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  • Uh-Oh! What if the Cleveland Guardians Get Competent Ownership?


    Sherry Cerny

    News broke last month that the Cleveland Guardians are close to selling 35% of their ownership to David Blitzer.The potential for a corporate investor could shake things up, making the newly-minted Guardians a force to be reckoned with in the near future.

    Image courtesy of David Richard, USA TODAY Sports

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    A LOOK BACK AT THE CLEVELAND OWNERSHIP
    Cleveland had a dynamic decade. Playing them was always a daunting task. They have been blessed with outstanding pitchers such as Shane Bieber, Corey Kluber, Trevor Bauer, and Mike Clevinger. The hitting and defense of players like Francisco Lindor, Jose Ramirez, and Carlos Santana moved them swiftly through the playoffs before losing the 2016 World Series to the Cubs. 

    Terry Francona is still at the helm, and there is still solid pitching and Jose Ramirez, but their payroll has been reduced significantly due to several big trades. The Cleveland ball club has not had payrolls this low for over a decade. Their payroll in 2018 was $134 million, per Cot’s. . A year ago, it was just $49 million. 

    Whether those cuts in payroll are because the Dolan family is tired of investing money, or whether they are trying to make the organization more attractive to investors. It might not matter. Either way, a new investment in the franchise could benefit the fans. 

    And the fans could use a break. One of the biggest examples of payroll cutting was the trade of fan-favorite, Francisco Lindor, to the Mets before the 2021 season. While fans in Cleveland were not surprised, it knocked the wind out of the community. 

    USHERING IN A NEW ERA
    With all the decisions the Dolan family has made, this deal with David Blitzer to become a minority owner seems to be a good one for the Cleveland fans. While he has not invested in baseball yet, there was a whisper of interest regarding buying the Mets before Steve Cohen purchased them.

    David Blitzer of HBSE is rumored to have acquired a significant stake in the Guardians; some estimate 35%. It was known that co-owner John Sherman needed to sell his 20% because he took partial ownership of another team, the Kansas City Royals, in 2019. But Sportico is reporting that the deal includes another 15%, and includes a path to majority ownership. 

    HBSE is not new to investing in professional teams. David Blitzer seems to have made it his life's work to take over teams that seem to be falling apart or fading quickly. In fact, he took hold of the 76er's (2011) and the New Jersey Devils (2013), breathing new life into their franchises. 

    Neither team has won a title since their acquisition. Still, both teams have remained intensely competitive because Blitzer realizes the value of good players and does not have any issues paying for them. When HBSE took over, the 76ers were in a meager state. During Sam Hinkie's three seasons as General Manager of the 76ers, he was able to acquire strong players, Joel Embiid, Ben Simmons, and Dario Saric, that led them to their first playoff run since Blitzer took over. 

    Blitzer's willingness to sink cash into big names (and more importantly, big talent) creates fan bases that have just as much excitement about their teams as the players. The 76ers are relevant again, and players want to play there because they know they will get paid and play to win. 

    BRING BACK THE COMPETITIVE EDGE
    Let's admit it. Watching the White-Sox win, the division in 2021 told us a lot about the teams in the Central Division. Cleveland's competitiveness has disappeared along with their roster. But Cleveland has a number of hidden strengths.

    The Guardians are still a competitive team. In 2021, the Guardians won 80 games last year, despite the fact that  most of the veterans had either been traded or spent time on the Injured List. If Blitzer has a say in player acquisition and retention, he could create a dangerous lineup, comparable to what he did with the 76ers and the Devils. A good veteran core, along with the Guardians' coaching staff, could make a team that could stay strong for years. 

    Cleveland has a solid farm system. MLB.com ranked Cleveland as the #13 farm system in MLB this last August, specifically calling out the amount of talent they have age 21 years old and younger. That is rare for an organization nearing the end of their competitive window. It either gives them a head start if they decide to do a full rebuild, or trade assets if they decide to reload.

    Cleveland could use a culture change. New ownership for the Guardians could bring about a huge culture change. Blitzer's staff is known for shaking things up from coaching to players. The teams Blitzer has invested in ended up producing large fan bases, strong player core, and culture for corporate ownership. The fan base has slowly dwindled over the years as fans lost faith in the front office and, subsequently, the team. 

