is said by Dennis Wasser, one of Jamie McCourt’s attorneys:
Photo from TMZ
“The chances of a settlement always get better as the case goes on. Both sides get pounded, and they get tired.”
Jamie is getting her a$$ handed to her.
There will be a settlement soon!
Mannywood and Mannymania – It was fun for a season!
In 2008, Manny arrived in LA and proceeded to take the Dodgers on his back and carry them to the playoffs. In 2009, he became a distraction, but was still a cog in the Dodger machine. However, this year it was his inability to stay off the DL that cost the Dodgers their chance for a record three years in the post-season. That, and Raffy’s extended stays there as well.
What happened this year was exactly what I feared when the Dodgers signed Manny for two years – and some people wanted the Dodgers to ink him for five? Manny may be productive for a couple of more years as a DH, but his time in LA had expired. I am sure Joe wasn’t playing him at the request of Ned to keep Manny healthy, but I doubt that Joe had to be prodded. Manny was still being Manny. Sometimes he didn’t hustle, other times he did. His fielding was the major concern and he didn’t appear to have fun anymore. Let’s face it, after his 50 game suspension, he was really never the same hitter – he had flashes, but he was not the difference-maker he once was. It was time for him to go and when the Dodgers had someone (ChiSox) step forward, his fate was sealed.
When he got thrown out of the game with the bases loaded yesterday because some Ignorant Savage named Gary Cederstrom, behind the plate called a pitch that was 8″ outside a strike, and Manny dared question him, I thought that Manny got himself ejected on purpose. However, after further review, I really saw no justification, other than the umpire was an Ignorant Savage! I won’t go into some diatribe about the umpires, but I will say that was over-reaction.
Speaking of over-reaction, the opposite was true of Joe Torre. He just sat there while Manny was ejected, serving out his time as Dodger Skipper barely going through the motions. I will be glad when this season is over and he is gone, hopefully with all the rest of the coaches. FREE TIM WALLACH!
The McCourt Divorce Trial Starts today and it should be interesting, unless a settlement is reached along the way. If one side or the other begins to feel the pinch, they will be motivated to settle. You just never know how a trail will go.
Me, I’ve got better things to thing about, like:
This just in from TMZ:
Los Angeles Dodgers owner Frank McCourt claims his wife, Jamie McCourt, diabolically tried to strong-arm him into showing his love by giving her a piece of the team — at the same time she was secretly consulting divorce lawyers.
In Frank’s legal brief, obtained by TMZ, the Dodgers owner maintains his wife signed over her interest in the team, in return for getting sole ownership of more than $100 million in homes.
Frank claims in legal papers Jamie never wanted to buy the Dodgers in the first place. According to Frank, Jamie felt buying the team in 2004 was a “risky business venture,” because the Dodgers had been losing millions and the deal was insanely leveraged.
Frank says Jamie — a lawyer who has drafted marital agreements herself — was more than happy to sign the marital property agreement that gave Frank the team and gave her all the homes.
But fast forward to 2008 … the Dodgers became profitable while the value of real estate began plummeting. According to the docs, Jamie came to Frank with a proposal: “If we’re going to be life partners, we’re going to be business partners.” Frank says Jamie wanted him to give her half interest in the Dodgers but she would keep most of the homes herself. Frank smelled a rat and said no.
Frank claims Jamie was stricken with celebrity-itus and wanted a piece of the team, calling it “her ticket to become the mayor of Los Angeles, the Governor of California, and maybe even the President of the United States. To create the fairytale of ‘Brand Jamie,’ she recognized she had to rewrite history.”
Tune in to TMZ on TV weekdays Monday through Friday (check http://www.tmz.com/tmztv/ for syndicated/local listings)
I think you are starting to get a glimpse of what Frank’s case is going to look like, and Frankly (no pun intended), Jamie is probably going to be toast!
Before this season started and “The Divorce” was in full swing, many readers and fans held Arte Moreno up is as an ideal owner, and held Frank
McCourt up as a “scumbag owner.” Now, on August 24, 2010, both Dodgers and Angels fans find themselves in just about the same predicament: The Dodgers are one game over .500 and out of the pennant race (and wild card race), and the Angels are one game below .500 and out of the pennant race for all practical purposes.
It could happen to anyone.
The Yankees have spent over $2 billion on payroll since 2000 and have only one World Series Championship to show for it.
It could happen top anyone.
