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Sometimes the best trades are the ones not made. April 12, 2008

Posted by misterbaseball in ..Trade Rumors, Baltimore Orioles, Boston Red Sox, Chicago White Sox, Detroit Tigers.
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For most baseball fans the "Hot Stove League" is a very exciting time of year.  This past off-season we saw several big name players that were dealt.  But what about those players who were rumored to be dealt but were not.  Among those who were supposed to be traded were Joe Crede, Brandon Inge, Brian Roberts, and Coco Crisp just to name a few.  As fans, we are often times eager to pull the trigger on these deals when we see a younger, cheaper option present itself.  Or in the case of Inge, whose position was taken away from him due to a trade.  In a 162 game season it is hard to predict what will happen or who will get hurt.  In an era where players will not play hurt or management won’t let them, depth is becoming a key to a successful season. 

In spring training Tigers center-fielder Curtis Granderson suffered a broken bone in his hand, leaving Detroit Brandon_inge looking for a replacement.  Here’s where Brandon Inge comes into play.  Inge, who is probably one of the best all around athletes in the game, fits nicely into center-field to replace Granderson.  Inge can also play a gold glove third base and is slated to be Pudge’s back up at catcher.  With the acquisition of all-star Miguel Cabrera it was pretty much assumed that the Tigers would deal Inge. But with the way that this season has started Inge could turn out to be their MVP in 2008.

White Sox third baseman, Joe Crede has been slated to be traded since he went down last season because of back surgery.  Josh Fields came up from the minors and filled in for Crede the rest of the season.  Fields hit .244 with 23 home runs and 67 RBI’s in 373 at bats in 2007.  Even though Josh didn’t hit for a high average his power numbers were off-the-chart for his number of plate appearances.  White Sox GM Ken Williams was aggressively shopping Crede until opening day, although he may change his mind after a hot start from Crede.  Joe has opened the season hitting .408 with 3 home runs and 11 RBI’s.  Until last seasonJoe_crede, Crede was viewed as a top tier third baseman.  When injuries rob a player of almost a whole season it seems like fans and management forget what that player has done in the past.  Just ask Jorge Cantu.  Cantu was an up and coming star for the Tampa Bay Rays until he fouled a pitch off his left foot and was out for the better part of 2006 and wasn’t given a chance to play much in 2007.  He is now getting a chance to start at third base for the Florida Marlins.  Unlike Cantu, Crede has retained his starting job with Chicago.  When healthy, Crede will produce; and after a horrible 2007 season the Sox could use all the offense they can get.

The Baltimore Orioles were supposed to trade Brian Roberts to the Chicago Cubs for a host of young players.  For some reason both sides couldn’t come together on a deal.  With the direction that the O’s are going, one would figure that Robert’s and his salary would become expendable.  Brian is the heart and soul of the Baltimore team and his leadership will prove to be invaluable for the younger players if they Brian_robertsdecide not to trade him.  Even though it is early in the season the O’s are the first place team in the AL East at 6-4.  Most experts are predicting the O’s to finish last in the East and they may, but a player like Roberts is the type of player  that any manager would love to have around.

The Boston Red Sox have a problem that every team would love to have, an abundance of depth.  Case in point, Mike Lowell was recently put on the 15 day disabled list.  An injury like this would leave most teams scrambling to find a replacement.  Not Boston, they simply moved Kevin Youkilis to third base and brought Sean Casey off the bench to play first.  On a lot of teams Casey would be a starter but he decided to take a lesser role to be a Red Sox.  That is the same position Coco Crisp is in.  Crisp is a talented player who could be a starter on almost any other team.  Right now he is sharing time withCoco Jacoby Ellsbury.  Crisp would like to be an everyday player and the Sox have entertained offers to move him, but the depth that he adds is what separates good teams from championship teams.  Plus the Red Sox are not hurting for money so there is no reason to trade him unless the right deal is presented. 

