Friday, May 20, 2011

So it's not really $680 million...

David Barron does some quick math on the price tag of the Astros:

If you were intrigued by the $680 million price tag for the Astros, consider that that figure presumably includes 60 percent of the team’s partnership with the Rockets, Houston Regional Sports Network, which controls broadcast rights for both teams. The Astros share of the partnership was valued in 2002 at $213 million, which may explain the math of the deal.

In a separate article, Barron talks about the approval process with Steve Greenberg of Allen & Co. (who represented Drayton). Greenberg, on the organization of Crane's group:
“Think of it as if it were a corporation with a board of directors and someone was asking the board to vote on a significant merger or acquisition. They would prepare a summary so the board members were informed, and if they had questions, they could ask them in an informed manner.”

According to One Person With Knowledge Of The Agreement, there are as many as 36 people involved in Crane's group.

1 comment:

Anonymous said...

David Barron seems like a lousy reporter. The $680 million is for the Astros only. McLane is getting another $93 million for his share of the TV network, as has been reported in about 20 other stories.

Barron's "Smooth Sailing Eyed for Crane's Purchase" article today was also a joke. How can a *Houston* story about the Crane approval process not even mention Crane's problems with the EEOC, which was *national news* yesterday?