I think Crane knows he will need the Rockets down the line and he doesn't want to totally torch that relationship. This reeks of desperation on Crane's part.
Drayton already spent that money on Baylor's stadium. He won't give Crane a dime. Drayton may be many things, but stupid isn't one of them. I'll be shocked if the allegations prove true. The next shoe to drop could be a minority owner coming after Crane for promised revenues that he couldn't deliever.
Joe Dirt and Jim Crane have the same excuse for making a mess of things. <iframe width="420" height="315" src="//www.youtube.com/embed/UXfEDkoy0Y4" frameborder="0" allowfullscreen></iframe>
That's the carrot they got for initially agreeing to the Zone 1 rate. But what's the carrot for (allegedly) helping McLane to perpetuate a fraud on Crane by lying about what they knew/thought the market rate would be? In the end, this is going to be an evidentiary issue-- What exactly was said by McLane/Comcast and what exactly did they know? Can Crane prove any of this? It possible that these guys did know that the Comcast Zone 1 rate was way above market and specifically said to Crane that they believe it was reasonable market rate. But the degree of specificity and certainty of these statements and belief/knowledge would have to be pretty high-- and it would be unusual in this kind of transactions for such an event to occur. Also, from the Universal/NBC side: Seems that the upside of helping McLane to perpetuate a fraud is just not high enough for them to engage in it. These guys are in the RSN business (and of course other lines of business) all over the country, why risk your reputation by screwing one business partner in one market when you are not even directly getting a cut of the purchase price? Besides, Crane alleges that he learned the truth about the "secret Zone 1" deal in October 2012 at a meeting with Comcast/NBC and the Rockets. If Comcast/NBC was trying to defraud Crane, why would they admit to the fraudulent act to Crane?
I'd have to go back and read the petition again. I'm assuming, barring some agreement otherwise, I'll have at least 18 months to do that
<blockquote class="twitter-tweet" lang="en"><p>"I wish we were here on other issues, like signing free agents or something," Crane said.</p>— Jose de Jesus Ortiz (@OrtizKicks) <a href="https://twitter.com/OrtizKicks/statuses/403960997578158080">November 22, 2013</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> Spoiler <blockquote class="twitter-tweet" lang="en"><p>Crane says: "We're stunned and extremely disappoint by our partners during this process."</p>— Brian McTaggart (@brianmctaggart) <a href="https://twitter.com/brianmctaggart/statuses/403961220505427968">November 22, 2013</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <blockquote class="twitter-tweet" lang="en"><p>"We want to once again remind our fans and our goals and reiterate that the plans are coming along well," Crane said.</p>— Jose de Jesus Ortiz (@OrtizKicks) <a href="https://twitter.com/OrtizKicks/statuses/403961247550300160">November 22, 2013</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <blockquote class="twitter-tweet" lang="en"><p>"We had the lowest ranked farm system in 2011 and now we're regarded as one of the best in baseball," Crane said.</p>— Jose de Jesus Ortiz (@OrtizKicks) <a href="https://twitter.com/OrtizKicks/statuses/403961362784608256">November 22, 2013</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <blockquote class="twitter-tweet" lang="en"><p>"We did not buy a team to field a low payroll," Crane said.</p>— Jose de Jesus Ortiz (@OrtizKicks) <a href="https://twitter.com/OrtizKicks/statuses/403961648873873408">November 22, 2013</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <blockquote class="twitter-tweet" lang="en"><p>Jim Crane: "Our TV deal has been a bust to date."</p>— Brian McTaggart (@brianmctaggart) <a href="https://twitter.com/brianmctaggart/statuses/403961793074057216">November 22, 2013</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <blockquote class="twitter-tweet" lang="en"><p>"We want to make sure that the Astros are treated fairly moving forward," Crane said.</p>— Jose de Jesus Ortiz (@OrtizKicks) <a href="https://twitter.com/OrtizKicks/statuses/403962003770716160">November 22, 2013</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script>