The major league season is a long one, filled with ups and downs.  It is hard to predict who will stay in the lineup for the entire season.  That is why it is so important to have depth within an organization.  There are two ways teams can have depth.  One way is to trade high priced talent such as the Twins did with Johan Santana.  Minnesota got three younger, cheaper players in return for Santana.  The other way involves keeping home grown talent in the organization.  Almost every team in the majors can afford to take on the salary of an Alex Rodriguez.  Therefore teams can afford to keep their higher priced talent, if so desired.  It isn’t as important for a team to cut salaries like it was ten years ago.  Obviously there are situations where a trade is the best solution for both teams.  Even so, the smaller market teams get millions of dollars each year in revenue sharing from the bigger market teams.  So there is plenty of money to go around and that is why sometimes the best trades are the ones not made.

White Sox express interest in Crisp. April 8, 2008

Posted by misterbaseball in ..Trade Rumors, Boston Red Sox, Chicago White Sox.
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White_sox_logo_2According to XM’s Mark Patrick, the Chicago White Sox have expressed interest in acquiring Boston outfielder Coco Crisp.  Crisp became expendable after a mediocre Coco_crisp_2 2007 season and the emergence of Jacoby Ellsbury.  Crisp, unhappy about a platoon role, is looking to be traded to a team where he will get consistent playing time.  Although Crisp is unhappy about platooning he has said that he would accept a lesser role if necessary.  If Crisp is dealt to the White Sox there would be no guarantee of a starting job.  The only outfield spot that isn’t nailed down is left field, where Carlos Quentin and possibly Jerry Owens are set to play.

Chicago White Sox Review March 22, 2008

Posted by misterbaseball in Chicago White Sox.
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Sox_logo The Chicago White Sox struggled in 2007 after coming off back-to-back 90 plus win seasons.  Injuries and sub-par performances contributed to a fourth place finish with a record of 72-90.  Manager Ozzie Guillen was a hot topic around Major League Baseball last season with his erratic outbursts directed toward the media.  There were rumors all season that Guillen would be fired due to his over-the-top behavior and hisOzzie_guillen_2  team’s poor performance on the field.  Rather than firing Guillen, GM Ken Williams extended his contract through 2012. 

     Chicago did make some pretty significant off-season transactions acquiring Nick Swisher and Orlando Cabrera to help bolster an enemic offense.  In the process the South Siders lost pitchers Gio Gonzalez, Fautino De Los Santos, John Garland, and outfielder Ryan Sweeney. The offense got another boost when Chicago acquired Arizona outfielder Carlos Quentin in exchange for minor league first baseman Chris Carter.  Ken Williams added two quality arms to the bullpen in Scott Linebrink and Octavio Dotel giving closer Bobby Jenks some much needed support.  In other moves the Sox declined to offer contracts to outfielders Scott Podsednik and Darin Erstad.
     In 2007 the White Sox power numbers were where they needed to be, getting over 20 homeruns from five different players.  The main problem last season was that their team average was only .246 and there wasn’t anyone with over 96 RBI’s.  Guillen’s club had virtually no speed with the exception of Jerry Owens who stole 32 of the teams 78 stolen bases.  The 2008 campaign should have an easier time of scoring runs with the additions of Cabrera and Swisher at the top of the order.  Third Nick_swisher_2 baseman Joe Crede is expected to be dealt in order to shore up their pitching staff and to make room for Josh Fields.  Thus far no team has been willing to pay the price that the Sox are seeking.  Look for Crede to dealt by the All-Star break.  With or without Crede the White Sox stating lineup has the potential to be a potent one.  Chicago’s starting lineup will be as follows:
1B   Paul Konerko
2B   Danny Richar/Alexei Ramirez/Juan Uribe
SS   Orlando Cabrera
3B   Joe Crede/Josh Fields
LF   Carlos Quentin/Josh Fields
CF   Nick Swisher
RF   Jermaine Dye
C    A.J. Pierzynski
DH  Jim Thome
     The first two spots in the starting rotation should be pretty solid with Javier Vazquez and Mark Buehrle.  After a horrible season filled with personal turmoil, Jose Contreras is looking to bounce back  from a 10-17 effort with a 5.57 ERA.  Contreras has come to spring training in incredible shape and with a Mark_buehrle_3 better mental outlook.  He should look more like the Jose Contreras of 2006 as it appears his personal problems are in the past.  The other two spots in the rotation will be filled with youngsters John Danks and Gavin Floyd.  Both Danks and Floyd have the potential to be 15 game winners.  They showed flashes of brilliance last season but could not put it together for a full season.  Bobby Jenks will solidify a bullpen that is looking to improve on the 07 season.  The pen should be much improved due to the additions of Scott Linebrink and Octavio Dotel.  Dotel has electric stuff but injuries have slowed him much of his career.  The rest of the bullpen includes Matt Thorton, Mike MacDougal and Boone Logan.
     U.S. Cellular Field should see plenty of excitement in 2008 as the White  Sox are looking for a repeat Bobby_jenks_3 performance of 2005, when they won the World Series.  A lot of things will have to go right for the Sox to compete for the AL Central crown.  Look for Chicago to finish second or third and possibly compete for the wildcard. 

