Financial Crunch
Houston Astros confront tough decisions as revenue takes a hit
Dec 19, 2023, 2:43 pm
Financial Crunch
So why is a baseball team in America’s fourth-largest city, with the local economy booming, that plays in a clean, comfortable stadium with lots of parking, that charges the 5th-highest prices for tickets, beer and hot dogs, the value of the team has nearly quadrupled, and is riding a dynasty of success on the field … singing the blues over money problems and the general manager was practically wearing a barrel and suspenders at baseball’s winter meetings?
It all comes down to local TV revenue, where the Astros are closer to the small market Brewers and Marlins than they are to the Yankees and Dodgers. Because the Astros had to create a new TV network – Space City Home Network — in partnership with the Houston Rockets due to the demise of AT&T SportsNet SW, the team’s broadcast revenue is expected to drop by tens of millions of dollars. Make that many tens of millions of dollars.
With revenue taking a hit like that, something has to give, and it will be the Astros payroll. That’s why the Astros have all but admitted they will say goodbye to Alex Bregman when his contract expires at the end of the next season, and No. 2 starter Framber Valdez could reportedly be available in a trade.
The Astros payroll currently sits at just above the MLB luxury tax threshold of $273 million, with Kyle Tucker’s big-ticket future with the Astros looming. The Astros have busted the luxury tax paywall only once since Jim Crane bought the Astros in 2011.
According to Forbes, the value of the Astros stands at $2.25 billion, almost four times what Crane paid for the team. Big Macs and homes in West University Place haven’t gone up that much.
We know the numbers by heart: since 2017 the Astros have won six American League West titles, seven ALCS appearances, four World Series appearances, two championships. The Astros drew more than 3 million fans paying premium prices to root, root, root for the home team.
I used to tell my Little League teams, you guys are so lucky to be born when you did. You get to watch an incredibly talented baseball team with great players who do nothing except win the past seven seasons.
There are less fortunate kids who live in cities where the team plays like Bizarro Astros. Imagine if you had to watch the Kansas City Royals or Detroit Tigers those same seven years. Both are riding seven-year streaks of losing records. And their best players get the hell out of Dodge the minute they can.
Yes, the Astros have lost a bundle of top stars in recent years without making a sincere effort to keep them. Carlos Correa, Justin Verlander, Gerrit Cole, George Springer, Charlie Morton and others left Houston for greener – as in money – pastures. But somehow the Astros found new stars to replace them and kept winning.
We still have Jose Altuve, Tucker, Verlander, Valdez, Bregman, Pena, Pressly, McCormick and more. We, the Astros, should be all right for 2024. To infinity and beyond? That’s another question.
One prediction guaranteed to come true next season: if you attend an Astros game and get a hankering for a beer and a dog … check your credit card limit first.
Nolan Arenado homered and Brendan Donovan went 4 for 4, helping Sonny Gray and the St. Louis Cardinals beat the Houston Astros 8-3 on Monday night.
Arenado also doubled twice and scored two runs in the opener of a three-game series. Donovan extended his hitting streak to 10 games.
Gray (3-0) pitched seven scoreless innings. He allowed three hits, struck out four and walked one.
The Cardinals have won Gray's last eight home starts dating to last season.
Astros left-hander Framber Valdez (1-2) was tagged for seven runs — six earned — in four-plus innings. Five of the 10 hits he allowed were doubles.
Arenado hit a solo drive off Luis Contreras in the eighth. It was his second homer of the season.
The Cardinals broke it open with three runs in the fourth and three more in the fifth.
Pedro Pagés hit a two-run double to make it 3-0 in the fourth. Nolan Gorman's sacrifice fly extended the lead to 7-0 in the fifth.
Donovan scored twice and drove in a run. He is batting an NL-high .391.
Houston's Jeremy Peña hit a three-run homer off Roddery Muñoz with two outs in the ninth.
Arenado drove in the first run in the fifth. He fouled off four straight offerings in a 10-pitch at-bat before ripping an RBI double to left.
Gray set the tone when he retired Jose Altuve, Isaac Paredes and Yordan Alvarez in order in the first inning. The Astros’ only hit off Gray through five was catcher Yainer Diaz’s infield single in the second.
Astros right-hander Hunter Brown (1-1, 2.00 ERA) starts on Tuesday night. Right-hander Erick Fedde (1-1, 4.50 ERA) makes his fourth start for the Cardinals.