Categorized | Mark Timmons

No End in Sight

No End in Sight

According to a report by Bill Shaikin of The LA Times, Frank McCourt will allegedly make payroll on May 31st, thus stretching out a possible resolution to the Dodgers’ ownership issue and making Dodger fans even more miserable than they already are.  Shaikin also reported this:

Frank McCourt has said the contract is “completely negotiated” and “ready to be signed” and could be worth at least $3 billion. Jamie McCourt has alleged in court papers that the deal “may be below market” and could thus affect the value of the Dodgers, the couple’s principal asset.

Frank McCourt has replied in court papers that the deal “maximizes the value” of the Dodgers by providing the team with “market-rate” annual rights fees and an ownership stake in Prime Ticket. Frank McCourt has further argued that his ex-wife has no grounds to contest media rights deals that are within the “ordinary course of business” for team management.

Some fans complain that it’s not that good of a deal, that maybe the Dodgers could get a better deal, but the “market-rate” annual rights fees and an ownership stake in Prime Ticket makes that argument a moot point . Here’s the thing – If anyone thinks Bud can just get rid of Frank because the Dodgers’ Debt to Value Ratio is too high (54%), then they are forgetting that the Cubs, Mets, Rangers and Nationals all have significantly higher Debt to Value Ratios and that the the Cards and the Padres have about the same percentage as the Dodgers. Lots of teams are a mess right now financially and the Padres had the highest operating income last year. Look at the KC Royals and how they are run. Look at the Pirates. Their owners pocket millions and screw the fans on a regular basis and Bud does nothing.

So, the plot thickens and more time passes.  Yawn…

About Mark Timmons

When you see the invisible, you can do the impossible!

24 Responses to “No End in Sight”

  1. Badger says:

    If this man stays as owner, count me out.

    Somebody help me with something – didn’t McCourt sign a 10 year deal with Fox in 2004 as part of the financing package? If so, doesn’t that deal go through 2013? And if that is the case, why did he have to borrow $30 million from them at the beginning of the year? And isn’t it true that a great deal of this $3 billion 17 year deal that is proposed would go to pay Jamie and service a burgeoning debt load?

    Tell me this isn’t happening. MLB has to do something about this.

    People of L.A. stand up and be heard! Frank McCourt must go!

  2. Standing…………………McCourt you must go!

  3. MillaBlue says:

    There is obviously something very wrong with this guy. He is mentally disturbed. I’m not sure he even knows what battle he is fighting here.

    Money can destroy you. His ego is standing in the way of reality. Get out of our lives and retire somewhere in The Bahamas. Your ride is over. You are just embarrassing yourself.

  4. Bluefan says:

    Mark,

    One thing I am interested in finding the facts about is the deal with FOX.

    1. What are the terms of the package?
    – Years involved
    – $ per year
    – Total $ upfront
    – Where will the money go

    2. Who gets the ownership stake in Prime Ticket?
    – Frank McCourt
    – Dodgers

  5. Badger says:

    Two of us standing Half Full. I think we can expect a few more million.

    Well put MillaBlue. And very good questions BlueFan. I have my inquiries all over the place, including a note to Shaikin. We know some details of the deceipt and mismanagement of funds through what came out in the divorce, but I sure would like to know what Scheiffer is uncovering.

    Where is the current Fox money on the contract they already have with them? Has that 10 year deal expired already? Do I not have the facts right on that? And 1% of that 17 year deal was gone in a couple of months with the loan Frank got. That can’t bode well for McCourt’s case to move forward can it? The first couple of years of that deal has to go to Jamie. She wants nothing to do with that deal. She wants the team sold. I don’t blame her. Another couple of years goes to service the current debt load. I know I am not counting this stuff right, and I have nobody anywhere explain how all of this comes down. I have a feeling, like Mark said, nobody knows.

  6. Bluefan says:

    Badger,

    As far as I remember reading, the money McCourt got in December 2010 was an advance on the 2011 season’s contract. I have been unable to find any quote on how much the advance was, so we don’t know if the Dodgers still have any additional monies due this season from the TV contract signed back in 2004.

    TV money on the current deal’s remaining years (according to a Shaikin article) is …

    2011: $35 million

    2012: $37 million

    2013: $39 million

    He then took out a personal loan from FOX for $30 million in April 2011, after MLB (Selig) denied his request for a $200 million loan from FOX through the Dodger “Corporation”. That loan was secured by McCourt against any potential award from any lawsuit against his former lawyers at Bingham McCutchen.