The Red Sox, whose GM is touted as among the smartest in baseball and have a payroll of over $160 million are also out of it for all practical purposes.
It could happen to anyone.
That’s what losers say. I prefer to say that while it can happen to anyone, the good teams make sure that it doesn’t happen to them again.
Nothing is so constant as change and unless the Dodgers are insane (insanity is doing the same thing and expecting different results), they need to make some big changes. While those changes can’t all me made immediately, the white flag needs to be raised and the purge needs to begin. 12 games have been overcame in less time, but not with this team. This is a team whose biggest question going into the season was lack of starting pitching. Even the naysayers who predicted a .500 record said they didn’t doubt that the team would score runs.
Well, they haven’t scored – at least on the field! Since the All-Star break the Dodgers have averaged about 3 runs a game. That in itself, is horrible, but then the bullpen imploded and blew nearly every winnable game. Surprisingly, the starting pitching has been solid. The lack of hitting and lack of a bullpen has killed the Dodgers. I also think there is one other factor: The Manager and Coaches Have Lost This Team!
When it happened, I don’t know.
How it happened, I don’t know.
Look, Joe Torre is nor a cerebral manager. He is a Hall-Of-Famer, but sometimes being a Hall-of-Famer is just being in the right place at the right time. Maybe Joe Torre was the perfect manager for the Yankees and their big contracts and big egos and the bigger pressures of playing in NY. I am not going to take away his HOF status, but this team has quit on him.
Speaking of being in the right place at the right time, I wonder if we would look at Hall-of-Fame quarterbacks differently if Dan Mario had played for the 49′ers with All-Pros 2 or 3 deep at every position and an offensive genius as a coach, and Joe Montana had played for the Dolphins with no running game and few All-Pros. Time and place are everything.
Ned Colletti is part of the problem. He has done some very good things and also some very bad things in his tenure. I believe he deserves another year, but the last time the Dodgers had such a disappointing year, both the GM (Paul DePodesta) and the Manager (Jim Tracy) were shown the door. That’s possible here as well, but I would give Ned another year, because he seems to learn from his mistakes, James McDoanld and Blake DeWitt notwithstanding. In my opinion, this year is a bigger disappointment, because of the level of talent on this team.
Joe Torre and Company need to be shown the door. We don’t need a manager who is ineffective as a hitting coach, and our pitching needs a fresh approach. The new manager needs to be a younger guy (in my opinion) and needs to be someone who can “work a room.” He needs to be a motivator, a disciplinarian and a tactician. Could that guy be our backup catcher? Maybe. Maybe not!
I just know that change must come. How sweeping it is needs to be determined soon. At this juncture, Ned should make sure that Manny, Blake, Kuroda, Lilly, Theriot, Podsednik and Broxton are all on waivers. The Dodgers could get lucky on one or two of them.
Russ Martin may never return and Loney, Kemp and Ethier have not blossomed as they should have. It could happen to anyone is something that I will not accept as an excuse.
It’s time to turn the page!
I find this so crazy that I’ve got to start a new post for this.
John Tyler Photo via Baseball America
On August 11, 2010, Marc Lancaster of Fanhouse reported this:
Remember when the Dodgers were one of baseball’s most respected franchises? Yeah, it’s difficult to take them too seriously these days given some of the shenanigans in which they have participated the last few years under the auspices of the McCourts.
Well, it appears they’re at it again. When the Dodgers used their first-round pick on Texas high school pitcher Zach Lee back in June, just about everyone immediately pegged it as a cost-saving move, given that Lee was a mortal lock to attend college at LSU. The Los Angeles front office said all the right things at the time, but if this story is to be believed, drafting Lee was exactly what it seemed: L.A. picking a guy it knew wouldn’t sign, thus saving a few million this year and picking up a compensatory pick in next year’s draft — when more cash might be available at Chavez Ravine — for good measure.
Lee was one of the top quarterback recruits in the country and has been in Baton Rouge since the day after the draft, apparently focused on nothing but preparing for the upcoming football season. That probably would have been his focus anyway, but it helps that, according to Lee, he hasn’t heard from the Dodgers since draft day.
“I haven’t really heard anything from them,” Lee said. “As far as I’m concerned, I’m here to stay until something else happens. And I don’t really see it happening.”
