Are the Boston Red Sox for sale? Fox Business says they are but owner John Henry claims the Red Sox are in no way being sold. What are the chances that the Red Sox will have a new owner some time in the near future? When you look at the economics of it there’s a good chance that Henry and co-owner Tom Werner will be unloading the franchise.
Capital Gains Tax
One reason that Henry may want to get rid of the Red Sox sooner than later has to do with the idea that the capital gains tax in the U.S. is bound to go up after the next presidential election. The federal government needs the cash and those who gain financially from a sale are bound to be asked to pay. Thus, selling now makes a lot of sense.
Henry and Liverpool
In 2010, Henry bought the Liverpool football team in the English Premier League. The Liverpool Reds cost Henry about $450 million and he has spent a lot of cash on talent with very little positive effect. Henry has been criticized on both sides of the pond for the manner in which he has spent money on the two teams. The fact of the matter is that the Liverpool-Boston soccer and baseball team combo is putting strain on Henry’s wallet and the costs associated with both need to be addressed.
However, the Red Sox owner may not be able to address each one effectively. Thus the sale of the Red Sox may help alleviate this financial strain.
What’s Best for the Red Sox?
What’s the best scenario for Boston? Considering how poorly the owners have performed in the past two years, I think a new quality owner is in order. It’s true that Henry and Werner have been instrumental in bringing two world championships to Boston and in making the team competitive. They are also responsible for the Red Sox becoming the laughingstock of the AL. Boston is one of the worst teams in the league.
Will It Happen?
Although Henry denies reports associated with selling the team, there’s a good chance that he will unload them. However if he decides to keep the Red Sox, then Henry must work hard to ensure the viability of the team. In order to do so, he needs to fire CEO and President Larry Lucchio, GM Ben Cherington and manager Bobby Valentine. There’s a lot of house cleaning that has to happen to make the Red Sox a real contender once again. And it needs to start at the top. New owners may help a lot especially if Henry and Werner expect to keep the status quo.