  7. Brooklyn Dodger says:

    I think this dramatically changes the Mets’ debt to value ratio.

    http://losangeles.dodgers.mlb.com/news/article.js

    And here’s a few things not mentioned above.

    “McCourt could obtain at least some of that money by accelerating payments the Dodgers were due later this season….” Sounds like just more leverage to me.

    “The amount of money needed to meet payroll will increase in June, when the Dodger must pay Manny Ramirez more than $6 million in deferred compensation….” So maybe McCourt “hold[s] MLB at bay for at least two weeks while accelerating efforts to settle his divorce and secure approval of a broadcast contract with Fox that would serve as his financial lifeline.” And maybe Jamie’s side doesn’t cooperate in the settlement talks, and just maybe the deal really is below market value. I’m guessing that a well heeled new owner could establish a regional sports network without having to share the profits with a partner. And $3 billion, while it may sound like a lot, is probably below market value given the length of the contract. And if true, MLB probably has the people to make that case.

    “The person said that Fox’s plan not to move forward with the contract unless Jamie McCourt agrees not to challenge it has left Selig with the belief that he has no deal to consider.” Maybe the contract is “fully negotiated”, but perhaps it’s NOT “ready to be signed.”

  8. Badger…I just don’t see any amount of money fixing McCourt’s problem..The more he has the more it gets spent on the wrong things and goes to too many “non-Dodger” related issues.

    Frank has more deep related issues than just his finances…..

    He needs to just go away!……….now

  9. Badger says:

    Yes, all of that is my understanding to – and that means he is still borrowing against future revenues. This man will ALWAYS be in debt so how can this deal with Fox advance the Dodgers on the field? It just won’t happen. There will be no bailout money available for McCourt.

    Frank McCourt was wrong from the very beginning. I read this from a 2004 article in Sports Business Daily:

    http://www.sportsbusinessdaily.com/Daily/Issues/2004/01/Issue-82/Franchises/Eli-Broad-Offers-To-Buy-Dodgers-If-Mccourts-Deal-Falters.aspx

    A lot of business people knew McCourt was trouble and predicted this back then. Hammond gave him 3 years. He was off by 3 years, but he had it right.

    McCourt must go.

  10. Brooklyn Dodger says:

    Well, here’s one explanation of how Frank could meet payroll next week. Maybe it’s true and maybe it’s not. What is becoming abundantly clear is that barring a development that puts a whole new light on this situation, Frank just bought some more time on the road to a takeover.

    Fact is, none of us know what Frank and his legal team may have up their collective sleeves, nor do we know what MLB and its legal/accounting team may have up there’s. And we also have MLB investigation of Dodgers operations. That too may hold a few surprises within it. As fans all we can do is sit back a wait patiently, and hope for the best possible outcome, which most of us probably hope is the sale of the Dodgers

  11. Brooklyn Dodger says:

    Oops (I’m doing a lot of that lately), for to paste the link for my post above. Here it is:

    http://latimesblogs.latimes.com/dodgers/2011/05/see-all-the-dodgers-news-is-bad-frank-mccourt-to-make-payroll.html

  12. Brooklyn Dodger says:

    Oops again!!! I need to go to sleep. It’s been a long day.

    It should have been “forgot to paste…”, NOT “for to paste….”

    If I was Frank McCourt I would just borrow more than I could ever pay back, and hire the best medical team in the nation.

  13. Bill Russell says:

    Money won’t fix this mess because McCourt has lost the support of most fans. He can make payroll all he wants by begging, borrowing and stealing but the fans won’t support a liar and cheater. He’s got to go……………………………………..

  14. Bill Russell says:

    What happened to Buster Posey is a prime example of why you don’t want your best hitter playing as the catcher.

  15. Glass Was Half Full says:

    Unforunately a lot of us have finally seen the light. I know I wasn’t exactly a McCourt supporter but I was willing to give him the benfit of the doubt….

    I think most of us are all in agreement that money is not going to fix McCourts problems…..At some point you have to think about paying down the debit…..I don’t think it is in his MO……

  16. Badger says:

    I played some catcher and I always kept my mask on for those plays. I learned that from a catcher I ran into once – he put his face right in mine and I will never forget it.