Like lots of Frank McCourt haters here, Lancaster was castigating McCourt for taking a draft pick that he had no intention of signing. Then out of the clear blue sky, the Dodgers signed Zach Lee for a whopping $5.25 mil. So, there is joy in Dodgertown, right? Wrong! The Frank McCourt haters, who of course are the same people who said he wouldn’t spend money to sign draft picks, let alone Zach Lee, now are spinning a different story, and say that McCourt decided to overpay by $3 or 4 million as a PR move. These people may be smart, but their hatred of Frank McCourt has overridden their common sense, and all I can say is that’s about the lamest thing I have heard in a long time. Oh, and they are saying that the Dodgers overpaid for a player who really wasn’t that good anyway – that he wasn’t Top-of-the-Draft material. WOW!
Let me address that last part first. MLB.com had this to say about Zach Lee:
With above-average to plus stuff across the board — fastball, slider, changeup — good command and tremendous athleticsm, Lee should be one of the high school arms being mentioned up close to the top of the Draft, or at least on a short list of top high school arms. If he’s not, it’s largely because of one thing: signability.
Jim Callis of Baseball America said this:
Remember, bonuses are based on talent and leverage. Lee had more leverage than just about any player in this draft, because he’s a gifted pitcher who was also a top quarterback. You could make a case that Lee was the second-best high school pitcher in this draft behind Jameson Taillon. If money weren’t a factor, I bet he would have gone 10-15 picks higher in the draft.
When asked how he compared to Kershaw and Billingsley, Callis said:
Behind Kershaw and ahead of Billingsley. Lee is a potential frontline starter. Projectable, athletic righthander with sharp stuff.
BA went on to name the Dodgers winners in the draft, not just because of Lee, but because of their other signings as well, some of which were paid significantly well over MLB slotting.
Tallion went #2 in the draft and got $6.25 mil, but he did not have the leverage Lee did. So, if the Dodgers wanted to make a good PR move, why draft the guy who was deemed the most unsignable? Why not draft a guy like the Angels or Giants or Rockies and pay about $1.4 to $2.3 mil? McCheap could have saved $3 or so mil. It was a big risk to draft Lee and it did take over $5 mil. They didn’t draft Lee because they wanted good PR – they drafted Lee because he was a Top 10 talent who they could get at #28 in the draft. That was a smart move, not a PR move. Get 20 good knowledgeable baseball fans in a room and spin that story on them and they will laugh you out of the room!
But the McCourt bashers, who would have bashed McCourt if he didn’t sign Lee, now bash him because he did sign him. You guys are just never wrong. You always get it right no matter what Frank does. It just find it so pathetic that everything he does has to be explained in a negative light. I don’t particularly like the guy, but Lee was drafted to be signed and you McCourt bashers were piling on that the Dodgers would not sign Lee, and now that they have, they only did it for the PR? Come on. You have to be smarter than that!
The Dodgers drafted Zach Lee because he was probably the 2nd best high school pitcher in the draft and you will probably see him at a Ravine near you around 2012!
Of course, anything is possible, but being 11 games out of first place on August 17th is not a good position to be in. It’s highly unlikely that the
Dodgers can advance to the playoffs for the third straight year. There are a variety of reasons for this, but the not the least of which is the disconnect between the coaches and the players. Joe Torre and Company are not known for being brilliant strategists, and that issue was readily exposed this season. In my opinion, none of the coaching staff should be back. There needs to be a clean sweep. I would give Ned Colletti one more year. I think he has learned a lot, but I still think giving up James McDonald for Dotel was a bonehead move. I believe that James McDonald IS BETTER RIGHT NOW than Octavio Dotel. Giving up Santana was a little more understandable (and the jury is out on that one – I’m not saying it was smart), but McDonald was boneheaded! I liked Blake DeWitt, but that wasn’t a big deal. The Dodgers do have to decide what to do with Theriot and Lilly however.
Now, since the Dodgers are effectively out of the race, what happens over the next two weeks will help define their future. Contrary to the naysayers, who said McCourt wouldn’t spend big on the draft, the Dodgers did just that and broke the bank to sign Zach Lee. As Jared mentioned, those of you who doubted Logan White’s veracity should be ashamed! If the Dodgers had offered arbitration to Wolf or Hudson, and one (or both) had accepted, there would have been no Zach Lee signing, and to those who said that they would not have accepted arbitration, I say: ”You also said McCourt would not pay money for draftees – you have no credibility!”
