Financial Crunch
Houston Astros confront tough decisions as revenue takes a hit
Dec 19, 2023, 2:43 pm
Teams are reportedly calling about Framber Valdez and his availability. Composite Getty Image.
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.
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The 2025 season hasn't gone according to script for the Houston Astros. Injuries, slumps, and a retooled roster have left fans asking whether this version of the Astros is underwhelming—or if, given all the turmoil, they might actually be overachieving.
When Houston dealt Kyle Tucker, a franchise cornerstone, the move raised eyebrows. Tucker was a consistent producer and an anchor in right field. In return, the Astros received infielder Isaac Paredes, pitcher Hayden Wesneski, and third baseman now outfielder Cam Smith—players who didn’t bring the same star power but offered versatility and upside.
Paredes has delivered as advertised. He’s brought steady production at the plate and the ability to play a solid third base. While he may not be with the team beyond 2027 if the front office sticks to its recent pattern of letting players walk in free agency, his presence right now is stabilizing an otherwise inconsistent lineup.
Then there’s Cam Smith, who might be the real key to this deal. After a slow start and questions about whether he or Zach Dezenzo was the better option in right field, Smith has surged. Over the past 30 days, he’s hit north of .300 and shown signs of becoming a long-term fixture. The biggest question now is positional: Is he Houston’s future in right field, or could he eventually slide over to third base if/when Paredes departs? That decision will ripple through future roster planning and could define how this trade is remembered.
In the meantime, however, he’s shown flashes of being a quality everyday player. But it’s not uncommon for young hitters to take a step back after an initial surge. The Astros need him to keep proving it, but the potential is unmistakable.
Underwhelming or overachieving?
Elsewhere on the roster, the results are mixed. Players like Jake Meyers and Victor Caratini, who came into the season with modest expectations, have performed admirably. Meanwhile, stars like José Altuve, Christian Walker, and Yainer Díaz have underperformed, leaving the offensive output uneven. Add in the extended absence of Yordan Álvarez and the loss of three-fifths of the starting rotation, and it's fair to say Houston has had more than its share of adversity.
King of the hill
One area where the Astros have arguably found a diamond in the rough is Bryan King. With a 1.52 ERA in 2025, King has passed the eye test as a potential long-term solution in high-leverage relief situations. He’s been more than capable, building on a solid 2.39 ERA in 2024. His performance has solidified his place in the bullpen, and he’s taken on ownership of his role. However, it’s important for the Astros to temper expectations, especially after the lessons learned from the Rafael Montero signing. King looks like the real deal, but he still has a ways to go before being considered a true elite option out of the 'pen.
What should we make of the Alex Bregman quad injury?
Bregman’s injury doesn’t really change the conversation around whether the Astros should have extended him. If anything, it highlights the complexity of roster decisions. Houston could’ve kept Bregman, shifted Paredes to first base, and potentially avoided spending big on Christian Walker. But injuries are part of the game—Yordan Álvarez has missed nearly half the season, and no one’s suggesting the Astros should regret signing him. Kyle Tucker missed significant time last year, too, and he’s about to land a massive contract. Players get hurt. That’s baseball.
Moving forward
While the Astros have struggled with injuries and inconsistent performances, they have managed to remain competitive—perhaps even overachieving given the circumstances. The team's depth, the surprising performances from certain players, and the emergence of promising new talent have allowed them to hold their ground, currently possessing a Wild Card spot in the AL if the season were to end today.
There's so much more to discuss! Don't miss the video below as we examine the topics above and much, much more!
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