The Future of the Cubbies-Part 2 of 4 Top Ten Buyer Candidates March 2, 2008

Posted by misterbaseball in Arizona Diamondbacks, Baltimore Orioles, Chicago Cubs, Chicago White Sox, Milwaukee Brewers, New York Yankees, Seattle Mariners.
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If Sam Zell follows through on this commitment to sell the Cubs, which is a 99% possibility at this point, how does that decision impact the Cubs, and their ability to win a World Series Championship?

There are many factors that go into who will acquire the Cubs.  Primarily, it will come down to approval of three-fourths of MLB owners, and a sign off by Bud Selig.  Except for the sale of his own Milwaukee Brewers in 2005, I doubt Selig has ever been more interested in a franchise sale.  He quickly points out that it was in Wrigley Field in 1944 “I saw my first major league game, so I’ve been going there for 63 years.”  Selig has also been quoted saying a local owner is preferred and that he will pay very strict attention to the sale.  (Hal Brody, USA Today, 2007).

So here they are, Big League Chatter’s:

Top Ten Potential Buyers of the Chicago Cubs

10_2
Peter Angelos:
Trial lawyer (http://www.angeloslaw.com) and the current owner of the BaltimorePeter_g_angelos_3

Orioles. He led a group of investors that purchased the team in 1993 for $173 million from Eli Jacobs.  Reported as recently engaged in prolonged discussions with Cal Ripken, Jr. about selling the Orioles to the former shortstop and other financial backers.
Notes: 15 years of MLB ownership experience, but going into the 2008 season, the Orioles have had ten consecutive sub-.500 seasons.

9
Bill Murray:
Award winning actor.  Gained national exposure onBill_murray
Saturday Night Live, following that with roles in films such as Stripes, Groundhog Day, Space Jam, Caddyshack, Ghostbusters and Rushmore. Known as being the Cubs #1 fan.
Notes:  Murray doesn’t appear to be a serious buyer for the Cubs.  He has reportedly shrugged off the prospect of becoming a part owner of the team.  Tribune Co. announced plans in April 2007 to sell the Cubs, and Murray said he has been approached about becoming part of a group that would make a bid. "I heard from a couple of people," he said, "but I’m not that organized." (USA Today, 2007).

8
Jerry Colangelo:
Former majority owner of the Phoenix Suns of the NBA, the Phoenix MercuryJerry_colangelo
of the WNBA, the Arizona Rattlers of the Arena Football League and the Arizona Diamondbacks.  Colangelo has been named the NBA’s Executive of the Year four times (1976, 1981, 1989, 1993).
Notes:  Colangelo brought the Diamondbacks into existence and from 1998-2004, amassed a record of 575-559, with three first place finishes in the National League, and one World Series title against the Yankees in 2001.

7
Jeff Smulyan:
  Founder and Chairman of the Board of Emmis Communications Corporation, anJeff_smulyan
Indianapolis-based radio, TV and magazine publishing company with operations in 10 U.S. markets, as well as Hungary, Belgium, Bulgaria (Emmis.com, 2007). As principal shareholder, he led a group that purchased the Seattle Mariners baseball team in 1989, selling the club three years later. During that time, Smulyan served on the Major League Baseball owner’s Ownership and Television committees. (Wikipedia, 2007).
Notes:  Under Smulyan ownership, Mariners were 233-253.  Should fit Selig’s “local” criteria.