    If there is one thing about the Ohio fan base, they are loyal, and what teams put into them, they give back ten-fold. The Guardians just got a new name and are proposing a $435 million stadium renovation that would include a  new lease for fifteen years. With a complete stadium renovation and re-branding, this is a huge opportunity to get fans back in the seats at Progressive Field. Some empty seats were due to the pandemic, the team ranked 21st this past season in attendance. 

    Corporate ownership, or investment, can have its perks when it comes to ownership: more money, more growth opportunities, and an overall better atmosphere. Given their struggles with payroll, and several other hidden advantages that the Guardians have, bringing Blitzer and his investment team into Cleveland’s ownership group could bring resources and stability the franchise and their fan base has craved. It could be very good news for the Guardians. And bad news for the Twins.

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    Sounds like corporate ownership is a panacea. I wonder if the $450 million tax-payer handout has anything to do with corporate interest.

    Probably be easier to improve team morale just by changing the team name to something other than "Guardians". I bet that will be the first thing the miracle worker Blitzer will change. The Cleveland Blitz perhaps?

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    I think the dump in payroll reflects the Guardians entering a tank/rebuild cycle which is employed by all small market teams and most mid market teams in some capacity.

    The White Sox and Tigers are going to own the division for probably 2-3 years at least with the Royals next, the Guardians and Twins at the bottom if I had to wager right now.

    A change in ownership in Cleveland would likely accelerate their rebuild and make them a better team on average, but Cleveland is still small market so I don't see a fundamental change coming. Besides, small market Cleveland and Kansas City have already had opening day payrolls higher than the mid-market Twins have ever seen. Maybe the competent ownership change that's necessary is in Minnesota, not Ohio.

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    20 hours ago, bean5302 said:

    I think the dump in payroll reflects the Guardians entering a tank/rebuild cycle which is employed by all small market teams and most mid market teams in some capacity.

    The White Sox and Tigers are going to own the division for probably 2-3 years at least with the Royals next, the Guardians and Twins at the bottom if I had to wager right now.

    A change in ownership in Cleveland would likely accelerate their rebuild and make them a better team on average, but Cleveland is still small market so I don't see a fundamental change coming. Besides, small market Cleveland and Kansas City have already had opening day payrolls higher than the mid-market Twins have ever seen. Maybe the competent ownership change that's necessary is in Minnesota, not Ohio.

    Cleveland and the Twin Cities are pretty comparable markets. The Cleveland market area (which includes Canton and Akron) has about 3.6M people; the Twin Cities market area is about 3.7M. Both are mid-sized markets. The advantage the Twins have is MN has no other teams and the closest other franchises are KC/MKE/Chicago. Cleveland has to compete with Cincinnati in their own state. But there are a lot more people in OH to pull from as well... 

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    10 hours ago, jmlease1 said:

    Cleveland and the Twin Cities are pretty comparable markets. The Cleveland market area (which includes Canton and Akron) has about 3.6M people; the Twin Cities market area is about 3.7M. Both are mid-sized markets. The advantage the Twins have is MN has no other teams and the closest other franchises are KC/MKE/Chicago. Cleveland has to compete with Cincinnati in their own state. But there are a lot more people in OH to pull from as well... 

    Baseball markets sort of work on general metro areas. The immediate city and surrounding 30 minute area has the Twins with a 25%+ population advantage over Cleveland. Having that immediate area advantage is important for attendance and contributes to game day revenues. There's also the median household income. MSP = $84k. Greater Cleveland = $57k. 

    https://community.fangraphs.com/the-importance-of-the-30-minute-population-radius-on-mlb-attendance/

    Cincinatti is further from Cleveland than Duluth is from Minneapolis, and if you expand the metros out within reason, Minneapolis/St. Paul generally owns a significant advantage in population density.

    It's tough for me to consider the markets super comparable. Though if you expand things out far enough, Ohio is a much bigger state than Minnesota overall. Even so, in the northwest of the state, Toledo, OH is Detroit Tigers area and Pittsburgh starts to get as close to Cleveland as suburbs east and south of Canton. So there are 4 baseball teams Ohio residents might consider their "home" team. Cleveland Guardians, Detroit Tigers, Cincinatti Reds, Pittsburgh Pirates.

     

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