bad team. 2009 was the same story and I believe they drew close to 2.5 million. If you put a decent product on the field the draw would have been better. The economy is Draytons excuse; not reality. The economy went seriously South in Houston only within the last 3 months. We were one of the last areas to feel the full affects. BUT….2.7 million and 2.5 (ish) million in attendance should show that there is healthy support for this team if our owner would put something worth seeing on the field. I believe the average ticket price is $24. I’m not great at math but using my handy dandy calculator (and fingers and toes) gate revenue (gross) was roughly $60 million. That doesn’t include sponser money and concessions. I know that would be on the losing end, but that’s all the more reason to do what it takes to get back to 3 mil+ in attendance. The only way to do that is to win. They’re currently doing nothing to make that happen.
Below is the Astros attendance through 2008.
http://www.baseball-almanac.com/teams/housattn.shtml

by AstrosBill on Nov 17, 2009 1:46 PM CST up reply actions  

As long as the Astros stay in Houston, and ticket prices stay close to what they are now and never get anywhere near Fenway/Yankee prices I will be happy.

by Silentjay on Nov 13, 2009 8:05 PM CST reply actions  

Wait just 15 years....

I think I should be able to afford them by then.

by baggs on Nov 13, 2009 8:40 PM CST reply actions  

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