When the Dodgers let go of pitcher Derek Lowe
after the 2008 season, it was one of those moments where you wondered why they couldn't just hold onto proven assets. Money trouble?
Did the team really think he wouldn't perform in the future?
The Dodgers don't always look smart in their bets on the future, but Mr. Lowe has not exactly provided the value or promise in the 4-year, $60 million contract he got from Atlanta.
His innings were down last year, his ERA was up 1.50 and he gave up lots more hits and walks. He's on track for a much worse 2010.
Mr. Lowe's own bet on MB real estate hasn't panned out so well, either.
In Aug. 2006, he bought 204 19th
(4br/4ba, 4260 sq. ft.) new for $5.0m
When his last of 4 seasons with the Dodgers was nearly over in Sept. 2008, he listed the home for $5.7m. Nice markup.
Once he knew for sure that he was leaving town 4 months later, he dropped the price to $5.2m. (See "Lowe-ring the Price
.") Still a markup, though.
Another 4 months later came the final (public) price cut: to $4.599m on May 21, 2009. First markdown.
Precisely one year passed, and a sale closed last week, May 21, 2010, for $3.9m
That's a chop of $699k (-15%)
from the last list price. So, yes, it was priced much too high for the past year.
And that's -$1.1m/-22%
from the new & peak price, $5.0m, in Aug. 2006.
Maybe that's no big bite when you've got $30m to come even after this season, come what may.
But a new home near the beach on dreamy 19th, down 22% in less than 4 years – that's a chop that could leave a mark.