Now, I freely admit that Frank McCourt has some problems and I think he really has taken too much money from the Dodgers and that his lifestyle is too decadent, but I don’t have all the inside info. That’s not something anyone has. I also see all the things he has accomplished and I believe Dodger Fans have an owner who is in it for the long haul. ”The Divorce” looms large and will go a long in determining the Dodgers future. It will be interesting as to what happens, but I believe Frank is in the “drivers’ seat.” That is speculation on my part and I won’t spend much time saying much more because speculation is not worth ZIP! We just have to wait and see what happens.
I will preface what I am about to say, by stating that the Dodgers are capable of reeling off a 15 game winning streak!
Matt Kemp's Addiction
CHAD BILLINGSLEY ROCKS!
DODGERS PRESS RELEASE
RIP Boss
“George was a friend who I admired very much. He was a giant in our game and he built an empire. All he was was a winner. He wanted to give the fans a winner, and that’s exactly what he did.” - Dodger Hall of Fame Manager Tommy Lasorda
“I will always remember George Steinbrenner as a passionate man, a tough boss, a true visionary, a great humanitarian and a dear friend. I will be forever grateful that he trusted me with his Yankees for 12 years. My heart goes out to his entire family. He will be deeply missed in New York, Tampa and throughout the world of baseball. It’s only fitting that he went out as a world champ.” – Dodger Manager Joe Torre
“I am deeply saddened to hear the news of George Steinbrenner’s passing. His vision, passion and commitment to winning, recharged the New York Yankees and revolutionized the game.
I remember a man driven to succeed. He was the owner, “The Boss” and number one fan of the Yankees. Our relationship was built on mutual respect. I will never forget and always be grateful for how he treated me and my family both during my playing days and after I retired.
I will miss him very much and extend my deepest condolences to his wife, Joan, and all the members of the Steinbrenner family.” – Dodger Hitting Coach Don Mattingly
“George Steinbrenner was the first owner to contact me to congratulate me when I purchased the Los Angeles Dodgers. From that day forward we built a strong and meaningful friendship. He was a larger than life owner who cared deeply about winning. George helped shape the game of baseball during his incredible stewardship of the Yankees. My deepest sympathies go out to his wife, Joan and his four children, Hal, Hank, Jennifer and Jessica and the entire Steinbrenner family.” – Dodger Owner Frank McCourt
Suddenly, the Dodgers starters look to be as good as any in baseball and Chad Billingsley is at the forefront.
Without belaboring the point, he is simply evolving into a very, very solid pitcher.
Tony Jackson of ESPN/Los Angeles has part of the reason why:
The turning point was that well-chronicled meeting with manager Joe Torre and pitching coach Rick Honeycutt the day after Billingsley was knocked around in Cincinnati on April 20. Billingsley lost his next start, five days later in Washington, but he lost it 1-0, and Honeycutt said that was when he saw the first signs of what he is now seeing on a regular basis from Billingsley.
“We saw a more consistent arm slot,” Honeycutt said. “We really just wanted him to get back to what he should be, and that was the basics, fastball-curveball. I didn’t want him to give up the cutter entirely, and he threw a few of them tonight. But we wanted him to get away from throwing it too much. It was a pitch he was using too much, and with that, he was changing his mechanics sometimes in order to throw it.”
By using it now as more of a “show-me” pitch, used on rare occasions just to give the other team something to think about, Billingsley is able to maintain the consistent mechanics he uses to throw all his other pitches. For now, he appears to have hit on that secret formula he had tried for so many years to find. As a result, he has become a pitcher who not only is supremely confident in himself, but who fosters extreme confidence on the part of the rest of the club whenever it is his day to pitch.
The team looks supremely confident… except when a ball is hit to LF – you never know what can happen with Manny!
It looks like Josh Fisher who writes Dodger Divorce has finally realized what I have been saying all along. Here it is in part:
It goes without saying that the ownership situation is messy now. Even as a happy, intact family unit, selling the Dodgers would require the McCourts to untangle a string of affiliated companies and debt facilities so complicated it’s taken several months of expensive discovery just to unveil them. Should Jamie win half the team or a cash award so great the team must be sold, it’s going to happen at a discount, and an entity which might not have the wherewithal to operate the Dodgers would be encouraged to bid. Sound familiar?
