San Francisco Giants Introduce Willy Adames | Suzanna Mitchell/San Francisco Giants/GettyImages

The SF Giants have sold 10 percent of the team to a private equity group called Sixth Street which is based in San Francisco. Giants CEO Larry Baer commented on the deal and made it clear that there are not plans to reinvest the money into free agent pursuits.

Here is what Baer said per the article from the New York Times: “This is not about a stockpile for the next Aaron Judge. This is about improvements to the ballpark, making big bets on San Francisco and the community around us, and having the firepower to take us into the next generation.”

Larry Baer says SF Giants private equity deal is not to reinvest in on-field product

It bears mentioning that the sale of an ownership stake is done to generate cash flow to pay down debt or invest in capital projects. Baer’s comments suggest the latter.

If the Giants sold a stake in the organization for operating activities such as to cover payroll expenses, it would signify a much more concerning financial position. The Giants are one of the more profitable organizations in baseball, thanks in part to their real estate developments, so they ae not in a position where they would need to do that.

Ideally, capital investments are done to generate more revenue in the future, so while the plans for this liquidity might not whet the appetite for many Giants fans, it is in line with what businesses do. Now, if the Giants do not plan to reinvest that projected revenue down the road back into the team, that would certainly open themselves up for criticism.

Now, on the one hand, it is good that the ownership group will be reinvesting that money to improve Oracle Park and the community. It is the most scenic ballpark in all of baseball so any efforts to improve, or even just maintain it, are worthwhile.

At the same time, some will be disappointed that the team is not planning to reinvest the funds into the on-field product. Even though the Giants did sign shortstop Willy Adames to the largest contract in franchise history during the offseason, there was a sense that the Giants were not as aggressive in free agency as their rivals in the National League West, specifically the Arizona Diamondbacks and Los Angeles Dodgers.

Maybe it just needs to be accepted that the current ownership group is not going to approve a blank check for the front office to do whatever they want which may ultimately be prudent. Even though the Dodgers seem to be printing money, throwing cash at free agents does not always guarantee success.

We will have to see what these investments in the ballpark and community will look like. It is nice to hear that the team plans to invest in the San Francisco community at large, especially when irresponsible voices make the city out to be some sort of dystopian nightmare.

Fans who want to see the team empty the tank and splurge on every free agent will not love the fact that Baer explicitly threw cold water on that idea. Nonetheless, this sale has a noble goal to improve the ballpark and community at large which is a lot better than the owners just deciding to pocket the money and enrich themselves further. Let’s hope they follow through on this vision.