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Astros Look For Success In Rebuilding Plan; CSN Houston Still An Issue

A "dismal product on the field hurts the Astros' business operations, both in terms of getting their messy TV situation resolved and simply putting people in the seats," and fan tolerance "probably can't be pushed much further, although testing that theory could be interesting," according to Evan Drellich of the HOUSTON CHRONICLE. Astros GM Jeff Luhnow said Owner Jim Crane is "very much on board. He is, at the end of the day, the architect of the plan. I happened to articulate it in a way that matched his vision, but he is the architect and very supportive of what we're doing. Having said that, Jim is very anxious to get through this next phase and get to the point where the Astros are being celebrated in our town." The Astros have "three primary revenue streams: local TV dollars and local media; national dollars -- which are distributed evenly among MLB teams; and in-stadium revenues." Astros President of Baseball Operations Reid Ryan said that growth for the organization will come from in-stadium revenues, "with the TV situation an unknown." Ryan said, "For me, it comes down to if we want to see growth within our organization, the winning on the field directly correlates to business success over the long term, which in turn correlates to being able to maintain and attract premium players" (HOUSTON CHRONICLE, 3/29). In N.Y., Tyler Kepner notes the Astros have the lowest payroll in MLB at $45M (up from $26M in '13). But Luhnow said that the TV uncertainty "had not affected that figure or the team’s budget for amateur talent." MLB's CBA "allows the team with the worst record to spend more to sign amateurs, without penalties, than any other team," and the Astros believe they are "using the system to their advantage, with hopes of a payoff later" (N.Y. TIMES, 3/31).

OUT AT THE PLATE: In Houston, David Barron notes tomorrow's opener against the Yankees will "begin the Astros' second year with limited coverage in its five-state TV territory." The carriage impasse with CSN Houston "continues in part because Houston consumers who have a choice essentially loathe Comcast and/or love DirecTV, Dish Network or U-verse more than they love the Astros and Rockets." CSN Houston's future to a "large degree rests with U.S. District Judge Lynn Hughes." Not only will Hughes "hear the Astros' appeal" of the order placing the network into Chapter 11 bankruptcy, but the Rockets, Astros and Comcast have "empowered him to mediate a settlement to their disagreements about how the network should be managed." The parties "met behind closed doors for more than seven hours Friday, and more sessions are possible" (HOUSTON CHRONICLE, 3/31).

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