D

Leading Off (11/30/08): Unplanned, Unexpected, Odd Sunday Edition

1. Early this morning, a driver hit four pedestrians in Deep Ellum. The odd thing about the story: that there were even four pedestrians available in Deep Ellum to hit.

2. Rod Dreher had this great line in his Points column today: “And having once given the nation George W. Bush — and given him to our countrymen good and hard — we Texans sure as hell owe them one.” The odd thing about the story: I’ve heard the DCVB is considering abandoning its “Live Large. Think Big.” slogan in favor of “Giving It to Our Countrymen Good and Hard.”

3. Speaking of which, Laura Bush did a turn on Meet the Press this morning. She still hasn’t picked a house in Dallas, but she said she and the mister will spend their weekdays in town and their weekends in Crawford. The odd thing about the story: if the Bushes move in next door to you, does that drive your home value up or down?

For Thanksgiving, A Nice Little Fiscal Tribute To Texas

While other states scramble to find money or beg Washington for bailouts, Texas is sitting on a $11 billion surplus. How did that happen? Leonard Gilroy (love that name!) at Reason takes a look.

(Of course, fiscal stinginess can extract its own price. How about using some of that surplus to create a true Tier 1 public university in Texas? So that 5,000 Texas students don’t have to go out of state to get a superior education?)

Yet Another in a Series of Embarrassing Pictures of Eric Celeste

Yeah, it’s not quite 9 o’clock. Yeah, everyone is cooking stuffing in preparation for tomorrow’s feast. But Eric is sleepy. So to the couch he goes. Clinical depression or just abject slothfulness? Only his therapist knows for sure.

Meanwhile, Back at the D Magazine Offices

As we struggle through this deadline getting the January edition of the “print product” to the printer, Stacey just said something negative about P90X Tony Horton. Whereupon Eric beat her to the ground and started kicking her in the gut with his boots. See for yourself.

DIRECTV Blimp Over Fair Park?

Anyone know why the DIRECTV blimp would be flying around Fair Park? I can see it from my office window, and Adam called in from the road to express his confusion, too.

Another Upscale Restaurant Project Bites the Dust

Oh, yes it did. Ouch.

Trucker Hits Bush Turnpike Bridge

An alert FBvian sent me these photos yesterday. Just now getting around to posting them, with apologies for the delay. The FBvian writes:

Looks as if some trucker forgot his bridge height maps while traveling east on 635 through Valley Ranch. Been there most of the day already.

Why Martini Park Closed

In the June issue of the “print product,” Eric wrote lovingly of the cougar hunting grounds known as Martini Park. The joint has shuttered — essentially because it sold too much booze. What? Yes. Nancy has the story over on SideDish.

How Bad Is It at A.H. Belo?

It could be very bad. In July, when we last looked at its financials, I said the market was being irrational for its low valuation of $122 million. Today that valuation has sunk to $40 million. When I first saw that figure today, I was dumbstruck. Surely, Belo’s real estate is worth that much. But then I plunged into the financials to make my case that the market has gone insane — and now I must admit I’m not so sure it has. The company looks like it is running out of cash.

For the third quarter ending September 30, A.H. Belo had current assets of $122 million with current liabilities of $113 million, giving it a net working capital of $8 million $9 million. Cash flow from operations was $25 million but deducted from that were $14 million in capital expenditures, netting $11 million. (My rule of thumb for media companies, learned over years of hard experience, is that we need about 10 percent of our annual revenues in cash to operate: in A.H. Belo’s case, that would be about $60 million to $80 million.) Belo’s cash position, which looks perilous to me, has to have gotten worse since the economic collapse; ours certainly has. As for that real estate, in today’s market it could probably bring in $30 million or so, if anyone could get the financing to buy it. But it is co-owned with its broadcasting sibling, Belo Corp., so the net effect of a sale would only be $15 million or so.

This analysis is dated, to be sure: I’m depending on September 30 balance sheet numbers. On the other hand, things have gone into the ditch since then. Riverside, California, where the company owns the Press-Enterprise, is the worst real estate market in the country and has an unemployment rate of 9.5 percent. In Providence, where it owns the Journal, October home sales fell 12 percent, the largest decline in the Northeast.

So it seems the market is being rational after all. In which case, it is time to be worried about how A.H. Belo and the Morning News will manage to survive. Any commenters who have a media financial background or inside knowledge would be greatly appreciated. I would love someone to challenge or — even better — disprove my gloomy assessment.

How My Meeting With Wick Just Ended

“You are the worst managing editor in America.”

As punishment, he refuses to fire me.

Perots Take a Bath

Yesterday it was revealed that a hedge fund controlled by the Perot family is being forced to liquidate. Parkcentral Global Hub was worth $2.5 billion earlier this year; now it’s worth $1.5 billion. The rumor I’m hearing is that Ross Perot himself lost somewhere north of $200 million in the fund. Forbes recently put his worth at $5 billion, so that probably won’t change his vacation plans. But it still has to smart.

Friday Fun (Early Edition): Turkey Shoot

Happy almost Thanksgiving, one and all. For those of us putting in a full three-day work week this week, here’s your pseudo-Friday Fun. It’s called Turkey Shoot, and since more than a couple of you sent it to me, I’m going to assume it’s popular. At the very least, it’s holiday-themed. (Also, banjo alert. Volume down before clicking.) Enjoy.

D/FW Mood = “Upbeat”

Once again, Travelocity is posting real-time reports from the major airports in the country for you FrontBurnervians traveling not by car, bus, or train. Check it the Window Seat Blog, if so inclined.

