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Potential Loria Ambassadorship Could Compromise Marlins Sale Negotiations

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Last week, Mike Ozanian of Forbes reported that Marlins owner Jeffrey Loria had a “handshake agreement” in place to sell the team to a New York-based real estate developer, which was later reported (by Steven Wine of the Associated Press) to be Joshua Kushner — the brother of Jared Kushner, who serves as a senior advisor to his father-in-law, president Donald Trump.

In a new and fairly astonishing wrinkle to the story, Daniel Halper of the New York Post reports that White House Chief of Staff Reince Priebus pushed for and received sign-off to name Loria the United States ambassador to France. The decisions were made without the approval of Secretary of State Rex Tillerson, sources tell Halper, despite the fact that Tillerson was promised a say in the appointment of ambassadors.

In response to this story, the the Kushner group issued a statement to the press suggesting that it will not pursue the purchase of the Marlins if Loria is indeed a nominee or appointee to that post. Via Maggie Haberman of the New York Times (on Twitter):

“Our family has been friends with Jeff Loria for over 30 years, been in business together, and even owned an AAA baseball team together. Although the Kushners have made substantial progress in discussions for us to purchase the Marlins, recent reports suggest that Mr. Loria will soon be nominated by the President to be Ambassador to France. If that is true, we do not want this unrelated transaction to complicate that process and will not pursue it. The Kushners remain interested in purchasing a team and would love to buy the Marlins at another time.”

The potential appointment of Loria is just the latest complication in the potential sale. The initial report of the agreement noted that the Kushner group does not currently have enough liquid assets to meet the $1.6 billion price point that the two sides have reportedly agreed upon. Beyond that, Charles Kushner — Joshua’s father — served a two-year prison sentence last decade, which could have proved problematic when the Kushner group sought ownership approval from the office of Major League Baseball commissioner Rob Manfred. Furthermore, the commissioner’s office released a statement shortly after the initial wave of reports which indicated that it had “not heard directly or indirectly of any conversation involving Charles Kushner.”

Wine’s report indicated that the deal between Loria and Joshua Kushner was made independently of Charles or Jared Kushner, though certainly one would imagine that the Manfred’s approval process would’ve nonetheless been extensive given the circumstances.

Justin Bour Set For Everyday Duties At First Base

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  • Marlins manager Don Mattingly says that Justin Bour will be a regular at first base, as Tim Healey of the Sun-Sentinel reports. Though Bour’s limited trips to the plate against left-handed pitching thus far haven’t been very promising, the organization seems intent on giving him a chance to show he can be more than a platoon player. “This is a guy who has an opportunity,” said Mattingly. “We think he’s getting better.”

Marlins Notes: Francoeur, Johnson, Lineup, Padres

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The latest from the Marlins, as per Barry Jackson of the Miami Herald…

  • The Marlins only have interest in bringing back Jeff Francoeur or Chris Johnson if there’s an injury on the current roster.  The two veterans haven’t generated much buzz this offseason, as Johnson has only been linked to the Marlins while Francoeur has at least received some interest from both Miami and Atlanta.  It seems like the Marlins will go into Spring Training and possibly the season itself with just a four-man bench, something president of baseball operations Michael Hill calls “a calculated risk on our part.  We’re comfortable with where we sit right now.”  That said, Hill told Jackson and other reporters that the door wasn’t totally closed on another addition: “There are still players out there and that’s not to say we still may not do something before Opening Day.”
  • Though signing another hitter “was definitely discussed,” Hill believes his club already has the personnel to deliver a big improvement at the plate.  Hill cited the hiring of new hitting coach Mike Pagliarulo as one reason for this belief, not to mention full seasons from Giancarlo Stanton, Justin Bour and Dee Gordon.  “This organization has supreme confidence in our core position players. You go position by position, and you have talent and players that are championship caliber players. Ultimately, that’s why we chose to focus on our pitching,” Hill said.
  • Last week, FOX Sports’ Ken Rosenthal wrote about the impact that the controversial and partially-reversed Marlins/Padres trade had on both clubs and on the NL East as a whole, as Miami would’ve instead acquired Jeremy Hellickson from the Phillies.  Rosenthal reported that while MLB offered the Marlins the chance to reverse the entire trade, Miami chose to just take a partial rescind (re-acquiring Luis Castillo and sending Colin Rea back to San Diego) since the Fish believed the league “preferred” that the two sides work out a solution between themselves.  Jackson adds a different twist, reporting that the league “told” the Marlins to make a new arrangement with the Padres rather than cancel the original trade entirely, which was the solution Miami wanted.

