Thursday, July 22, 2010

More fiscal news

I missed this FWST Schlacter article yesterday detailing Ryan's testimony that specifically detailed how the minimal 2010 budget approved by MLB has hurt TX:

While Ryan may not have fulfilled his group's strategic mission, he did shed light on how he has had to run the team under monumentally challenging circumstances.

The team president contended that the bankruptcy put a "very expensive cost" to the trades of star pitcher Cliff Lee and catcher Bengie Molina. The team gave up some excellent talent, including first baseman Justin Smoak and three players in the minors. Even though the team received $4 million, it didn't compensate for the loss of talent, Ryan said.

These trades were accomplished only by closing down one of two Dominican teams and deciding not to sign any players from abroad. And this is going to hurt down the road, he predicted. "We're going to have a void in our system."

Morale among his non-playing staff is poor. They have not gotten a pay raise in two years while seeing a number of their colleagues -- including three senior executives -- laid off to cut overhead, he told the court. The Rangers risked losing talented staff to financially stable teams offering multiyear contracts, he warned.

And there's a late August deadline to order a new video scoreboard, which could run from $5 million to $12 million, which he said, is very important for marketing purposes.

Some pretty astonishing stuff here including the news that the DSL2 club was actually shut down to save money, something the club had previously denied. And from this fact, he seems to be saying that the club had to free up money in order to budget any FA acquisitions for the year. That is to say, MLB apparently did not approve a budget for the team that included those funds. Amazing. MLB forced TX to scrounge up loose change to due anything other than pay operating costs and salaries. If they did not approve enough money to account for overslot signings this will mark a sad and embarrassing day for the franchise and MLB even more than the Purke deal was.

Also, there was a mention from another source yesterday that TX is likely to start losing some ML scouts as teams try to woo them with better deals while TX treads water. What a fucking disaster. In that same piece it was revealed that Ryan did not know (which I assume to mean that no one on the Greenberg team knew) that TX could have (still can?) asked the court upon filing to request more money from MLB to maintain the club's value (read, not having to sell prospects) or ask the lenders to if MLB refused. If true, what a huge oversight for the Greenberg-Ryan group.


No comments:

Post a Comment