Player strike would sting Sox ownership
by Scott Van Voorhis
Wednesday, July 10, 2002
players' strike could hit the Boston Red Sox harder than almost any other team in baseball as the fabled franchise grapples with a mountain of debt from its recent sale, industry observers and insiders say.
Led by Wall Street financier John Henry, the team's new owners are working to pay down as much as $250 million in bank loans, a financial hangover from the record $700 million they paid to buy the Olde Towne Team.
Henry and his small army of 17 partners are carrying one of Major League Baseball's largest debt loads, with yearly interest payments soaring into the $20 million range, observers say.
A players' strike would deal a harsh blow to the team on several financial fronts, from shutting down lucrative Fenway Park to virtually canceling the team's highly successful New England Sports Network, observers say.
Still, some proposals being pushed by league owners - greater revenue sharing and a ``luxury tax'' on team's with big payrolls - could also hit the Sox and other big-city teams hard, observers say.
``They are one of the teams that stands to lose the most as a result of the strike or a lockout,'' said Marc Ganis, a sports business expert with Chicago's Sports Corp.
So, the Red Sox are in a very precarious position financially. If John Henry is to be believed, the Sox are already losing money this season yet:
1) Larry Lucchino is leading the charge against the player's union and acting as Bud Selig's mouthpiece
2) It appears that the Red Sox are also in favor of increased revenue sharing, which will take revenue away from the Red Sox and make it more difficult to turn a profit.
I don't get it.
by Scott Van Voorhis
Wednesday, July 10, 2002
players' strike could hit the Boston Red Sox harder than almost any other team in baseball as the fabled franchise grapples with a mountain of debt from its recent sale, industry observers and insiders say.
Led by Wall Street financier John Henry, the team's new owners are working to pay down as much as $250 million in bank loans, a financial hangover from the record $700 million they paid to buy the Olde Towne Team.
Henry and his small army of 17 partners are carrying one of Major League Baseball's largest debt loads, with yearly interest payments soaring into the $20 million range, observers say.
A players' strike would deal a harsh blow to the team on several financial fronts, from shutting down lucrative Fenway Park to virtually canceling the team's highly successful New England Sports Network, observers say.
Still, some proposals being pushed by league owners - greater revenue sharing and a ``luxury tax'' on team's with big payrolls - could also hit the Sox and other big-city teams hard, observers say.
``They are one of the teams that stands to lose the most as a result of the strike or a lockout,'' said Marc Ganis, a sports business expert with Chicago's Sports Corp.
So, the Red Sox are in a very precarious position financially. If John Henry is to be believed, the Sox are already losing money this season yet:
1) Larry Lucchino is leading the charge against the player's union and acting as Bud Selig's mouthpiece
2) It appears that the Red Sox are also in favor of increased revenue sharing, which will take revenue away from the Red Sox and make it more difficult to turn a profit.
I don't get it.
