Tuesday, May 17, 2011

Jim Crane: the next Frank McCourt?

That's the question The Biz of Baseball asks:

Of the $680 million purchase, just under half ($300 million) is going to be financed with debt. According to Mike Ozanian of Forbes, “In 2010 the Astros had operating income of $14 million, so if Crane parks $300 million of debt on the team the franchise would be in technical default of the league’s debt limit, which is 10 times earnings before interest, taxes, depreciation and amortization.”

2 comments:

Anonymous said...

Yes and I've already started my little conversation with Maury himself. I like Crane and he will not be the next Frank McCourt.

-SS

Anonymous said...

Okay, then, as long as we have your word for it, I guess the $300 million in debt is no big deal.