    Having said that, maybe it’s time to take a look at that play. Home plate is the only base allowed to be blocked without the ball. Maybe that is the rule that needs to change? I don’t know but, if this ruins Posey’s career?…… not good. It would likely be a subjective call – you take out a defenseless catcher head first – you get thrown out and fined. Kind of like throwing at a batter.

    McCourt was wrong from the beginning and MLB now knows it. I am quite sure, with the fans and the owners backing this, McCourt will be escorted out of town. Yeah yeah, I don’t KNOW that, but that is the most logical conclusion.

  17. ted says:

    Memo to McCort.
    You are not wanted here.
    You are the most hated man in Los Angeles.
    You have turned a diamond into a lump of coal.
    Pack your carpetbags and get out of town.
    Have you no conscious?

  18. Michael says:

    Frank is a turd but he is going to leave some skid marks on the way down

  19. Michael says:

    Too bad about Buster but it’s part of the game.Of course I am old-school but change this and do you put an asterik next to Pete Roses name when he sent Ray Fosse to heaven?
    What would be next, suspending an infielder for deeking out a runner who slides and breaks his paw. C’mon man.

    Why should anyone believe Frank now. If his lips are moving, he must be lying.

  20. Roger Dodger says:

    Sorry folks. I was doing a report late last night returning from Houston, and our power went out for an hour and lost it all. Today, a bit ill from the trip and daughter and grandson arrived thus busy just existing.

    Will post remarks on the 2 games we saw in Houston and some pictures to Mark to post if he will. Got both HR swings of Kemp and Sands, also a few great fan shots.

    Michael – I talked with Ray Fosse several years after the Rose crash, and asked him just how he really felt about the hit. He told me that he was never the same. It not only changed his career, but he just could not produce after that. I met in Spring Training in Tucson, just 12 blocks from where I grew up. This was either 1976 or 1977 when he was with the Indians; they were still Spring Training in Tucson. We had a nice 15 minute talk out in the bull pen area along the left field foul line.

  21. Badger says:

    The Fosse incident is the one most people refer to. That was the case of Rose bearing down with intent on a vulnerable catcher. In an All Star game no less. OK you want to crash into catchers, give them pads like qb’s wear. And note to all catchers – leave your mask on and lead with your head. The message will get around and people will stop trying to take your head off.

    I heard back from Shaikin. He said the proposed Fox deal would essentially tear up the last two years of the current deal — it’s a 17-year deal or a 15-year extension, but Frank would get lots of money now, without waiting until 2013. He needs much, much more money than Fox owes him (under the current deal) in 2012 and 2013.
    So, it’s very much what we thought. Frank needs that money to get out of debt. How does that help anyone but him? Jamie gets a chunk, lawyers get a chunk, banks get a chunk and Dodger fans get treated like chumps. Anyone still showing up at Chavez for this circus is one.

    Goobye Paco. There’s the door, it’s the same one you slithered under in 2004.

  22. Brooklyn Dodger says:

    Jared, I’m sure you will report this in your minor league report. Webster to Chattanooga.

    http://web.minorleaguebaseball.com/news/article.jsp?ymd=20110526&content_id=19614378&vkey=news_t498&fext=.jsp&sid=t498

  23. Badger says:

    This is interesting:

    http://www.insidethebook.com/ee/index.php/site/article/posey_at_the_plate/

    It would appear that the runner is making no effort to get to home plate. He is a heat seeking missle looking to take Posey out with a head first crash. Posey isn’t even blocking the plate. (And, it appears he has his mask on at the time.)

    And there is a rule you can enforce. If a batter runner makes no effort to get to the base, and instead, with force and intent takes a defender out – batter baserunner shall be declared out, ball shall be declared dead and all runners return to the base last occupied.

  24. SpokaneBob says:

    Enforce that rule, but if we eliminate contact at home or second when breaking up a double play, we are changing the game in the same sad way our society is changing. Its bad enough that pitchers can no longer throw inside. The more the game is changed the less you can compare players of different times. How many homers would Hank or Willie have hit if Drysdale, Gibson and the like were not allowed to pitch like they did.

    Political correctness and the libs idea of “Fairness” is causing the wussification of our society. How long will it be before they stop keeping score and award partisipation trophys to all the players?

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