We missed this when it came out a week ago, but Bill Shaikin of the Los Angeles Times recently provided an update on the club’s ballpark and related business development efforts. The global pandemic has obviously introduced some new variables.
The Anaheim City Council agreed to bump back the deadline for owner Arte Moreno to commit fully to a previously agreed-upon deal involving the development of the land surrounding Angel Stadium. The team now has until the end of September to decide; the final call had been due by the end of June.
Under the deal, the Halos will also get to delay a $20MM deposit until the fall, though they’ll have to throw in another $10MM in deposit cash that hadn’t been due until 2023. It certainly seems as if the organization is hoping it’ll be drawing some revenue from the 2020 campaign before it has to act irrevocably.
At the moment, the broad stadium-related business effort is still moving forward. But the Angels are obviously cash-conscious. The club has, as anticipated, decided to institute furloughs. As Fabian Ardaya of The Athletic reports (subscription link), the Angels will begin sidelining certain employees beginning at the start of June.
Impacted employees will receive benefits through the end of the year and can receive grants from a $1MM fund set up by the team. It’s a bit of a curious arrangement at first glance, but perhaps the reasoning here is to allow those impacted to receive unemployment benefits while still also gathering some support from the organization. There’ll be an impact across the board on the team’s baseball operations, but Ardaya says the minor-league and player development staff will be hit hardest.
Other teams — and, especially, their employees — are no doubt evaluating this move with interest. The Halos obviously aren’t alone here, but it’s particularly notable to see a big-market club making cuts of this kind. The expectation remains that other organizations will make similar moves in the coming days, even as the league attempts to ramp back up towards a 2020 season.
alt2tab
Arte Moreno has a net worth of $3.3B. The monthly salary of the employees he’s cutting are worth 0.2% of his overall wealth.
rez2405 2
Key word is “net”
What you don’t see is the term “liquidated funds”
alt2tab
I mean even if you factor out the value of the Angels franchise at $1.9B, the employee salaries are still worth 0.5% of Moreno’s overall worth. And that’s using the highest estimate of the employees’ monthly salaries.
I understand what you’re saying about Moreno’s actual cash-on-hand, but let’s not pretend like he couldn’t afford to keep his workers employed if he wanted to – whether or not that means liquidating some of his assets.
JtS12
Liquidating an asset is not always a good business decision. Yeah it sucks to hear that but the owner also wants to keep his money. Your argument is like saying why doesn’t an airline sell its assets for cash so they don’t have to cut employees. Well, the answer is who is willing to buy am airplane for its fair value? Yeah if you offered for me to buy your airplane for $5 I would take it but that isn’t a good decision for you. Same applies to Arte Moreno. He has assets but he needs to make good decisions with them. He is not going to sell his assets for less than what he deems fair value just to pay employees and neither would you. It may be sad for some but it is the truth.
AngelDiceClay
Why is their always be the fan who is either
A. Unemployed
B. Retired on a fix income
C. Making minimum wage
That thinks they know better what to do in running a billion dollar sports franchise than the guy who actually amassed the $$$ it took to acquire the franchise and is doing what is best for him and buisness partners. ????
alt2tab
Shockingly I’m still allowed to have an opinion even if I don’t fit into one of those three categories. And my criticism is more about the selfishness of Moreno’s decision that, when his employees likely need financial support the most, he turns his back on them so he can preserve a modicum of his wealth.
It also speaks to the larger issue of owners asking players to make sacrifices w/r/t their salaries when they’re not willing to make similar sacrifices to their own bank accounts.
Javia
You do realize that billionaires don’t actually have billions of dollars in cash sitting in a vault that they swim in like Scrooge McDuck, right? They own businesses that are collectively worth over a billion dollars. When those businesses don’t make money, they don’t make money. Yet they still have to pay their bills. Kinda like us.
AngelDiceClay
No one said you couldn’t have a opinion. Its just we don’t know all the facts. Its easy to criticize a billionaire. But the billionaire has to pay the bills. This is a unusual situation that know one saw coming. Just a few weeks ago Arte was savior paying people for another month. Now he’s scrooge
JtS12
Alt2tab, Javia is right. Net worth does not equal cash. Also, Arte wants to keep his team. If things were to really go downhill he may have to sell it though hopefully not. Arte needs to think longterm. Just because we are starting a season now doesn’t mean we will finish a profitable season this year. Next year will also likely be affected. After all. In the middle of March people were saying we could be okay and back to normal for a normal season around Memorial Day. Obviously that didn’t happen. And the plans made right now will likely be changed too. This will affect profits. Moreno needs to think about profits now and in the future and yes he probably has more cash than most of us but he also has the right to choose what is best to do with his cash and all his other assets. Yes you are allowed to have an opinion but at least try to think about it with an open mind before you turn Moreno into some villain.
prov356
It’s envy.
There’s nothing wrong with being rich. I’ve never worked for a poor guy.
jkoch717
If the Angels are paying them through a “grant,” the employees won’t eligible for unemployment. It’s still considered wages, despite how they have it written up. The only way they could get by would be if they provide them a small amount that keeps them under the benefit amount that is set by CA, but even then that would be minimal.
Halo11Fan
This virus has affected everyone. A lot of people don’t have jobs today, and I can’t blame anyone for furloughing employees when revenue is not being generated.
Lets just hope things are back to normal sooner than later and not point fingers at every employer that doesn’t want to give away money for employees who can’t work and businesses that are not generating revenue.
jkoch717
Who’s pointing fingers? I was just making a statement in regards to Jeff’s statement in the article that they would be receiving unemployment and the wages from the team.
WarkMohlers
They wouldn’t get wages. The grants are most likely like other hardship assistance funds. They are one time amounts given but not for working but are still taxable income.
Halo11Fan
I’m not pointing any fingers.
I hit reply instead of new post
The Human Rain Delay
Yup, thats the key ….will this money from Angels kick them off unemployment which pays them more?
Many employees who are getting paid by the PPP loan face this situation right now (me)….but this sounds like something different in a grant////// def see your angle here though the article was very inconclusive to how this will affect the actual employees pay rate per month….
For all those crying Arte is being cheap, you have no no idea (at least from this article) that is the case right now…… save the internet warrior mantra for the next battle
HalosHeavenJJ
In any normal year, baseball would be back and OC would be abuzz with talk of a new ballpark. Instead we’re debating how to best furlough employees.
dave frost nhlpa
Artie is absolute trash. If he was smart,which he’s not,he would change the name back. Fans literally have stayed away because of that.
And the food at the stadium blows. It’s like a mall
food court.
rez2405 2
actually I’m glad he’s “smart” but not concerning himself with the opinions of the sheep. Last I checked he around the worth of trouts new contract. Last we checked since the name change in 2005, its now well over a billion dollars
wordonthestreet
Fans have NOT stayed away due to the name change. Get real.
AngelDiceClay
You criticize Arte for changing the name to Los Angeles for monetary reasons. Let me know when the Dodgers change to the Pacoima Dodgers or when the Hoboken Yanks comes to Anaheim and come over to your side. 3M plus a year. Yeah they really stayed away