Alderman Meyer posted the details of the agreement that is being discussed with the new potential owners of the Swing over at SoLo. Hopefully this wasn't confidential information, but I guess it certainly isn't anymore...
I'll summarize it in a couple words: Its crap.
Here's the important section:
"...Our anticipated proposal will have a net acquisition cost to RBI of approximately $7 million... While we are willing to pay top market for the franchise and assets, we cannot layer on top of that the nearly $4.5 million in lease obligations presently imposed by the agreements in place between the Club and the City. So, as we discussed 10 days ago, we cannot overpay 7th Inning Stretch for the assets and franchise it currently holds, nor can we commit to the City to retire a heavy debt burden going forward.
Instead, we will propose that the all existing debt be retired, save for $1 million that would be restructured as payments going forward under a new lease.
Basically the reason the team can't make money is because the city is mean and making them actually pay for having a shiny new stadium. I'm sure that's true, but that was part of the deal they signed up for.
The question I have, is whether the debt is truly retired, and is entirely dumped on the taxpayers, or whether Kevin would have to pay it off out of the 7 mil that he'd get from the new owners. He had better have to.
If Kevin Krause ends up sitting around with millions of dollars in his bank account while the city eats the renovation costs, I might just stop liking Mr. Malin. This is Kevin's failure, not the city's, so until he moves into a $75,000 (or less) house and has no savings, I'd say he still owes the city money.
My initial reaction is that the city should turn this deal down, unless the renovation costs are paid for out of the $7 million price tag. This is a bad deal for Kevin, as he wouldn't get the money back he put into the team, but that's what happens when you fail at something.
"Baseball was made for kids, and grown-ups only screw it up." ~Bob Lemon