David Samson On Marlins' Potential Sale, Stadium Naming Rights, TV Deal

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Unsurprisingly, Marlins president David Samson didn’t reveal much Saturday when asked about the rumored “handshake agreement” owner Jeffrey Loria has to sell the franchise to Joshua Kushner. “There’s obviously a lot of buzz, there’s rumors, there’s all sorts of stuff that happens all the time,” he told Tim Healey of the South Florida Sun Sentinel. “Are these rumors different than other rumors? Time will always tell what happens.” Samson, who added that Loria “loves being [in Miami],” also informed Joe Frisaro of MLB.com that the franchise is focusing on selling Marlins Park’s naming rights and amending its TV deal prior to 2018. On naming rights, Samson said: “There’s still three companies, and we cannot figure out which direction we’re going to go in. I still want to get it done before the All-Star Game. It’s such a long-term decision. I don’t want to make the wrong one.” The Marlins’ TV contract with FOX Sports Florida runs through 2020, but Samson noted that both parties know the “deal is in a place where it’s not commensurate with the revenue that should be coming to the team, given the content that we’re giving. That is no fault of anybody’s but mine.”

Men Who Died In Boat Crash Suing Jose Fernandez's Estate

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  • The families of Eduardo Rivero and Emilio Jesus Macias, who were killed in a boat wreck along with former Marlins ace Jose Fernandez last September, are suing Fernandez’s estate for $2MM each, Rafael Olmeda of the Sun Sentinel writes. Fernandez’s attorney says a settlement is “highly unlikely,” noting that he expects the Florida Fish and Wildlife Conservation Commission’s pending investigation of the wreck to show that Fernandez was not driving the boat when it crashed. He also adds that there are indications Fernandez’s use of cocaine that night was “not voluntary” and that Fernandez might not have known he had the drug in his system.

Marlins Reportedly Have “Handshake Agreement” To Sell Team

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SATURDAY 8:49am: Charles Kushner’s son Joshua — Jared Kushner’s younger brother — is the person with the preliminary agreement to buy the Marlins, Steven Wine of the AP writes. Charles and Jared Kushner are not believed to be involved with the deal. The team could sell for far less than $1.6 billion after Joshua Kushner does due diligence, according to Wine.

THURSDAY 5:24pm: Kushner is “not involved” in the reported handshake deal, per Jon Heyman of Fan Rag, and likely wouldn’t pass muster from the league’s perspective.

4:34pm: The league has issued a short statement on the matter (h/t Ken Rosenthal of FOX Sports, on Facebook): “Under Major League Baseball rules, the Commissioner’s Office must be informed of any conversations about a potential sale. The Commissioner’s Office has not heard directly or indirectly of any conversation involving Charles Kushner.”

3:55pm: New York real estate executive Charles Kushner is involved with at least one group making a bid for the Marlins, according to the AP and ESPN.com’s Darren Rovell, though it’s not clear how prominent a role he has or whether his party is the one referenced in this morning’s report. Assuming he is a part of the leading bid group, Kushner could complicate matters for the league. Beyond the cash shortfall noted by Ozanian, Kushner has a troubling criminal history, as this Bloomberg story details. And then there’s the fact that his son, Jared, is married into the family of and serves as a senior adviser to president Donald Trump.

10:27am: The Marlins have a “handshake agreement” in place to sell the team to a New York-based real estate developer for the price of $1.6 billion, reports Mike Ozanian of Forbes. Ozanian cites two anonymous sources that claim to have been told by Marlins president David Samson that the deal is in place. The $1.6 billion price tag would be more than 10 times the $158MM price at which owner Jeffrey Loria purchased the team back in 2002.

The hangup in the reported agreement for the time being is that the potential buyer does not have enough liquid assets to make the purchase, as the majority of his net worth is tied up in real estate investments. Allowing this buyer to purchase the team would require more debt than Major League Baseball would be comfortable with, per Ozanian.

As Ozanian points out, the Dodgers’ current ownership group took on an enormous amount of debt when buying the team for $2 billion, but Guggenheim Baseball Management also had hundred of millions of dollars in hedge fund money and a $6 billion television agreement that dwarfs the Marlins’ current contract with Fox Sports Florida.

