Blog Entry

MLB to offer Dodgers alternative financing

Posted on: June 28, 2011 1:22 pm
Edited on: June 28, 2011 2:26 pm
 
By Matt Snyder

There's a bankruptcy court hearing Tuesday with the Dodgers, Major League Baseball, Frank McCourt and Jamie McCourt. It's very complicated with lots of moving parts, but let's try to summarize what's on the line (via Bill Shaikin of the LA Times).

- Major League Baseball is set to offer alternative financing to the Dodgers, as it would be a better deal and put MLB in better position to take over the franchise. McCourt's proposed financing is a $150 million loan, but there's a $4.5 million fee and 10 percent interest attached to said loan. There's no word just yet on MLB's counter-proposal, but the interesting twist is that MLB had previously said it would not provide financing to the Dodgers unless McCourt sold the team. So MLB's financing plan probably involves McCourt being forced to sell the Dodgers.

- If the bankruptcy judge finds McCourt's plan acceptable, the next step is the Dodgers trying to secure a massive TV deal. They'd have to persuade the court to override the MLB rule that gives the league rights to approve all TV deals.

- Basically, McCourt and his lawyers are challenging that Bud Selig has the authority to nix TV deals or loans in what Selig perceives as in the best interests of Major League Baseball. Selig has turned down a deal McCourt worked up with Fox to extend the Dodgers' TV contract at a significant fee. McCourt wanted to sell the TV rights immediately so he could get his hands on the money, but the current deal in place runs through 2013. MLB opposes that, in part, because McCourt would be taking money from the Dodgers' future to pay his 2011 bills and settle his divorce.

- Speaking of which, Jamie McCourt's attorneys are there to argue that the bankruptcy filing devaules the Dodgers, which is easily the biggest asset in the divorce that still needs to be settled.

The LA Times has posted the full MLB response to the bankruptcy filing. It's 20 pages and chock full of legal terminology, but if you want to read, click on through.

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Category: MLB
Comments
hotmeuly
Since: Dec 2, 2011
Posted on: December 22, 2011 5:34 am
This comment has been removed.

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Since: May 17, 2008
Posted on: June 28, 2011 5:47 pm
 

MLB to offer Dodgers alternative financing

McCourt wants to was all future T.V moneys half for personal use and half for the Dodgers
I do not like Frank McCourt but this statement is not exactly true -- approximately 1/2 of the initial $385million payment would be used to settle the divorce case with Jamie, pay the lawyers and some bills (bills for which the Dodgers were used as collateral so it still benefits the team).  The rest of the almost $3billion from the contract would not be earmarked for "personal use" but would be available to operate the team.  Plus, McCourt had already said he was willing to amend the TV contract's provision on the up front money if Selig would approve it with changes--Selig would not as he really does not care about the Dodgers, he just wants McCourt out at any cost.



Since: Aug 21, 2006
Posted on: June 28, 2011 5:13 pm
 

MLB to offer Dodgers alternative financing

I do not understand how you can not go along with Bud Selig and his handling of McCourt and the Dodgers. When the McCourts used Millions of Dodgers money for their own greed and lavish lifestyles. When Selig took over the Texas Rangers he solidified the front office and then found owners who actually care about the Rangers. The Mets are about in the same position with Wilpon. Baseball has had a tought time getting its fan base back after the strike year. McCourt wants to was all future T.V moneys half for personal use and half for the Dodgers that just is not right. The bankruptcy judge would be inept if he went along with McCourt. Good luck Dodger Fans.



Since: Feb 28, 2008
Posted on: June 28, 2011 4:46 pm
 

MLB to offer Dodgers alternative financing

Your comment would make sense except for the way McCourt has looted the franchise.



Since: Jan 24, 2008
Posted on: June 28, 2011 4:22 pm
 

MLB to offer Dodgers alternative financing

The McCourt's divorce is ugly no doubt about it.  Many of us (men and women) have been through the divorce process and understand just how petty and greedy these proceedings can become.

My main beef is with Bud Selig and the rest of the owners centers mainly on their greed.  The McCourt's divorce opened a window of opportunity for Major League Baseball and it's greedy little league of owners to take the team over.  They can even take the proceeds from a sale to a future buyer.

Back when Frank bought the team it was valued at nearly $430 Million and now the value has nearly doubled.  Frank McCourt is not from a blue blood family.  He is self made and never was welcome at the "Elite Table".  The MLB's ownership is literally a who's who of industry.  You don't reach such a lofty position if you haven't done at least 1/10th of the things Frank McCourt is accused of doing.  They have gone out of their way to make every avenue of his existence appear underhanded and shady.

This is about the league stepping on a little guy.  They could man up and help support this squad.  In fact the general public never needed to know these financial struggles ever existed.  We know because baseball wanted us to know.  They want this team and they want to pick and choose who is in the club and who is not. WE ARE TALKING ABOUT THE LA DODGERS HERE!

DOn't give me any BS about Bud Selig either.  Talk about a low-life.  This guy yields control of his team "Milwaukee Brewers" (as if that is non-arms length) and then promptly attempts to triple his viewership by retracting the Minnesota Twins (Thank god for unions, because had the players union not stepped up the team would be gone).  Once that fails he black mails the state of Wisconsin into building a new stadium (which his DAUGHTER OWNS..Yea Right) and her team is the only team to switch from the American League to the National League (which resulted in a gigantic financial turn around for the Brewers).  Then she sells the team for much much more than they ever would've gotten under regular circumstances.

They can paint this guy any way they wish.  Is he "man of the year"?  No, but he is a self made guy getting ripped apart by the very jackles that allowed him to invest. 



Since: Sep 16, 2007
Posted on: June 28, 2011 3:38 pm
 

MLB to offer Dodgers alternative financing

As far as the Dodgers go, wake me when the soap opera of the McCourts is over.  Until then I won't be going to a game nor following this story any farther. Frown


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