Market Power

Musings by an academic economist on the power of markets and the power over markets.

Monday, December 13, 2004

D-backs and G-backs

The Arizona Diamondbacks, fresh off a 51-111 2004 campaign, are wheeling and dealing this year. It doesn't look like Richie Sexson will be back with the Snakes (there's an ex-post bad investment!), but Arizona has signed 3B Troy Glaus (who's missed most of last year and a good portion of the 2003 season with a shoulder injury) and pitcher Russ Ortiz (how will he perform away from Leo Mazzone?). Recent news reports say the D-backs are close to signing Craig (do you like the way I stand in the box?) Counsell and Royce (Marley) Clayton. They are also reportedly going after David Dellucci.

How are they going to afford all these players? They are going into debt. See here for details. A quote from the article:

"The funding comes in the form of $260 million in capital over a 10-year period - $160 million raised from the team's four general partners - Kendrick, Dale Jensen, Mike Chipman and Jeffrey Royer - and $100 million from community investors."

At least its private financing!