The impassioned cries for Anyone Else are understandable, reasonable, and entirely defensible. But I’d urge everyone to consider just what that means: several likely years of turmoil. The sale itself would be an arduous, difficult process, and the new owner would likely experience significant growing pains. What’s more, there are just fewer folks out there right now who can afford a baseball team than there were three years ago. A fresh start has its advantages, to be sure–especially if whoever’s next is a true Southern Californian. But it’s likely to be a long, painful slog.
There is a significant possibility that the right answer for the long term is Frank McCourt. It’s hard to argue with the team’s success during his regime, and all indications are that he has moved past the perilously-thin margins characterizing the early days of McCourt ownership. The team is profitable, the fans are still engaged, and there is room to grow. Perhaps, with the financial strictures of the divorce behind him, he’ll be able to invest in the future of the organization, addressing shortcomings of the last few years. The TV rights come back in-house after the 2014 season, which will make the Dodgers all the more valuable. And, if things don’t work, a sale several years down the line will be without the urgency that would dramatically devalue the club in a sale this winter.
I’m not ready to throw my full support behind Frank just yet. Emotionally, it’s difficult to embrace a figure who has brought so much negativity to the Dodgers. But maybe that’s my point: there is no panacea here, no cure-all. Clamoring for Anyone Else is emotionally and philosophically justified, but we should be careful to remember that Anyone Else comes with problems, too. And this is where we come back to the divorce as a test case for fans’ attitudes towards their teams: what do we want?
If we want a fresh face we can relate to, an owner for whom the Dodgers are the reason to exist, an owner who truly understands what the Dodgers mean to Los Angeles, then yes: Anyone Else could be that owner. But Anyone Else could also be a relatively faceless group of investors that sees the Dodgers as a vehicle for growing and accumulating wealth. The team might be available for a song this winter, and those TV rights are so close you can taste them. Anyone Else might be everything we’ve grown to distaste about Frank McCourt, but at least he’s cut his teeth as an owner.
If we want to win above all else, Frank McCourt could be the answer. He’s got more money than even his wife knew, he’s had some experience in figuring out what works and what doesn’t, and he’s learning how to stay out of the way. And there’s another factor at work, here, too: should he come out of this mess with the team intact, he’ll needto win. It’s the only way back into the fans hearts (and wallets). I know it, you know it, Frank knows it. Say it along with me, Frank, “The difficult events of the last several months have made me reconsider my priorities, and after my sons, the Dodgers are the most important thing in my life.” And so begins the rest of the McCourt era. If, over the course of several years, Frank’s actions match his words, everything is forgiven.
It’s with a great deal of reluctance I sing the praises of Frank McCourt, Potential Long-Term Solution. And, obviously, whatever degree I support Frank is based only on what we know; yet more skeletons may lurk. But my interest in the entire fiasco has never been about Frank or Jamie, pools or jets, stadiums or campaigns. It’s always been about the Dodgers.
So, for the moment, I’m not going to write Frank off. However these next few months play out, my end-game is the same: I will support the candidate best able to sustain an organization I can be proud to call my own. As it is with analysis, the past only matters to the extent it colors the future. And, for everything that’s happened, I’m not sure the future is better left to Anyone Else than Frank McCourt. Not quite yet, anyway. Lord knows we’ve got plenty of time to sort it out.
Let me translate that for you: If Frank sells the Dodgers, the odds are it will be another 10-20 years before the Dodgers win anything. Frank McCourt is our next best chance. So quit wishing for a new owner, because if that happens, it will probably mean disaster for the Dodgers.
Many of you had the Dodgers dead and buried a couple of weeks ago (no, I am not going to just let it go – you need to learn a lesson) and now they are red-hot-on-fire-the-hottest-
Excellent Defense
team-in-baseball! Like it or not, here is what you are seeing:
I am accused of seeing the baseball world through “BLUE” glasses and while I bleed Dodger Blue, I also have my eyes wide-open. This Dodger team has warts. It lacks a true ace (as yet) and it is young. Some of our subs are old and some call them “geezers” but did you see the ages of the “Geezers” who won the last World Series? Look it up!
However, I knew that this team would be “hungry” and want to win. You have a few players who have experience and are of an age that they need to win NOW. Players like Blake, Manny, Raffy, Belliard, Johnson and others. Then you have the young bucks, like Kemp, Loney, Martin, Ethier, DeWitt, Broxton, Kershaw, Billingsley, Ely, Kuo, Belisario, Ellis and others who are trying to make a name (and fortune) for themselves.