Get 'em Jimmy! <blockquote class="twitter-tweet" lang="en"><p>"Misrepresentations were made about the RSN that may damage the Astros. ... We will not allow this," Crane said.</p>— Jose de Jesus Ortiz (@OrtizKicks) <a href="https://twitter.com/OrtizKicks/statuses/403962171337355265">November 22, 2013</a></blockquote> Spoiler <blockquote class="twitter-tweet" lang="en"><p>Astros owner Jim Crane on lawsuit: "This is something we didn’t do lightly."</p>— Brian McTaggart (@brianmctaggart) <a href="https://twitter.com/brianmctaggart/statuses/403962264643858432">November 22, 2013</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <blockquote class="twitter-tweet" lang="en"><p>Crane just mentioned McLane, Leslie (Alexander) and Comcast, accusing them of misrepresenting rates.</p>— Jose de Jesus Ortiz (@OrtizKicks) <a href="https://twitter.com/OrtizKicks/statuses/403962342490132481">November 22, 2013</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <blockquote class="twitter-tweet" lang="en"><p>"They didn't miss a little bit. They weren't even close," he said.</p>— Jose de Jesus Ortiz (@OrtizKicks) <a href="https://twitter.com/OrtizKicks/statuses/403962398848978944">November 22, 2013</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <blockquote class="twitter-tweet" lang="en"><p>"What they didn't tell was that in 2010 that Leslie and Drayton cut a deal with Comcast," on favored nation status for COMCAST.</p>— Jose de Jesus Ortiz (@OrtizKicks) <a href="https://twitter.com/OrtizKicks/statuses/403962735018266624">November 22, 2013</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <blockquote class="twitter-tweet" lang="en"><p>"They've hurt our fans and hurt the city of Houston," Crane said.</p>— Jose de Jesus Ortiz (@OrtizKicks) <a href="https://twitter.com/OrtizKicks/statuses/403962866652299264">November 22, 2013</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <blockquote class="twitter-tweet" lang="en"><p>"I did not buy this team to havve a payroll and be mediocre," Crane said. "We bought this team to be champions."</p>— Jose de Jesus Ortiz (@OrtizKicks) <a href="https://twitter.com/OrtizKicks/statuses/403962991978110977">November 22, 2013</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <blockquote class="twitter-tweet" lang="en"><p>David Barron just asked Crane why he didn't include Alexander and Rockets.</p>— Jose de Jesus Ortiz (@OrtizKicks) <a href="https://twitter.com/OrtizKicks/statuses/403963134987091968">November 22, 2013</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <blockquote class="twitter-tweet" lang="en"><p>Kibbe makes clear that the Astros haven't ruled out suing Alexander and Rockets.</p>— Jose de Jesus Ortiz (@OrtizKicks) <a href="https://twitter.com/OrtizKicks/statuses/403963322778677248">November 22, 2013</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <blockquote class="twitter-tweet" lang="en"><p>"Certainly we're not looking for the fans' sympathy. What we want is our games on TV," Crane says.</p>— Jose de Jesus Ortiz (@OrtizKicks) <a href="https://twitter.com/OrtizKicks/statuses/403963768557682688">November 22, 2013</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script>
if this is true..... <blockquote class="twitter-tweet" lang="en"><p>"What they didn't tell was that in 2010 that Leslie and Drayton cut a deal with Comcast," on favored nation status for COMCAST.</p>— Jose de Jesus Ortiz (@OrtizKicks) <a href="https://twitter.com/OrtizKicks/statuses/403962735018266624">November 22, 2013</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> if they seriously weren't told this by either: 1. McLane before the purchase; or 2. The Rockets and/or Comcast, their partners after the purchase, who owed them fiduciary duties to be forthright... then wow.
<blockquote class="twitter-tweet" lang="en"><p><a href="https://twitter.com/search?q=%23Astros&src=hash">#Astros</a> Jim Crane we do have some traction with some other parties...</p>— Josh (JR) Reese (@JoshReeseRadio) <a href="https://twitter.com/JoshReeseRadio/statuses/403963581093249024">November 22, 2013</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script>
<blockquote class="twitter-tweet" lang="en"><p>Crane: "We do not have buyer’s remorse. We're very happy we own the team and will continue to be happy."</p>— Brian McTaggart (@brianmctaggart) <a href="https://twitter.com/brianmctaggart/statuses/403965516449976320">November 22, 2013</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> Spoiler <blockquote class="twitter-tweet" lang="en"><p>"I literally looked at five sets of books," said Crane when addressing whether he did his due diligence.</p>— Jose de Jesus Ortiz (@OrtizKicks) <a href="https://twitter.com/OrtizKicks/statuses/403963880247799808">November 22, 2013</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <blockquote class="twitter-tweet" lang="en"><p>"Nobody wants to read this in the sports section. This is not a dispute we want to pull the fans in," Crane said.</p>— Jose de Jesus Ortiz (@OrtizKicks) <a href="https://twitter.com/OrtizKicks/statuses/403964021495169024">November 22, 2013</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <blockquote class="twitter-tweet" lang="en"><p>"When you got their executives - and the business plans did line up with other cities. it's not like this was lined with Mars," Crane said.