Tuesday, January 18, 2011

Making Money With Options


After Taking Big Sugar Money, Florida Ag. Commissioner Adam Putnam Seeks To Halt Soda Ban In Schools


Rep. Adam Putnam (R-FL) has yet to take office in his new role as Florida Agriculture Commissioner, but he’s already making his Big Sugar contributors smile.


Throughout 2010, the State Board of Education has considered banning sugary drinks from Florida schools, including soft drinks, high-sugar juices, and chocolate milk. According to the Orlando Sentinel, Board member John Padget “has been pressing his colleagues for a year to cut out most beverages besides water, pure juice and white, low-fat milk.” Justifying such a move, Padget writes in a Key West Citizen op-ed, is the fact that “over one-third of America’s children are either overweight or obese,” leaving them “often less ready to learn in the classroom.”


A few weeks before the issue was to be considered, the state’s newly-elected Agriculture Commissioner, Adam Putnam, wrote a letter demanding that the Board of Education halt such a move. Putnam criticized the Board for choosing “to focus only on the nutrition content in beverages served in Florida schools,” rather than taking a more holistic approach:


One such area that I look forward to tackling is ensuring that Florida’s students have better nutrition options to reduce obesity and related long-term health risks. This is a topic your Board has discussed recently for possible policy recommendations. However, instead of looking at the entire nutrition intake of students, you have chosen to focus only on the nutrition content in beverages served in Florida schools. It is my belief that any nutrition improvement plan needs to be certain that students are receiving the best possible nutrition package, in concert with total wellness initiatives, to allow them to reach their optimum achievement potential. [...]


First steps would be to take a comprehensive look at current school foodservice offerings, rather than making individual product recommendations that do not address the broader health picture. This comprehensive approach will need time to develop and I would appreciate your Board considering delaying any plans to address just a single component of the nutrition factors and instead allow time for a complete approach to building a healthier generation of Florida students.


As a result, “the Board of Education decided to put off any further discussion of the issue,” Deborah Higgins of the Board of Education’s communications department told ThinkProgress, “until the agriculture commissioner-elect Adam Putnam was sworn in.”


However, campaign finance records show that Putnam is less than an impartial figure in the matter. A ThinkProgress investigation has found that the incoming Agriculture Commissioner has been the benefactor of a significant amount of money from both the sugar and dairy lobby during the campaign – both of whom have a strong financial interest in keeping sugary drinks in schools. Despite Florida’s $500 contribution limit for both individuals and PACs, Putnam received at least $61,000 in campaign funds from sugar and dairy interests, including maxed-out contributions from Coca Cola’s lobbyist in Tallahassee Brian Ballard and a slew of maxed out contributions from the Sugar Barons of South Florida, the Fanjul family.


Following his victory on November 2, Putnam also made a wealthy sugar magnate one of his first appointments. Tracy Duda Chapman, Vice President and General Counsel for the corporate megafarm A. Duda & Sons, Inc., was appointed by Putnam as co-chair of his four-member transition team. Chapman is not just heavily invested in the sugar industry herself. She also serves on the leadership of the Florida Land Council trade association alongside the senior vice president of the US Sugar Corporation, Robert Coker, who also maxed out to Putnam.


There is little doubt that sugarmakers take comfort with Chapman sitting at Putnam’s right hand. Now that Putnam has moved to block a ban of sugary beverages in schools, that faith has been vindicated. In an instance of life imitating art, Florida sugarmakers are proving true the classic Simpsons quote, “In America, first you get the sugar, then you get the power.”


Padget, who has spearheaded this issue for over a year, remains cautiously optimistic. “I think we could have 4 votes for this issue,” Padget told ThinkProgress by phone, which would constitute a majority of the seven-member Board. “Still,” he said, “there is a lot of work to be done. I look forward to Commissioner-elect Putnam’s contributions to this effort.”









Otto Greule Jr/Getty Images




It was only a couple months ago that the Rangers were (near) the top of the baseball world.  They fulfilled their role as David, when slaying the Goliath Yankees, and endeared themselves to millions of baseball fans across the country with their love of all things hustle.

But things changed for the Rangers in a New York minute (you knew that New York would get back in the discussion) when Cliff Lee, their undisputed ace, shocked the baseball world and fled back to Philadelphia.  Just like that, the Rangers rotation—a strength—turned into a weakness.  Panic spread across Texas.

So they did what any right-minded club would do—go sign the next biggest name available.  Because if you can't have the prom queen, you should at least get her still cute best friend...right?  Except in this case, it's wrong...very wrong.

The Rangers are closing in on signing 3B Adrian Beltre to a 6-year, $96 million dollar deal that frankly makes, well, no sense.  There are definitely positives to Beltre—he's coming off a big season, he's one of the best fielding third baseman (and players) in all of baseball, and he does have a power bat.  But for the few reasons that the deal does make some sense, there are many more reasons why it doesn't. 

Why?  Let's break it down:

  • Beltre will be 32 years old a week into the season—not ancient—but definitely edging towards the downside of his career.  On top of that, this will be his 14th season.  If there's such a thing as a "young" veteran, Beltre isn't it.  Do you really see this guy still going strong when he's in his 17th, 18th or 19th year of his career (or the second half of his contract)?
  • In 13 previous seasons, Beltre has made the postseason ONCE!  That was in 2004-2005, while still with the Dodgers.  Beltre's line was .267 AVG, one RBI, zero extra-base hits, three K's, zero BB's—a series that saw the Dodgers lose handily to the Cardinals in four games.  For the record, that was the same year he had his breakout season, when he finished second in the NL MVP race.
  • Beltre is notorious for having big years in the last year of his contract (see 2004 with Dodgers, 2010 with Boston).  I think we saw with Seattle what happens when the guy isn't as motivated to play for the next big contract
  • Texas is a SMALL market team.  Giving an aging player a deal averaging $16 million a year is ABSURD.  Look at the Yankees with A-Rod.  A-Rod is making $30 million a year for the next eight seasons, yet is already being hampered with injuries.  Throwing this amount of money at guys over 30 years old with 10+ years of experience is a huge risk, especially for a team like Texas. 
  • As a team, Texas had a salary of around $55 million last year, which ranked 26th in the majors.  That means that they're going to give Beltre a contract that composes nearly 29 percent of their salary from last season.  
  • How was this the price set for Beltre this offseason?  Carlos Gonzalez—a much younger OF coming off a major season, who has more upside than Beltre,  just agreed to a seven-year, $80 million deal with Colorado.  Are we to believe that Beltre is worth $16 million more (and a year less) than CarGo?
  • Where is Michael Young going?  Remember, your CURRENTLY highest-paid player who JUST HAPPENS to play third base.  He has three more years left on his deal, worth $48 million.  Are the Rangers ready to eat $16 million a year for Young to have Beltre play the same position?  Young is 34 years old and has a big contract for the next three seasons.  What team is going to be willing to eat that amount of money while taking Young on the downside of his career?  On top of that, Young has a no-trade clause in his contract with 22 teams on it, further limiting the options the Rangers have with him. 

Source:http://removeripoffreports.net/

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