Wild Rumor/Pure Speculation: Dolan Received 15 Mil Loan from MLB

[Vindicate2]

I don't normally create threads and I know that some people flame about posting rumors, but I'm posting this to in the hopes of learning a few things:

1.) See if anyone has heard something similar.

2.) Or someone that has more information that could confirm or deny this.

Again, I have seen no media sources (on-line or otherwise) and I've heard no discussion/conversation about this topic anywhere (e.g. radio, etc...) , so I'm treating this with a huge salt lick (not just a grain of salt).

The Rumor:

• The Indians/Dolans have (quietly) received a 15 million dollar loan from MLB
• MLB is not happy with the Dolans for needing this loan. The loan, in combination of other things (I was given no specifics those other things were), MLB really wants them to sell the team
• The Dolans know that even though the appraised value of the team (per Forbes-Link) is $353 million, there is no way they would be able to sell the team for more than $300 million in the current market conditions. This would mean a $20+ million dollar loss which is unacceptable to the Dolans.
• Ideally the Dolans want to sell only a portion of the team and remain control of the team (majority shareholder)
  
  Facts That Could Support the Rumor (based on some research I've done):
• Took an 80 million dollar loan + a $20 million line of credit to get the complete the $320 million purchase price from Jacobs. (Link)
  
• 2009 Reported Losses 17 million (Link)
  
• "Snow Days" (Link). Seems to be an attempt to get more revenue anyway possible.
  
• 2010 - Research for Progressive Field "Facelift" - Funding Unclear ... either Indians or Gateway (taxpayers) Link
  
  Additional Rumors:
  Sport Time Ohio - Could be sold soon to FSN or Time Warner Cable (Link)
  
  What this could mean or why this matters:
  For a long time the Dolans have said when the time is right, they will spend. If this is true, then we're all in for a let down ... Roger Dorn said it best in Major League II when he became the owner ... they are "...tapped out"

Disclaimer:
The information I received from information from a high level executive who is a circle with other business high level executives within Cleveland. Of course this all could be false, but why would someone make a rumor like this ? Lot of circumstantial evidence and a wild rumor. Food for thought, I guess...

 

[bushwick_bill]

I don't normally create threads and I know that some people flame about posting rumors, but I'm posting this to in the hopes of learning a few things:

1.) See if anyone has heard something similar.

2.) Or someone that has more information that could confirm or deny this.

Again, I have seen no media sources (on-line or otherwise) and I've heard no discussion/conversation about this topic anywhere (e.g. radio, etc...) , so I'm treating this with a huge salt lick (not just a grain of salt).

The Rumor:

• The Indians/Dolans have (quietly) received a 15 million dollar loan from MLB
• MLB is not happy with the Dolans for needing this loan. The loan, in combination of other things (I was given no specifics those other things were), MLB really wants them to sell the team
• The Dolans know that even though the appraised value of the team (per Forbes-Link) is $353 million, there is no way they would be able to sell the team for more than $300 million in the current market conditions. This would mean a $20+ million dollar loss which is unacceptable to the Dolans.
• Ideally the Dolans want to sell only a portion of the team and remain control of the team (majority shareholder)
  
  Facts That Could Support the Rumor (based on some research I've done):
• Took an 80 million dollar loan + a $20 million line of credit to get the complete the $320 million purchase price from Jacobs. (Link)
  
• 2009 Reported Losses 17 million (Link)
  
• "Snow Days" (Link). Seems to be an attempt to get more revenue anyway possible.
  
• 2010 - Research for Progressive Field "Facelift" - Funding Unclear ... either Indians or Gateway (taxpayers) Link
  
  Additional Rumors:
  Sport Time Ohio - Could be sold soon to FSN or Time Warner Cable (Link)
  
  What this could mean or why this matters:
  For a long time the Dolans have said when the time is right, they will spend. If this is true, then we're all in for a let down ... Roger Dorn said it best in Major League II when he became the owner ... they are "...tapped out"

Disclaimer:
The information I received from information from a high level executive who is a circle with other business high level executives within Cleveland. Of course this all could be false, but why would someone make a rumor like this ? Lot of circumstantial evidence and a wild rumor. Food for thought, I guess...

Please have him sell the team and have Gilbert buy them!

 

[Bob_The_Cat]

I don't normally create threads and I know that some people flame about posting rumors, but I'm posting this to in the hopes of learning a few things:

1.) See if anyone has heard something similar.

2.) Or someone that has more information that could confirm or deny this.

Again, I have seen no media sources (on-line or otherwise) and I've heard no discussion/conversation about this topic anywhere (e.g. radio, etc...) , so I'm treating this with a huge salt lick (not just a grain of salt).