Clark Spencer of the Miami Herald writes that he reached out to Samson in light of the Forbes report but was met with a reply of, “no comment at all.” There have been reports since December that Loria could consider a sale of the team, with Ozanian reporting at the time that Loria sought a $1.7 billion price tag. In Ozanian’s latest report, he notes that Solamere Capital considered purchasing the club and had been discussing a $1.4 billion price with Loria.

A sale of the Marlins would bring to a close one of the most controversial ownership tenures in recent history. Loria has been widely panned by both fans and the media for an unwillingness to spend on the on-field product, orchestrating multiple fire sales even after winning the World Series in 2003 and opening a new, taxpayer-funded stadium in 2012. As Vocativ’s Joe Lemire points out (on Twitter), if the sale of the team does ultimately go through, Loria will have paid just $15.5MM of the $325MM that is owed to star right fielder Giancarlo Stanton on his exceptionally backloaded 13-year contract.

David Phelps Wins Arbitration Hearing Against Marlins

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Right-hander David Phelps has won his arbitration hearing against the Marlins, reports Tim Healey of the South Florida Sun-Sentinel (Twitter link). As shown in MLBTR’s 2017 Arbitration Tracker, Phelps had filed for a $4.6MM salary against the Marlins’ submission of $4.3MM. Phelps, a client of Arland Sports, will earn the greater of those two sums in 2017.

The 30-year-old Phelps had a breakout season with the Marlins in 2016, emerging as a lights-out setup man for much of the season and making five starts late in the year as well. All told, the former Yankee tossed 86 2/3 innings with a 2.28 ERA, 11.8 K/9, 4.0 BB/9 and a 46.2 percent ground-ball rate. He also racked up 25 holds, which figures to have aided his arbitration case.

Phelps is capable of both starting and relieving, though the Marlins are said to prefer him in a bullpen role this coming season. He’ll team with A.J. Ramos, Kyle Barraclough, Brad Ziegler and Junichi Tazawa at the back of what looks to be a formidable Marlins relief corps.

With Phelps’ salary now settled, the Marlins have resolved all six of their offseason arbitration cases.

Fallout From The Andrew Cashner/Colin Rea Trade

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Last summer’s partially deconstructed swap between the Marlins and Padres had far-reaching implications, Ken Rosenthal of FOX Sports writes. After learning of issues with Colin Rea’s health and discovering that San Diego had failed to disclose certain medical information, Miami considered rescinding the entire deal — which the commissioner’s office offered to facilitate. But due to practical considerations and the apparent preferences of the league, the Fish instead worked out a deal to send Rea back to the Pads for prospect Luis Castillo, thus keeping Andrew Cashner in Miami and Josh Naylor (and others) in San Diego. That, in turn, prevented an alternative deal that would’ve sent Naylor to the Phillies for righty Jeremy Hellickson. There was fallout beyond that, as Rosenthal explains, including the fact that Hellickson ultimately received and accepted a qualifying offer from the Phils that he otherwise wouldn’t have been eligible for.

Marlins Notes; Gonzalez, First Base

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  • The Marlins’ acquisition of right-hander Severino Gonzalez filled the team’s 40-man roster, making further guaranteed contracts unrealistic, MLB.com’s Joe Frisaro reports. The Marlins could still add some players on minor league deals, but with a full 40-man roster and a payroll that is at its limit (roughly $110MM), additional spending is a long shot. Miami was recently connected to both Chris Carter and Mark Reynolds, but Frisaro calls the chances of signing either “extremely remote.” The Fish do have interest in Jeff Francoeur, but he’d have to be willing to sign a minor league contract in order to return to Miami. That could ultimately happen, but Francoeur does have interest elsewhere, as the Braves are said to be in on him as well.
  • The Marlins’ acquisition of right-hander Severino Gonzalez filled the team’s 40-man roster, making further guaranteed contracts unrealistic, MLB.com’s Joe Frisaro reports. The Marlins could still add some players on minor league deals, but with a full 40-man roster and a payroll that is at its limit (roughly $110MM), additional spending is a long shot. Miami was recently connected to both Chris Carter and Mark Reynolds, but Frisaro calls the chances of signing either “extremely remote.” The Fish do have interest in Jeff Francoeur, but he’d have to be willing to sign a minor league contract in order to return to Miami. That could ultimately happen, but Francoeur does have interest elsewhere, as the Braves are said to be in on him as well.
  • Sticking with the Marlins, Barry Jackson of the Miami Herald hears that it was the agents for Carter and Reynolds who reached out to the Marlins recently, and not vice versa. That would certainly make sense, as Miami could look like an appealing landing spot, on paper, for either slugger. Jackson writes that the Marlins are considering a 13-man pitching staff and a four-man bench, making the addition of even a modestly priced right-handed bat like Carter or Reynolds unlikely. There’s still some interest in Francoeur and Chris Johnson, he notes.