FrontBurner Reporter Fails To Report On Pseudo-Witnessed Police Action

Here’s all I know: Driving home on back streets yesterday, I saw a police car blocking Morningside Ave. at McMillan. A mail van was parked there, too, and the postal carrier was talking to the police officer. As I drove by, I saw a man on the front yard of the house a few doors down. He was on his knees, wearinging an undershirt, and seemingly pleading with a woman who may or may not have been in a bathrobe—can’t recall. Odd, I thought. Then, driving a bit further, I saw three more police cars, one of them in the alley. Also in the alley: an officer peering over a fence with a rifle aimed in the direction of the situation. Very odd, I thought. A bit scary, too. The police reports online only include today’s incidents. Anyone know anything more?

Leading Off (11/26/08)

1. That woman who jumped from an overpass onto Central yesterday, stopping traffic for two hours? She was delusional.

2. I’ve got a ranch in downtown Dallas. I buy diamonds by the ton. Chase cuties in my cadillac, drill oil wells just for fun. But when it comes to boots, I need a deal that will fit me right toe to heel, so I get my boots at — not at Western Warehouse.

3. Things aren’t looking so good. People are leaping to their deaths. Beloved shoe stores are going out of business. It’s enough to drive a man to drink. And, locally, that’s exactly what people are doing.

We Read Other Dallas Blogs So That You Don’t Have To

The author of Urban Insanity has a problem.

Because of my own indiscretion, a dozen or so gays in Dallas now know who I am, and some of them now pull up this site occasionally. 

That means that I can never again be completely honest and forthright on this blog. 

Things I want to discuss or throw out there into the cyber universe for comments are no longer anonymous, and my reputation as a professional and as a gay man are now subject to scrutiny by acquaintances based upon the ramblings in my cyber diary.  

Many of us have “hookups,” and judging from what I’ve seen here in Dallas over the last 2 years, I am not the biggest slut on the strip. 

He asks for your advice and counsel. For some reason, I have a feeling he’ll get it. 

Dallas Home Prices Down, Condo Prices Up

Dallas home prices fell 2.7 in September against a Case-Shiller 20-city average of -17.4%. Dallas was the best market in the country, followed by Charlotte. Meanwhile, Dallas condo prices rose 11.1% in October, which was also the strongest performance in the country, followed by Bismarck.

DMN’s Miller Turns 85

A quick shout-out to Robert Miller, the Energizer Bunny of DMN business columnists. Miller, who specializes in chronicling the corporate benefactors of local nonprofits, turns 85 this week and is still going strong. Salud to one of the good guys.

FrontBurner Can Has Twitter?

To whomever started a Twitter for FrontBurner: brilliant viral marketing or another waste of time, I know not. But I applaud you for it either way. I follow.

Update: Looks like there’s one for D Magazine, too. Murmur.

Re: Which D Magazine Cover Do You Prefer?

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Zac Crain is a “Varied, Interesting Person”

Best of Texas’ Squawker blog thinks so. Check out the profile of Zac, along with “5 Stupid Questions.” Can a biopic be far behind? If so, I like Sam Rockwell in the title role. The physical resemblance is slight, but Rockwell really knows how to disappear into a role. Oh, and if the biopic includes bits from the future, Sam Elliot circa Big Lebowski is a ringer for Old Man Crain.

Leading Off (11/25/08)

1. Dallas is getting closer to passing a smoking ban in bars, and violaters could face a $200 fine if caught. Of course, if enforcement of the previous smoking laws are any guide, the odds of you getting fined are about the same as finding a parking space at the Monk after 5 p.m.

2. Jerry Jones is in his underground lair this morning, staring at the printouts from his evil computer, which show 85 percent of season tickets sold for next year at his new stadium. In response, he smiles his evil smile, incinerates one of his flying monkeys with his fire vision (to keep the others in line), and says softly, “What global economic crisis? Bwaahahahahahahaha!”

3. President Bush pardoned three Texans yesterday, but has yet to consider my case. Perhaps that’s because I’ve admitted I’m guilty…of love in the first degree.

Holy Land Defendents Found Guilty

Late this afternoon, the government finally won its case – unanimously on all counts – after a mistrial a year ago.

Go To Austin College And See The World

The little (but highly regarded) college in Sherman ranks #1 in participation of undergraduates in its study abroad program.

Mark Cuban to Don Nelson: “Suck an Egg, Buddy.”

Here’s some insight into how Mark Cuban does business. Others have mentioned this information, but I’d like to share with you the e-mails and court filings that Cuban will attempt to have sealed in a hearing on December 1.

For those who haven’t been keeping up, Don Nelson claims Cuban owes him money. Last summer, an arbitrator agreed, ordering Cuban to pay him about $6.3 million. Cuban appealed to district court, where, last Wednesday, a judge confirmed the arbitration and ordered Cuban to pay even more (about $800,000 in attorneys’ fees, plus 5 percent annually until the judgment is satisfied).

But as you’ll see in the e-mails at the end of that PDF linked to above, it’s pretty clear that Cuban has no intention of paying his debts anytime soon. In a series of e-mails written in September, Cuban’s lawyer, Geoffrey Harper of Fish & Richardson, says:

I just follow orders. … [S]ince the rate for postjudgment interest is much less than the cost of capital, I think the team is making a business decision. (I don’t think anyone expects this to end differently than the current judgment; but apparently it is cheaper to use the money and pay later? I am not sure I understand it to be candid.)

Then, later that same day, Harper says:

[I]n the process of running all the numbers that we got from you, I think [Cuban] discovered that the team was better off paying don postjudgment interest after 2 years of appeals than paying him in full now and having to pay the price of capital. That led to a discussion with me last night about whether don would take a haircut to true up the numbers (i.e., Make it as least neutral for the team). … Mark was ready to pay until the cfo showed him how that was not financially smart.

So, in other words, Cuban, with his CFO’s help, has determined that paying his debts is actually more expensive than not paying his debts. And people question his intelligence?