Update: Keith Olbermann did a tweet saying he plans to address the Forbes-Astros stories tonight on his show.
Already locked in to Worsts tonight RT @Sherman_Report To @KeithOlbermann and others who reported original Forbes story on Astros. Check out rebuttal on Forbes today.
Also Dan Alexander issued a rebuttal to Maury Brown’s rebuttal.
Here’s the entire story.
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On Monday, Dan Alexander, listed as a contributor to Forbes, created major headlines by proclaiming that the Houston Astros are “the most profitable team in baseball history.”
Alexander cited the Astros invisible payroll and a big new local TV deal.
The Astros are on pace to rake in an estimated $99 million in operating income (earnings before interest, taxes, depreciation and amortization) this season. That is nearly as much as the estimated operating income of the previous six World Series championship teams — combined.
Since it was Forbes, the assessment had to be right. Right? Despite strong denials by the Astros (what do you expect they’d say?), the story was reported as fact throughout the country. Keith Olbermann on his debut show even made Astros owner Jim Crane his first “Worst Person in The World of Sports.”
However, there is a problem. Maury Brown says it isn’t true.
And here’s the catch. Brown also is a contributor to Forbes.
Brown, founder of the Business of Sports Network and highly respected sports business writer, felt compelled to refute the original Forbes story. In an email to me this morning, he writes: “I wrote the editors and asked if there was a problem. (One of the editors) replied, ‘It’s my understanding contributors can take on other contributors. Let him run it.’ Speaks well of Forbes.”
So Brown did a post on Forbes that began this way:
Business is a difficult industry to cover, and more so with Major League Baseball. As a private industry, financial information is rarely—if ever—disclosed. So, it was with interest (and some shock) that I saw an article here on Forbes.com claiming the 2013 Houston Astros: Baseball’s Worst Team Is The Most Profitable In History.
There are few times that the need for an article refuting a Forbes colleague is in need of publishing, but this is one of those instances. Beyond statements from the Astros and club president Reid Ryan saying that the article was factually incorrect—something that could smack of protectionism—the fact is, the Astros are not the most profitable MLB club in history. As well, they are most assuredly not even the most profitable this year. In a case of ensuring that as the initial story weaves its way across the internet to other media, thus creating revisionist history, here are the reasons why the story is not only off-base, it has to be classified as grossly inaccurate.
Brown lays out his reasons, namely the Astros aren’t making nearly as much money off their TV rights deal, which essentially was the crux of the first Forbes piece.
Brown writes:
With start-up fees to get the regional sports network off the ground, the fledgling RSN is running at a loss. Not only do my sources in the broadcast industry say that cash calls for CSN Houston have already taken place, other reports speak to how difficult gaining carriage is, and will likely, continue to be. SNL Kagan, which Alexander quoted for the “most profitable, ever” story has said separately, “CSN Houston ‘has been a bust.’”
And there’s more.
Brown writes that he has been a critic of Crane, but not in this case.
I’m sure Brown’s rebuttal is getting considerable play today in Houston. But elsewhere in sports media, I doubt most people will delve heavily into the nuances of Brown’s report. They had their headlines on Monday, and have moved on.
However, at the very least, I hope Olbermann revisits the Astros story, given what Brown wrote. He should know. Olbermann also noted on his first show how much of what is reported about him isn’t true.
One thing we know for sure…while the Astros may not be making a 99 million dollar profit, they are probably making a considerable one.
MLB owners are an extremely smart group of people, you usually don’t become so wealthy you can own a sports team by accident.
If they were losing money, they would have gotten out of the business a long, long time ago.