Without a big TV deal in place to keep revenue flowing, Cleveland Indians owner Paul Dolan is trying to lure investors by offering minority stakes for the franchise. Unfortunately, Dolan’s efforts may well be futile.
According to the New York Post, Dolan has hired a boutique investment bank, Allen & Co., to “shop roughly 30 percent of the team.”
“He doesn’t have deep enough pockets and is looking to a new investor to ramp up spending on salaries, sources said. The club’s payroll of $76 million ranks 26th among Major League Baseball’s 30 teams,” the report states.
Being a small-market team without a major television contract hasn’t been kind to Dolan’s bottom line, and he’s desperate to find a way to turn things around. Things don’t look promising on this front, however, as potential investors understand the return for their financial commitment isn’t likely to be profitable.
Furthermore, it appears Dolan is over-valuing his franchise.
“Dolan believes the franchise is worth around $800 million, which is rich considering the team is just breaking even . . . Without a big TV contract, sports industry sources say, the Indians are worth about $600 million.”
Likely, Dolan’s latest ploy to prop up his flagging franchise will fall flat, meaning another solution is in order.
Fans are apparently ready for Dolan to simply sell the team, since he won’t relinquish operating control. It’s understandable, given his financial status at this time, that he isn’t keen on spending big dollars to bring in top talent, but fans grow weary of mediocrity.
When he took over for previous owner Richard Jacob, the Indians featured one of the highest payrolls in MLB and sold out most of their games, per the report. Nowadays, fans have grown disinterested, leading to lower ticket sales, which in turn has produced the current problem at hand.