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.
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.
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.
What do you think? I doubt anybody will care either.
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.
Our favorite team goes bankrupt …. and we have to consider it good news!!!!! what a topsy-turvy world…
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?
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.
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.
you mean its not okay for me to pay off my car payment with my work salary from 2013?
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.
The current TV deal runs for 2 more years. Where’s the money Frank?
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.
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
I had a dream last night of the guy from Mad Money taking a bat to a bobblehead of McCourt yelling SELL SELL SELL!!!
Any dream of Mad Money makes you wake up in a cold sweat.
Move them to Montreal!
(not srs)
Nah, Brooklyn.
Coney Island?
Contraction!
(sarcasm for those with an obtuse sense of humor)
i thought the dude couldnt sue. so if that true why are they talking about him maybe suing MLB
The dude can sue. Any dude can sue. But can any dude win? Not that dude.
but i heard he sign a contract saying he cant sue MLB
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.
And people will still think the Mets are in worse shape.
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.