Bullpen Rumors: Badenhop, Lefties, Indians, Breslow, Colome, Twins

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Former big league reliever Burke Badenhop is joining the Diamondbacks in an interesting new baseball operations position, as Nick Piecoro of the Arizona Republic tweets. In his new role, Piecoro writes, Badenhop will perform “acquisition-based pitching analysis/sports science work.” That sounds like a great way to start a new career path for the veteran hurler, though unfortunately it’ll mean sacrificing the fame and riches associated with his gig as an MLBTR contributor.

In all seriousness, MLBTR wishes Burke the very best in his new pursuit; be sure to check out his excellent work in the Player’s Perspective Series. Here’s the latest from the relief market:

  • In his latest MLB Roundup column, ESPN’s Buster Olney writes that a game of musical chairs appears poised to begin in the next couple of days as the market for left-handed relievers begins to sort itself out (ESPN Insider subscription required). Per Olney, the Indians, Mets, Blue Jays, Phillies, Giants and Marlins are the teams most aggressively seeking left-handed bullpen help. FOX’s Ken Rosenthal also tweeted this morning that the Mets are still seeking bullpen help, though Olney notes that the team doesn’t have the payroll capacity to retain Jerry Blevins at his current asking price. There are a number of free-agent southpaws remaining on the market, including Blevins, Travis Wood, Boone Logan, J.P. Howell, Charlie Furbush (recovering from August shoulder surgery), Chris Capuano, Javier Lopez and Craig Breslow. Olney notes that Wood’s deteriorating swinging-strike rate has been a cause of concern for some teams.
  • While the Indians are indeed most interested in a southpaw, the club is not limiting itself to left-handed relief options, Rosenthal notes (Twitter links). Among other possibilities, Cleveland is said to be “doing background work” on veteran righty Joe Blanton, though Rosenthal notes that it’s far from clear whether the organization will even give out any more MLB deals (which Blanton surely will require).
  • Following a workout that was reportedly attended by about half the league, Breslow is drawing some level of interest from the Indians, Blue Jays, Dodgers, Rockies, Mets, Cubs, Twins and Reds, according to WEEI’s Rob Bradford (Twitter links). The 36-year-old’s altered arm angle has piqued the interest of teams to the point where some consider him a viable fallback to Jerry Blevins and Boone Logan.
  • The Rays are still receiving trade interest in closer Alex Colome, tweets Rosenthal, but they’re not in any rush to move him. The 28-year-old Colome dominated opponents after taking over the ninth inning for the injured Brad Boxberger, tossing 56 2/3 innings of 1.91 ERA ball with 11.3 K/9, 2.4 BB/9 and a 47.1 percent ground-ball rate. Colome, though, is controllable for another four years and won’t even be arbitration-eligible until next winter, so the asking price on him would presumably be exceptionally high. While the Rays may not feel compelled to shop Colome, the team typically is willing to listen on nearly any player. I’d imagine any offer would need to include MLB-ready lineup help in addition to some prospect capital.
  • The Twins are interested in Joe Smith, reports 1500 ESPN’s Darren Wolfson in his latest podcast (audio link, with bullpen talk beginning around 1:02:55). (Wolfson also noted interest in Greg Holland, but he’s now heading elsewhere.) Minnesota is “slow-playing” its search on the free-agent market as it attempts to wait out the market to secure a late value pickup or two, and with plenty of quality names left on the market, they’re probably not the only ones employing that approach. The Twins have previously been connected to both relievers, though that interest was first reported months ago, so it wasn’t exactly clear if they’d changed course at all. New Twins chief baseball office Derek Falvey knows Smith quite well, as the side-armer spent the 2009-13 seasons with the Indians, where Falvey was previously an assistant general manager.
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