Wednesday, September 14, 2011

Bill Neukom Forced Out

Bill Neukom has been forced out as Managing General Partner of the San Francisco Giants according to Mark Purdy of the Mercury News.

From Purdy's story it seems that things came to a head because Neulom spent money on the team without consent from the executive committee that is the power behind the scenes.
he (Neukom) apparently made some financial decisions that alienated key members of the ownership group -- principally because the group believed as part of Neukom's fiduciary duties, he should have keptthem better informed about his choices and actions. Instead, some of the owners first read about those decisions in the news reports.
There is more on this thread of spending money he wasn't supposed to.
Neukom, it is said, believed that this was his money to spend as he saw fit -- and he did so, to increase payroll and buy new technology for the baseball department, among other expenditures. Instead, the executive committee allegedly wanted the money to be put in a "rainy day fund" for use in leaner times. The committee also believed that Neukom needed the committee's authorization before making such major financial decisions.
I have to say that this points to signs that we probably shouldn't expect payroll to grow much in the future without huge gains of cash that may or may not keep coming in. So you can cross off Prince Fielder, Albert Pujolus, and Jose Reyes off of your off-season shopping wish list.

Other than that I am going to take that wait and see approach.

I don't think that the other owners are dumb. I don't see them changing their view on the South Bay territorial rights, I think that they liked the cheap talent and energy that came along with an improved farm system and I don't think that they will go out of their way to dismantle the core of this talented team for a quick buck.

This news is big but I don't think that this is the time to overreact.

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