Latest On Dodgers’ Payroll Problems

The Dodgers lack the funds to meet their second May payroll due at month's end, wrote Bill Shaikin of the L.A. Times last night.  Last month's $30MM loan from Fox will only carry them through the first May payroll.  According to Shaikin, MLB would cover the team's expenses if the Dodgers can't and would have the option to seize the team.

As Shaikin notes, owner Frank McCourt believes MLB has already effectively seized the Dodgers by failing to approve the Fox television contract and appointing Tom Schieffer to be in charge of the team's finances.  But this payroll situation could accelerate the MLB-McCourt showdown, says Shaikin.  He explains the possibilities:

McCourt [may be forced] to find outside financing to meet the second May payroll, surrender the team or file suit against MLB. It is "very unlikely" that Fox would extend another loan to McCourt, a person familiar with the matter said.


27 Responses to Latest On Dodgers’ Payroll Problems Leave a Reply

  1. TheHotCorner 4 years ago

    Just say good-bye Frank. I don’t have the Dodgers financials sitting here front of me be but it appears inevitable at this point and would be best for all parties involved.

  2. nzmrmn 4 years ago

    I’m a Giants fan. This is embarrassing to all of baseball.

    • But you see, no one cares what you think, so you’ve wasted your time commenting, which is typical for a Giants fan.

    • monkeydung 4 years ago

      in the entire 6 months that you’ve been a baseball fan, this must be one of the craziest stories that you’ve ever read.

  3. Our favorite team goes bankrupt …. and we have to consider it good news!!!!! what a topsy-turvy world…

    • BlueSkyLA 4 years ago

      FWIW, the team isn’t exactly bankrupt. Assets still greatly exceed liabilities. The problem is cash flow. The way to cure a cash flow problem is to sell assets. Are you hearing this, Frank?

  4. I believe McCourt understands he messed up but I still think his new found vision is a little to late. If it wasn’t for the tv deal he would not have money for payroll and that should be the biggest red flag. Please sell the Dodgers.

    • BlueSkyLA 4 years ago

      His argument is that he deserves the opportunity to negotiate a new TV deal. Since media contracts are one the main ways all baseball franchises meet their payroll, it’s not a totally invalid argument. The big problem, as I see it, is that McCourt is trying to use an advance on future media rights to meet current expenses, and also (inevitably) to buy out Jamie’s share, whatever that turns out to be. So in reality he’d be mortgaging the team. I’m pretty sure that is the big issue with MLB. The issue with the fans of course is that we have no faith in the ownership. Frank simply refuses to understand that he can’t run a ball club without the fans.

      • lasordaforpresident 4 years ago

        you mean its not okay for me to pay off my car payment with my work salary from 2013?

        • BlueSkyLA 4 years ago

          When you bought your car on time, you were essentially already borrowing against your future income. So Frank’s scheme is more like taking out a second mortgage on your house to make the payments on the car.

      • SmackSaw 4 years ago

        The current TV deal runs for 2 more years. Where’s the money Frank?

        • BlueSkyLA 4 years ago

          I spent it on haircuts, lawyers, and jobs for my kids that don’t involve doing any actual work. I know I totally screwed millions of loyal Dodger fans, but I’m really sorry about it now, and I promise I won’t ever do it again.

          Love and kisses,

          Frank
          P.S.: Trust me.

  5. lasordaforpresident 4 years ago

    Off topic but Dodger related…anyone know what is wrong with Aaron Miller? I’m guessing he is hurt and in Arizona but haven’t seen anything specific

  6. bosox21 4 years ago

    I had a dream last night of the guy from Mad Money taking a bat to a bobblehead of McCourt yelling SELL SELL SELL!!!

    • Encarnacion's Parrot 4 years ago

      Any dream of Mad Money makes you wake up in a cold sweat.

  7. PostMoBills 4 years ago

    Move them to Montreal!

    (not srs)

  8. Encarnacion's Parrot 4 years ago

    Contraction!

    (sarcasm for those with an obtuse sense of humor)

  9. meep 4 years ago

    i thought the dude couldnt sue. so if that true why are they talking about him maybe suing MLB

    • BlueSkyLA 4 years ago

      The dude can sue. Any dude can sue. But can any dude win? Not that dude.

      • meep 4 years ago

        but i heard he sign a contract saying he cant sue MLB

        • BlueSkyLA 4 years ago

          Yes, but McCourt can claim that the commissioner is acting in an arbitrary and capricious manner. In essence he has to show that MLB violated the contract. From what I’ve heard, he doesn’t have a snowball’s chance.

  10. icedrake523 4 years ago

    And people will still think the Mets are in worse shape.

    • Gumby65 4 years ago

      Because the Dodgers’ fate will be changed for the better, yes. Mets’ fans may soon wish Bud & the Wilpon’s weren’t the best of friends.

  11. Gumby65 4 years ago

    Well you’re one more person that now realizes this. Still waiting for Fort McCrank to smell this coffee now.

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