The Rumor:

• The Indians/Dolans have (quietly) received a 15 million dollar loan from MLB
• MLB is not happy with the Dolans for needing this loan. The loan, in combination of other things (I was given no specifics those other things were), MLB really wants them to sell the team
• The Dolans know that even though the appraised value of the team (per Forbes-Link) is $353 million, there is no way they would be able to sell the team for more than $300 million in the current market conditions. This would mean a $20+ million dollar loss which is unacceptable to the Dolans.
• Ideally the Dolans want to sell only a portion of the team and remain control of the team (majority shareholder)
  
  Facts That Could Support the Rumor (based on some research I've done):
• Took an 80 million dollar loan + a $20 million line of credit to get the complete the $320 million purchase price from Jacobs. (Link)
  
• 2009 Reported Losses 17 million (Link)
  
• "Snow Days" (Link). Seems to be an attempt to get more revenue anyway possible.
  
• 2010 - Research for Progressive Field "Facelift" - Funding Unclear ... either Indians or Gateway (taxpayers) Link
  
  Additional Rumors:
  Sport Time Ohio - Could be sold soon to FSN or Time Warner Cable (Link)
  
  What this could mean or why this matters:
  For a long time the Dolans have said when the time is right, they will spend. If this is true, then we're all in for a let down ... Roger Dorn said it best in Major League II when he became the owner ... they are "...tapped out"

Disclaimer:
The information I received from information from a high level executive who is a circle with other business high level executives within Cleveland. Of course this all could be false, but why would someone make a rumor like this ? Lot of circumstantial evidence and a wild rumor. Food for thought, I guess...

One could only hope much of this is true, in particular the bolded part. Hmm...need a new owner? Must be rich, willing to spend money, invested in Cleveland and the downtown area, has an incredible desire to win? Pretty sure everyone knows what I'm getting at here. The question is, would baseball want a guy like Gilbert becoming an owner? He is much in the mold of Mark Cuban, and baseball didn't seem to eager to have him as an owner (though it could be different for a team like the Indians). Actually, here's an even better solution to the problem. Cuban and Gilbert say fuck the rest of the league and go in as partners to buy the Indians. That just sent a chill down my spine...haha

 

[Nom]

If there is any truth to this I really hope they find someone local. I can't imagine someone who wasn't a fan keeping this team in Cleveland where the market is shrinking and there is zero fan support (26th in attendance for a team in first most of the year?)

I know everyone loves to say Dan Gilbert, but not sure why he would buy a team that is his direct competition in the fall and spring. He is too smart a businessman to lose money on the Indians.

 

[AZ_]

Dan Gilbert 4 life!

 

[Nom]

One quick thought on this - the draft was just a few weeks ago and the Tribe went over-slot on quite a few guys. They also spent heavily last year in the draft and just sunk a few million dollars into some international signings two weeks ago.

If they were really so strapped for cash I don't think they would be committing such huge portions of money to these types of signings.

 

[CavsRules]

So, Dolan finally is getting sick of eating off the dollar menu at McDonalds?

 

[Bob_The_Cat]

If there is any truth to this I really hope they find someone local. I can't imagine someone who wasn't a fan keeping this team in Cleveland where the market is shrinking and there is zero fan support (26th in attendance for a team in first most of the year?)

I know everyone loves to say Dan Gilbert, but not sure why he would buy a team that is his direct competition in the fall and spring. He is too smart a businessman to lose money on the Indians.

I disagree. If both teams are good, people will show up no matter if they are playing on the same night or not. I think he'd probably see it as more of a challenge than anything. Also just another way to endear himself to the people of Cleveland.

 

[Vindicate2]

I don't think that they are broke or anything close to what is going on the Mets or Dodgers . One of the reason why the team value has shrunk is the lack of star/marketable talent on the field. If they plan to keep the team (or even if they sell it), the best way to invest is to get talent to come up from the draft to increase the value of the team ... they have no chance getting an all-star caliber player (that hasn't been injured) through free agency.

Also, I didn't get specifics on when the loan was provided. For all we know it was after the 2009 season when the Dolans claimed the 17 million dollar losses. Also, they are on pace for for over 1.6 million fans this year which has to be substantially more than expected that results in additional revenue.

With that said, no media outlet is reporting it, so this rumor could just as equally be bogus.

One quick thought on this - the draft was just a few weeks ago and the Tribe went over-slot on quite a few guys. They also spent heavily last year in the draft and just sunk a few million dollars into some international signings two weeks ago.

If they were really so strapped for cash I don't think they would be committing such huge portions of money to these types of signings.

 

[Pyro]

I hope the rumor of a sale to FSO is true. Bring them back where they belong, and hire some competent announcers too.