</p>— Jose de Jesus Ortiz (@OrtizKicks) <a href="https://twitter.com/OrtizKicks/statuses/403964185605713920">November 22, 2013</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <blockquote class="twitter-tweet" lang="en"><p><a href="https://twitter.com/search?q=%23Astros&src=hash">#Astros</a> Jim Crane.... I take full responsibility for it</p>— Josh (JR) Reese (@JoshReeseRadio) <a href="https://twitter.com/JoshReeseRadio/statuses/403964250390945792">November 22, 2013</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <blockquote class="twitter-tweet" lang="en"><p>Crane says nobody has been fired because of this failure on Astros side. "You would have to fire me and I'm sticking around."</p>— Jose de Jesus Ortiz (@OrtizKicks) <a href="https://twitter.com/OrtizKicks/statuses/403964859106091008">November 22, 2013</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <blockquote class="twitter-tweet" lang="en"><p>"We're going to work very hard to get the games on (TV) at the first of the year," he said. I assume he means opening day.</p>— Jose de Jesus Ortiz (@OrtizKicks) <a href="https://twitter.com/OrtizKicks/statuses/403964970070585344">November 22, 2013</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script><blockquote class="twitter-tweet" lang="en"><p>"We need to remodel this business. They weren't prepared to do that," said Crane, who reiterates his belief CSN is a losing business.</p>— Jose de Jesus Ortiz (@OrtizKicks) <a href="https://twitter.com/OrtizKicks/statuses/403964669645185024">November 22, 2013</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <blockquote class="twitter-tweet" lang="en"><p>"We've set a considerable amount of money to spend on free agency," Crane said.</p>— Jose de Jesus Ortiz (@OrtizKicks) <a href="https://twitter.com/OrtizKicks/statuses/403965096914718720">November 22, 2013</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <blockquote class="twitter-tweet" lang="en"><p>Jim Crane:"We set a considerable amount of money aside to spend on free agency if Jeff [Luhnow] can spend it effectively." Plan not changed.</p>— Brian McTaggart (@brianmctaggart) <a href="https://twitter.com/brianmctaggart/statuses/403965337604849664">November 22, 2013</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <blockquote class="twitter-tweet" lang="en"><p>"This is a $150 million. I figure they (Comcast) can figure out this very quickly if they wanted to," Crane said.</p>— Jose de Jesus Ortiz (@OrtizKicks) <a href="https://twitter.com/OrtizKicks/statuses/403965590106165250">November 22, 2013</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <blockquote class="twitter-tweet" lang="en"><p>"From a business point of view, you never want to litigate," Crane said.</p>— Jose de Jesus Ortiz (@OrtizKicks) <a href="https://twitter.com/OrtizKicks/statuses/403965652563533824">November 22, 2013</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <blockquote class="twitter-tweet" lang="en"><p>"Sometimes it takes a little force to get everybody to the table," Crane said.</p>— Jose de Jesus Ortiz (@OrtizKicks) <a href="https://twitter.com/OrtizKicks/statuses/403965715738132480">November 22, 2013</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <blockquote class="twitter-tweet" lang="en"><p>"Yeah," Crane said when I asked him if he's still committed to raising payroll this season.</p>— Jose de Jesus Ortiz (@OrtizKicks) <a href="https://twitter.com/OrtizKicks/statuses/403966023218364416">November 22, 2013</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <blockquote class="twitter-tweet" lang="en"><p>"This was the year that we had enough depth in the team where we can really add some players ... and not alter what we have in the pipeline.</p>— Jose de Jesus Ortiz (@OrtizKicks) <a href="https://twitter.com/OrtizKicks/statuses/403966152872689664">November 22, 2013</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <blockquote class="twitter-tweet" lang="en"><p><a href="https://twitter.com/search?q=%23Astros&src=hash">#Astros</a> Jim Crane... We want a model like the Cardinals and the Braves</p>— Josh (JR) Reese (@JoshReeseRadio) <a href="https://twitter.com/JoshReeseRadio/statuses/403966211228049408">November 22, 2013</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script>
This is it right here: <blockquote class="twitter-tweet" lang="en"><p>"This is a $150 million. I figure they (Comcast) can figure out this very quickly if they wanted to," Crane said.</p>— Jose de Jesus Ortiz (@OrtizKicks) <a href="https://twitter.com/OrtizKicks/statuses/403965590106165250">November 22, 2013</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> That's a rounding error for Comcast. That's why this gets resolved. It takes litigation to do it...but that's the deal right there. EDIT: I promise I'm not writing his speech today Ha! <blockquote class="twitter-tweet" lang="en"><p>"Sometimes it takes a little force to get everybody to the table," Crane said.</p>— Jose de Jesus Ortiz (@OrtizKicks) <a href="https://twitter.com/OrtizKicks/statuses/403965715738132480">November 22, 2013</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script>