6
Andy McKenna:
  Chairman of McDonald’s Corporation. Mr. McKenna is also the Chairman ofAndy_mckenna_sr
Schwarz Supply Source. He is a director of Aon Corporation, Chicago Bears Football Club, Inc., McDonald’s Corporation and Skyline Corporation. He acted as Chairman of the Chicago White Sox during his group’s ownership of that organization from 1975-1981. He also served as Chairman of the Board of the Chicago Cubs, upon purchase of that entity by Tribune Company, from August 1981 through December of 1984. He also owns a portion of the Bears.
Notes: Former Cubs Chairman is "mentioned as capable of putting together an investor group," (Tribune 2007).

5
Ricketts Family:
Joe Ricketts, was the founder and chairman of TD Ameritrade, the largestJoe_rickets
online discount brokerage in the world, based in Omaha, Nebraska. In 2007, Ricketts and his family ranked #161, according to Forbes Magazine, of the 400 wealthiest americans, with a net worth of $2.6 billion. Though he grew up in Omaha, Tom Ricketts received a bachelor’s degree and an MBA from the University of Chicago and worked as a pit trader at the Chicago Board Options Exchange before forming Incapital with several partners. Tom’s younger sister Laura, who started a Web firm called Ecotravel.com, also lives in Chicago, as does younger brother Todd, who has worked in the financial-services industry. Pete Ricketts told a reporter during his Senate campaign that at one time he lived across the street from Wrigley Field and is a longtime Cubs fan (Wikipedia, 2007).

Notes: The Ricketts have apparently kept a low profile up to this point.  It appears they recognize Selig’s "local" criteria and are pressing to emphasize Tom Ricketts’ ties to Chicago and the family’s interest in being long-term owners of the Cubs.

4
Tom Begel:
Chairman and Principal of TMB Industries, a private investment firm formed by him inTom_begel
1989, specializing in the acquisition and operation of industrial and manufacturing companies. He is Chairman of DynAmerica LLC and Grand Craft, Inc., as well as a Director of NutraMax, Inc., Weber Manufacturing and Miller Products. Mr. Begel was Chairman and Chief Executive Officer of Transportation Technologies, and Chairman of Fuel Systems LLC and Phillips & Temro LLC. In addition, he was Chairman, President and Chief Executive Officer of The Pullman Company until its acquisition in 1988 and was Senior Vice President of the Engineered Products Group of the Signal Companies, Inc., and Senior Vice President of Wheelabrator-Frye, Inc. from 1981 to 1983. He is a graduate of the University of Missouri at Columbia (TMBIndustries.com, 2007).
Notes:  Begel has been reported as assembling a group of 15 investors to purchase the Cubs, of which include William Marovitz, a restaurant owner, and Ernie Banks, who has contacted John Canning Jr. as well for a possible partnership.

3
Mark Cuban:
  Entrepreneur and owner of the Dallas Mavericks NBA basketball team. With anMark_cuban
estimated net worth of $2.6 billion, he was ranked 161st on the 2007 Forbes 400 list of richest Americans.  Cuban has quite the portfolio of companies such as HDNet, Landmark Theaters and others ventures.
Notes: Cuban’s Mavericks have been to the playoff’s every year since his purchase in 2000, taking a loss to the Miami Heat in the finals of 2005-2006 season. The team has racked up an amazing 446 wins, compared to only 187 losses during Cuban’s tenure. That’s a winning percentage well over .700.  “My goal has always been to make the league better, better as a business and better as a product for the fans.” (Portfolio.com, 2007). Speculation is that Cuban would not get approval from the three-quarter vote of current MLB owners. “The commissioner wants no renegades who will break ranks on labor matters or break the bank on player salaries” (John Helyar, ESPN.com, 2007).