 

[Simon]

Here is an article of STO being sold: http://www.waitingfornextyear.com/2011/07/could-this-be-the-end-of-sto/

 

[PriceCarr]

Wow...it would be great to get a new owner for this club. Might bring back the passion to the team!

 

[Steve_424]

If Dolan was in such bad shape that he needed a "secret loan" from MLB, why is it widely reported that they'd be more than willing to add salary?

Teams in financial trouble generally don't look to add on to payroll...and I highly doubt MLB would allow them to add payroll after a "secret loan". Also:

- "Snow Days" is just part of a growing trend of ALL MLB teams looking for ways to increase revenue at their stadiums. The Indians had 9-10 teams planning to do something similar this year in town last winter to check it out. Concerts are another growing trend in MLB - the majority of teams have hosted at least one.

- Until Dolan releases his financial records (and he won't), I don't buy that they lost $17 M in 2010. This is a good article that kind of puts that to rest.

- Why would the Indians be looking to spend money on a Progressive Field "facelift" if they were in such a bad financial situation?


I wouldn't be shocked to see them sell one day, but the evidence presented is pretty weak...I think this is more wishful thinking.

 

[Steve_424]

http://blog.cleveland.com/metro/2011/07/cleveland_indians_construct_mo.html

Cleveland Indians construct model loge, could be blueprint for renovation at Progressive Field

CLEVELAND, Ohio -- Renovations at Progressive Field, hinted at last year by Cleveland Indians officials, may have begun with construction of a model loge completed last week.

Indians President Mark Shapiro said the organization is treating the suite much like a concept car. He said it will showcase the latest in state-of-the-art technology and luxury, a gauge for feedback before going forward with full-scale loge reconstruction.

Changes include the addition of a 42-inch flat screen TV, a smaller version of the flat screen for the private restroom, a built-in team memorabilia display, updated decor and a floor-to-ceiling sliding glass door that creates an open-air feel to the part of the unit that faces the playing field.

The stadium opened in 1994 as Jacobs Field, a jewel of major league ballparks. But years are unkind to parks, and some believe the stadium is at the age where improvements are needed.

"The shelf life of a new stadium is getting shorter and shorter," said Bill Dorsey, chairman of the Association of Luxury Suite Directors in Cincinnati. "You can get outdated real quick if you don't reinvest in your facilities."

Tribe officials talked last year of the need for looking at upgrading heating, lighting and other internal systems, as well as possibly changes to the park's exterior.

Shapiro said loge improvements may or may not play into the larger picture.

Bob DiBiasio, Indians vice president for public relations, said that the organization paid for the model.

Loges take on a life of their own at sporting facilities, for it is the place where people and companies with money can enjoy the game and entertain guests.

Shapiro said the Indians aren't competing against the newer or updated stadiums in the league, but are battling for the corporate and entertainment dollars in Northeast Ohio.

Dorsey said with the way home entertainment has advanced, luxury boxes are an even tougher sell than they were just 10 years ago. Fans can have a great game-watching experience without going to the park.

And, he said, stadiums are compared with those in other cities.

"In a way, professional sports teams do feel some pressure to keep up with the Joneses," Dorsey said. "They're all trying to find the best way to give fans the best game experience."

Team officials are letting prospective renters tour the new model, but believe the most valuable feedback will come from those who rent the suite for a game.

DiBiasio said the model was constructed to better understand people's likes, dislikes and how they use the suite. He said team officials are hoping it will "contribute to what we hope will be a broader suite renovation and re-design in the coming years."

Progressive Field is now one of the older parks in the major leagues. Of the 30 stadiums, only 11 are older than Cleveland's -- and six of those have either undergone a major renovation or their cities are building new.

Shapiro said plans for a full-scale renovation of Progressive Field haven't made it past the discussion phase.

How major repairs will be paid for has not been determined. Phone calls to Gateway, the nonprofit development group that operates the ballpark and nearby basketball arena, were not returned.

John Kohlstrand, a spokesman for Cuyahoga County Executive Ed FitzGerald, said he didn't have enough information to comment, but wasn't aware the Indians have asked for county money.



----------------------------------------------------------------------

Doesn't sound like an organization that's in serious financial trouble to me...

 

[Real Deal]

The Dolans are in this for the money. There is no real sports passion inside these guys, only $$$.

I know Cleveland is a dying population and they had to compete with LeBron and of course the Cleveland Browns. But it's been proven before, that when you spend the bucks, show passion in winning, care strongly about your product, committing to a championship, all this will get die hard, hungry Cleveland fans in the seats.

Nothing is going to pump this town up when you're shopping for gold at Kmart. Get a owner like the late great Mr. Steinbrenner, he'll take all that "small market" talk and shine it up real nice and stick straight up all his opponents candy asses.

Gotta spend money, to make money.