<blockquote class="twitter-tweet" lang="en"><p>"What this TV deal originally deal was put us in the medium income family," he said.</p>— Jose de Jesus Ortiz (@OrtizKicks) <a href="https://twitter.com/OrtizKicks/statuses/403966296854773761">November 22, 2013</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <blockquote class="twitter-tweet" lang="en"><p>"We kept MLB aware of everything we've done before we've done it," Crane said.</p>— Jose de Jesus Ortiz (@OrtizKicks) <a href="https://twitter.com/OrtizKicks/statuses/403966388638728192">November 22, 2013</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <blockquote class="twitter-tweet" lang="en"><p>Giles Kibbe says lawsuit can be amended to add more defendants, which could include the Rockets.</p>— Brian McTaggart (@brianmctaggart) <a href="https://twitter.com/brianmctaggart/statuses/403966476085772288">November 22, 2013</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <blockquote class="twitter-tweet" lang="en"><p>"This was probably news to (McLane) yesterday," Crane said. He says he has no ill will toward McLane.</p>— Jose de Jesus Ortiz (@OrtizKicks) <a href="https://twitter.com/OrtizKicks/statuses/403967374186917888">November 22, 2013</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <blockquote class="twitter-tweet" lang="en"><p>Crane says he's still working hard on behalf of the Astros, Rockets and CSN to get distribution deals.</p>— Jose de Jesus Ortiz (@OrtizKicks) <a href="https://twitter.com/OrtizKicks/statuses/403967714047164416">November 22, 2013</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <blockquote class="twitter-tweet" lang="en"><p>"That's a strong word," Crane said when asked if he was swindled.</p>— Jose de Jesus Ortiz (@OrtizKicks) <a href="https://twitter.com/OrtizKicks/statuses/403967853818155008">November 22, 2013</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <blockquote class="twitter-tweet" lang="en"><p>"He had a back end if performed properly," Crane said when asked if McLane would get $3 million if CSN deal worked out.</p>— Jose de Jesus Ortiz (@OrtizKicks) <a href="https://twitter.com/OrtizKicks/statuses/403968433693290496">November 22, 2013</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script>
It was one of those verbal agreements that companies always strike when it comes to revenue because if it were in a contract surely Crane's evaluation team would have read that.
he said he reviewed 5 sets of books. It wasn't there and it wasn't disclosed. We've been hearing about the "most favored" status for Comcast since this conflict all began in the bankruptcy. That's not really new. Not sure anyone is denying it. If it was included in due diligence documents provided by McLane, that would be super easy for McLane to prove.
Did the Rockets say anything to Crane to induce him to purchase the Astros assets at the price that he did? I just don't see why they would do this. McLane isn't sharing the money with Les. Seems like this is just a leverage play, asserting a plausible claim to try and get some money out of Comcast, Leslie and McLane. This kind of stuff happens sometimes when a business goes insolvent-- particularly with bond holders in leveraged buyout situations when a company goes bust, they'd argue that the seller/buyer/lender of the LBO transaction knew that the numbers don't work and would cause the company to go bust and they lied in getting the transaction done. Not a perfect analogy but kind of similar, I think. The question is did they know the numbers could not have worked out back when the deal was concocted or did the business simply not work out? One more thing: Crane had to at least know of the existence of the MFN clause in the contract. This has to alert him to the possibility that the "Zone 1 rate" for Comcast may end up being higher than what the other providers are willing to pay.
If they failed to inform him of deals cut between the partners before him...after they were partners...that smells a bit like breach of fiduciary duty among partners to me. This it. For those looking as to what this all is...this is it. If Crane can prove Comcast and McLane KNEW that those numbers were unattainable...and they both told him otherwise in the due diligence phase of his purchase of the Astros..then that's a problem. If they really didn't know..and Comcast really was surprised like they say they were...then Crane has nothing with this case. The truth is...none of us know the answer to that for sure. None of us know what Comcast knew back then about this. What they knew from initial market testing before Crane bought the Astros. Unless it's not in "the contract." We're hearing about this being cut as a side deal. That's what the allegation is.