2
Don Levin:
Founded D.R.L. Enterprises in 1969, according to his biography on the Wolves’ webNo_photo_available
site. The Chicago-based company has holdings in industries including tobacco processing, aircraft and medical-equipment leasing.
Notes: Levin is ready to buy the Cubs, He’s a local guy, fits the bill as a pro sports owner, and has been successful in business and with the minor-league Chicago Wolves hockey team. "I have been in contact with the people at Tribune and with bankers," Levin said after returning from a business trip to Australia, New Zealand and Hawaii. "I’m putting together the necessary things to bid on the team."  Levin’s Wolves have won three championships since their inception in 1994, and he remains a passionate Cubs fan (Chicagotribune.com, 2007).

1
John Canning Jr.:
CEO of Madison Dearborn Partners, (MDP) LLC, which specializes inJohncanning
management buyout and special equity investing. MDP manages over $10 billion of committed capital and portfolio investments. Prior to founding MDP in 1993, Mr. Canning spent 24 years with First Chicago Corporation, most recently as Executive Vice President of The First National Bank of Chicago and President of First Chicago Venture Capital. He currently serves on the Boards of Directors of The Federal Reserve Bank of Chicago, Economic Club of Chicago, Jefferson Smurfit Group plc, Milwaukee Brewers Baseball Club, Northwestern Memorial Hospital, and Children’s Inner City Educational Fund. He also serves on the Boards of Trustees of the Big Shoulders Fund, The Chicago Community Trust, Dublin City University Educational Trust, The Field Museum, Museum of Science and Industry, and Northwestern University (Wikipedia, 2007).
Notes: Local Chicago native should get approval from Selig and MLB owners.  Considered the favorite by John Helyar at ESPN.com.  Gregory Meyer of ChicagoBusiness.com also favors Canning stating  “Mr. Canning’s appears to have the upper hand, partly because of his track record as a part-owner of the Milwaukee Brewers and his friendship with Major League Baseball Commissioner Bud Selig.”

So there they are. The top ten potential buyers of Chicago’s beloved Cubbies.  While it’s apparent that many fans are rooting for Mark Cuban to buy the Cubs, as are most of the analysts here at Big League Chatter, John Canning Jr. appears to have everything in place to solidify a deal on the Cubs. 

Where’s Kenny Lofton Going? February 26, 2008

Posted by misterbaseball in Atlanta Braves, Chicago Cubs, Chicago White Sox, Cleveland Indians, Houston Astros, Los Angeles Dodgers, San Diego Padres, Seattle Mariners, Texas Rangers.
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Lofton_2
Kenny Lofton will turn 41 at the end of May this year and he has yet to sign with a team this off-season.  The much traveled Lofton made his big league debut in 1991 with the Houston Astros.  Since then, Lofton has played for the Cleveland Indians, Atlanta Braves, Cleveland again, Chicago Whitesox, San Francisco Giants, Pittsburgh Pirates, Chicago Cubs, New York Yankees, Philadelphia Phillies, Los Angeles Dodgers, Texas Rangers and Cleveland one more time.  Due to him changing teams so much the shipping company DHL did a commercial on him about always being on the move that aired constantly last year during the playoffs.

Kenny Lofton is a career .299 hitter and good at stealing bases.  There are several teams that could use his services this season to make a push at the playoffs.  The Atlanta Braves, San Diego Padres, Chicago Cubs, Cleveland Indians and Seattle Mariners all seem like a good fit for the talented and aging Lofton.  It could be that some of these teams are waiting to see what happens at the start of spring training.  The Cubs Felix Pie will get the opportunity to play CF at Wrigley this year before they consider going after anyone.  The Mariners were hoping Adam Jones would be in the mix for their outfield but then they shipped Jones to Baltimore in the Erik Bedard trade.  San Diego has Edmonds in CF, but Lofton is very capable of playing LF too.  Atlanta hasn’t settled on their outfield yet either, except for Francouer.  If Josh Anderson performs well in March he may be starting in April for the Braves.  Finally, Cleveland could use Lofton, but look for their younger players like Ben Francisco, Franklin Gutierrez and Shin-Soo Choo to get a shot first.

The Future of the Cubbies-Part 1 of 4 February 23, 2008

Posted by misterbaseball in Chicago Cubs, Chicago White Sox.
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The fact that the Cubs represent one of the most historic teams in baseball, makes the possible sale of the team and Wrigley field, even more distressing. The fans, the league, and the City of Chicago, all have a vested interest in this deal and the future of Cubs baseball.