Like it our not, Ned has put together a pretty effective team and I would not be surprised if Vicente Padilla wins 12 games! Write that down. He is motivated! Charlie Haegar may still surprise us.
Lindblom, McDonald, Paul, Hoffman, May, Hu and others are at-the-ready.
You can continue to moan and bitch about the McCourt fisaco, or you can focus on the team and this team is REALLY GOOD… just like I told you two months ago!
You can believe what the fish hacks say (“Joe is tired of the McCourt penny-pinching and wants out”, “the Dodgers won’t spend any money”) or you can face reality. Yes, you will get a lot of info from the “fish hacks” but their conclusions are often erroneous. Think what you want about Joe Torre, but do you really think he’s going to tell his friends and fish hacks anything confidential?
Use your brains, people! Critics are everywhere, and critics are just people who criticize people about things they can’t do themselves! They are “small” individuals.
The Dodgers haven’t swept the Padres in San Diego, since George Washington was in the White House!
Celebrate!
While still leading all of major league baseball in hitting at .277, the Los Angeles Dodgers are quietly lowering their team ERA and raising their 
fielding percentage. They have climbed from 15th to 12th in fielding and have shaved almost a run off their team ERA. It now sits at 4.63… and dropping. The Dodgers have now won 5 in a row and 6 out of their last 7 games, causing the McCourt bashers to disappear because their BS doesn’t play well when the Dodgers are winning. A lot can happen in baseball, and while I can’t predict that the Dodgers will win it all, I still say they are capable. The Dodgers have as good a chance as any and a better chance than most teams to make it to the Wold Series.
Many of you were piling on early in the season, when practically the entire pitching staff was “blowing up” and the team fielding was deplorable. You said stuff like:
I can’t believe some of the silly (ie., stupid) things that are said by some of you. Maybe what I said was stupid too when I wrote that the Dodgers should fire Torre and Honeycutt, but I said it because I KNEW that this team was capable of winning it all and surmised that it had to be the manager and coaches. Now that they have turned the corner, I will lay off, but some of you need to get a grip. THIS IS A VERY GOOD TEAM. If you think the Padres will continue to have a 2.60 team ERA, you are silly. If you don’t think the Dodgers will drop their team ERA to below 4.00 very soon, you are even sillier. The NL West has some good teams, but the Dodgers are still as good, probably better than any of them.
I am beginning to think that some of you love to bash McCourt more than root for the Dodgers, because you disappear when the Dodgers win. For the last time, Frank McCourt is irrelevant to me. I don’t like him. I don’t hate him. While I wouldn’t live my life the way he does, that’s on him. The Dodgers have been to the playoffs for two straight seasons and if they make it this year it will be an accomplishment that has never been achieved in the history of the franchise. So, are you on the Bandwagon or do you just enjoy bitching? Do you enjoy winning or whining? Climb aboard!
RANTS & RAVES
On April 7, 2010 Forbes announced their annual MLB Team Valuations. As we all assumed, the NY Yankees are the most valuable team for the 13th strait season. Not only did Forbes announce their estimated values for each of the 30 MLB teams, but also their estimated Operating Income, Total Revenues, and Debt to Value (From which we can estimate total team Debt) The Texas Rangers have the highest Debt to Value percent of 105% and are the only team that is “under water”. The Dodgers have the 6th highest Debt to Value percent along with the 4th highest Team Value and Operating Income. However, “Operating Income is a deceptive term because it does not include a deduction for Interest Expense, Depreciation, Income Taxes, or Amortization.
Below is my interpretation of the Forbes data in a manner and format that generally follows the MLB Team Debt Rules included in the MLB Agreement. Unfortunately, the information provided by Forbes, even considered in the best light, shows that the Dodger Team financial position is most likely only 4th best in the NL West. Arizona had negative Operating Income in 2009 and therefore was not included in the presentation. Taken in the best light, the data shows that there is a possibility that the relationship between the LA Dodgers Debt and Operating Income has caused the team to be monitored and their activities partially restricted in some manner by MLB. Thus the payroll restrictions are more likely a result of the Debt load, which is partially a function of the pre-divorce lifestyle of the Dodger owners, as opposed to the payroll being restricted due to the impending divorce.
