D-Backs Think About Infusion

[Skipper Steve]

When I first read this, I was a little annoyed - - thinking, these frigs should just go broke - - - then, I thought about it - - why is this so bad? Shoot, every team should think about this. If someone wants to buy in and give some cash, why not take it?

Diamondbacks Mull $160M Infusion
.c The Associated Press

PHOENIX (AP) - Owners of the World Series champion Arizona Diamondbacks could take a month to decide on a $160 million infusion into the team.

Jerry Colangelo, the team's managing general partner, says the money is needed to keep the team intact.

The franchise has been mired in red ink the last three seasons because of hefty salaries and declining attendance.

Colangelo must convince the team's other owners that, although the new money will dilute their initial investments, it would allow the Diamondbacks to stay competitive and become valuable.

``I made a presentation to my partners,'' Colangelo said, The Arizona Republic reported Saturday. ``This enhances the value of the franchise and allows the franchise to go forward.''

Colangelo laid out the plans to the team's investors during a closed-door meeting Friday at Bank One Ballpark.

The team's 23 investor groups have put $198 million into the team.

Since the team started playing in 1998, Colangelo has tapped investors for additional money, had major league baseball co-sign a loan, cut office staff and had players defer more than $120 million in salaries.

AP-NY-12-01-01 1155EST

[SmedIndy]

Soon, the D-Backs will fall like the ill-managed Ponzi Scheme they are.

These contracts, and their business practices remind me of the ABA back in the 1970's. All the contracts were back-loaded, and all of the owners ALWAYS needed cash.

Arizona Diamondbacks is congruent to Oakland Oaks.

[BuzzBuzzard]

Interesting dilemma for the owners. Would you rather have more of something that was worth less of less of something that was worth more? If the franchise is losing money, than they have to take the cash and welcome a new partner into the mix.

[Skipper Steve]

Pretty soon, teams will do what they did in Green Bay a few years back - sell bogus stock to raise some cash.

If they did it in NY, around X-mas time, betcha either team could make $10-20 mill off the scheme.

[CubFan7125]

Let me see if I got this right, instead of hitting up his partners for a 3rd cash call in 3 years(with friends & business associates like Jerry, no enemies are required), this time all he wants to do is devalue their stock by roughly 50%. I'm don't know how people like Colangelo can sleep at night knowing what they are doing to their partners and communities at large. What a scam, stick a gun to your associates heads & tell them that the business will fail unless they sacrifice their investment.

Anyone who is a D-Backs fan better hope for a hell of a run by the Suns this spring, Jerry & his partners also own the Phoenix basketball team, after all that is what kept the White Sox floating in cash throughout the 90's(Jerry Reinsdorf & his partners own both the Sox & Bulls).