Over the next several weeks, the analysts here at Big League Chatter will look into the myriad of possibilities that await the fifth richest team in baseball, and how Sam Zell can create a win-win-win situation for everyone involved.

The Fans

Cubfans_2Since their World Series victories in 1907 and 1908, both times against Ty Cobb’s Detroit Tigers, the Cubs have come up empty in their quest for a championship.  It doesn’t take a rocket scientist to figure out that Chicago Cubs fans are chomping at the bit considering the team has spent $100 million on a roster that contains Lee, Soriano, Zambrano, Ramirez, and Marquis just to name a few.

The question everyone is asking is what effect Sam Zell will have on the quest for a world series victory.  If Zell sells the Cubs, as he is presently considering, the details of the deal will determine the fate of the team.   With so many variables and possible outcomes, this will be analyzed in part 2 of this section. For now, the assumption will be made that Zell will keep the team through the 2008 season, and realize what a great investment he’s made.

Can the Chicago Cubs achieve the coveted World Series title under the direction of Sam Zell ownership?  That would be a function of Zells’ leadership and experience.

Leadership:  Sam Zell is a leader.  Forget the fact that his personality is rough around the edges and he cusses like a sailor, this guy has been building his business portfolio since he was 25 years old and is now a billionare.  That doesn’t happen by accident.  He has been dubbed a visionary in the real estate investment trust industry, and until recently was the largest land owner in America.  Zell owned more apartment communities and office space than anyone in the country.  Forbes magazine rated his companies "one of the most admired in America."  Apart from real estate, Zell has invested in everything from garbage recycling to communications and specialty wire companies. 

It’s impossible to research Sam Zell and not come to the conclusion that he knows what he is doing.

Experience:  Sam Zell has experience.  He has never owned a sports team, aside from his small percentage in the White Sox which is non-controlling, but Sam is a business guy through and through and his ability to create value and make money is impressive.  At a recent speech to some LA Times staff ,he made the point that he is not a newspaper guy, but he is a business guy.  He is focused on serving the customer and providing them with the best product possible.

Sam Zell’s Bio
1963-BA University of Michigan
1966-JD University of Michigan Law School.
1968-Began investing in real estate
1969-Founded Equity Residential Properties: Largest owner of apartments and residential communities in America.
1976-Founded Equity Office Properties: Largest owner of office and retail space in America.
1986-Net worth of $200 million
1987-Bought Anixter International (AXE); Communications and specialty wire company.
1992-Bought Jacor Communications: Radio broadcast group that included a television station.
1993-Took Equity Residential REIT public (EQR)
1993-Took Equity Lifestyle REIT public (ELS)
1993-Took Equity Office Properties REIT public (EOP)
1997-Founded Capital Trust: A specialized real estate finance company.
1999-Founded Equity International: Company controls Gafisa, the leading homebuilder in Brazil; BR Malls, one of the largest shopping center owners and operators in Brazil; Homex, the fastest growing homebuilder in Mexico; and Xinyuan, a rapidly expanding homebuilding company in China.
2002-Bought American Commercial Lines (ACLI): Commercial Barge Manufacturing Company
2005-Bought Covanta (CVA): Waste to energy plant
2007-Received Kellogg Award for Distinguished Leadership from the Kellogg School of Management.
2007-Bought Chicago Tribune (TXA): Company owns the Chicago Cubs, Wrigley Field, LA Times, ComCast SportsNet and several other t.v., radio, and newspaper companies.

In short, Sam Zell is considered a pioneer, a visionary, a leader, and a pure genius when it comes to business. Zell has been criticized in the news for his decision to take on the high debt load of the Tribune, but the fact is that Zell has made his fortune because of his ability to analyze risk and manage substantial debt.  The fact is that when Sam Zell talks, people listen.

Sam Zell is a win for Chicago Cubs baseball if he keeps ownership of the team.  It doesn’t appear that he’s leaning in that direction, but if it happens, Cubs fans can rest assured that a World Series championship will happen.