| 4th | 9th | 15th | 19th | ||||
| LA Dodgers | Giants | Padres | Rockies | ||||
| A | Data Per Forbes | ||||||
| B | Estimates Per Ken | ||||||
| Current Value | A | $727,000,000 | $ 483,000,000 | $ 408,000,000 | $ 384,000,000 | ||
| Debt Ratio | A | 58% | 26% | 49% | 21% | ||
| Estimated Total Debt | $421,660,000 | $ 125,580,000 | $ 199,920,000 | $ 80,640,000 | |||
| Excludable Debt: | |||||||
| Estimated Deferred Comp | B | $ 20,000,000 | $ - | $ - | $ - | ||
| Estimated Construction Loans – Camelback | B | $ 30,000,000 | $ - | $ - | $ - | ||
| Mandatory Exclusion | $ 36,500,000 | $ 36,500,000 | $ 36,500,000 | $ 36,500,000 | |||
| Total Excludable Debt: | $ 86,500,000 | $ 36,500,000 | $ 36,500,000 | $ 36,500,000 | |||
| Includible Debt | $335,160,000 | $ 89,080,000 | $ 163,420,000 | $ 44,140,000 | |||
| Operating Income (2009 EBITDA) | A | $ 33,100,000 | $ 23,500,000 | $ 32,100,000 | $ 20,100,000 | ||
| Debt Multiplier | 10 | 10 | 10 | 10 | |||
| $331,000,000 | $ 235,000,000 | $ 321,000,000 | $ 201,000,000 | ||||
| Estimated Excess Debt | B | $ 4,160,000 | $(145,920,000) | $(157,580,000) | $(156,860,000) | ||
| Operating Income (2009 EBITDA) | A | $ 33,100,000 | $ 23,500,000 | $ 32,100,000 | $ 20,100,000 | ||
| Estimated Depreciation | $ (6,000,000) | $ (1,000,000) | $ (1,000,000) | $ (1,000,000) | |||
| Estimated Interest Expense @ 6.5% | $(27,407,900) | $ (8,162,700) | $(12,994,800) | $ (5,241,600) | |||
| Taxable Income (Loss) | $ (307,900) | $ 14,337,300 | $ 18,105,200 | $ 13,858,400 | |||
Based upon the Forbes data, and traditional financial estimates, the Dodgers did not have taxable income during 2009. One obvious opinion is that creative tax planning was not the cause of the LA Dodgers paying no income taxes, rather the large interest deduction.
Frank – We welcome your providing the fans with a full and accurate disclosure of the LA Dodger consolidated financial Statements and the financial discourse package annually sent to Bud.
Written by Ken who is an attorney, MBA and CPA.
Miscellaneous MLB Team Financial Information 2007 – 2011 Basic Agreement is 241 pages long and expires on Dec. 11, 2011. - http://mlbplayers.mlb.com/pa/pdf/cba_english.pdf
Are The Dodgers In Danger
Although many of the provisions relate to the players, some provisions relate to the financial operations of the teams. One such provision relates to the level of debt that a team is allowed to incur. In my opinion, the provision contains many definitional hurdles and exceptions that allow a team to obtain unsustainable levels of debt that a typical private enterprise would never attain to unless they were approaching or trying to prevent or postpone insolvency status.
ATTACHMENT 22 - DEBT SERVICE RULE
No Club may maintain more Total Club Debt than can reasonably be supported by its EBITDA. A Club’s Total Club Debt cannot reasonably be supported by its EBITDA if Total Club Debt exceeds the product of the average of that Club’s EBITDA over the most recent two years multiplied by the Cash Flow Multiplier [10 or 15 times] applicable to that Club; provided, however, that a Club may elect, on or before April 1, 2007, to utilize, in both 2007 and 2008, the average of its EBITDA over the most recent three years.
So in other words, each year as the Dodger team borrows additional funds, they must increase their EBITDA by cutting costs, deferring payroll to future year(s), increasing revenue, and/or accelerating future revenue into the current year. Therefore, the McCourt’s’ life style during marriage could actually be the reason that the payroll is dropping not their Divorce. Therefore, Frank may well be correct when he says that the Divorce has no effect upon the Dodger 2010 team payroll.
“EBITDA” means a Club’s earnings for its fiscal year, before interest, taxes, depreciation and
amortization, as calculated and reported in accordance with Part I, Schedule I, Section D, Line 45 of the annual Financial Information Questionnaire (“FIQ”), which each Club must submit to the Office of the Commissioner after the close of each fiscal year.
So in other words, the high level of depreciation on the property and equipment; and the high level of interest payments are added back to the preliminary earnings in order to determine the Team’s income for determination of solvency for purposes of evaluation by Commissioner Selig’s office. The higher the level of depreciation and interest, the higher the possible level of angst by the commissioner’s office when they see how the letter of the rules may not have been drafted in a manner to comport with the spirit of the intended insolvency prevention rules.
“Total Club Debt” means a Club’s total outstanding debt, calculated as an average over the course of each fiscal year, including without limitation all long-term and short-term obligations and all indebtedness resulting from:
(1) funding from Major League Baseball’s industry credit facility;
(2) other third-party debt;
(3) deferred compensation (other than deferred compensation payable to Major League Players (see clause (8) below));
(4) stadium-related debt incurred for or in connection with ballpark construction or improvements; provided, however, that any debt falling within this clause (4) shall not become part of Total Club Debt until the first full season of the operation of the new or renovated stadium for which such debt was incurred;
(5) loans or advances from related parties, but only if those loans or advances are collateralized by the assets of the Club;
and (6) any other debt that is properly classified as an indebtedness of the Club under generally accepted accounting principles, but excluding
(7) the Excludable Debt and
(8) any compensation payable to Major League Players, including deferred compensation or any other commitment under a Uniform Player’s Contract, or any obligation to the Major League Baseball Players Benefit Plan or the Industry Growth Fund.
In 2007, “Excludable Debt” shall be the first thirty-six million, five hundred thousand dollars ($36,500,000) in outstanding debt from any of the sources described in clauses (1)-(6) above and shall grow in each succeeding year by the percentage growth in the industry’s total operating revenue (as defined in Part I, Schedule I, Section A, Line 12 of the FIQ) from year to year. The Cash Flow Multiplier shall be ten (10), except that any Club which incurs (or has incurred within the last ten years) stadium-related debt to finance construction of a new ballpark or the major renovation of its existing ballpark may use a Cash Flow Multiplier of fifteen (15) for the first ten (10) fiscal years after that ballpark’s opening or re-opening.
So in other words, Not All Debt is Debt! Debt that is not counted would include:
We can only speculate regarding whether the Los Angeles Dodgers are in compliance with the above rules by a whisker or a mile, but we may well find out in August when significant financial information will most likely be available. However, when I read the above MLB rules I now understand the possible reasons that certain decisions have been made by Dodger management.
Section 4 of Attachment 22, provides for 16 remedies that may be utilized by the Commissioner’s office, for the benefit of MLB and the players, when a team is not in compliance with the terms of the Agreement. Unfortunately, one such remedy is the prohibition of a team from making any capital expenditures without the Commissioner’s approval. Is this remedy the reason that the Dodger’s postponed their most recently planned renovation? Only time will tell. Another remedy is the ability of the Commissioner to require the owner(s) to personally guarantee the Team’s debt. Is Jamie willing to do this now or is she just playing poker? Is this remedy on of the reasons that the McCourts signed a post nuptial agreement?
In summary, I have expressed my opinion several times that there is a low probability that the Dodgers will spend significant sums on player salaries until there they are able to receive the necessary economic benefits from the ownership of a cable network. I certainly hope that the Dodger’s team financial situation does not prohibit them, or their owner(s) from being able to finance the startup and operation of a Cable network.
GO DODGERS!!!
Written by Ken, who is a CPA, MBA and an Attorney. He is LAdodgerTalk’s Staff Attorney, CPA, MBA… and “worry-wort” . I have always wondered if they are worrying about your assets, or how they can get your assets. [This is a public service announcement by Mark.]
… nor am I a hater. I see the good he has done as the owner of the Dodgers. I see the mistakes he has made as well. However, he seems to have learned each time he makes a mistake. Overall, the Dodgers are in much better shape than when he took over. His lifestyle seems excessive – in my business, I work with the rich and famous and don’t really care about all their “stuff.” My “stuff” is fine. If I had their money, I wouldn’t live the way they live… but that’s just me. If they want to live excessively (my opinion) that’s their gig.
However, I am sick of this Dodger Divorce. It’s a soap opera and I will no longer talk about it until the case is decided. I’ll take it a step further – I’ll delete any posts or comments on this issue. I don’t want to hear about it. It’s something I don’t care about. I don’t care about “what if.” I care about “what is.” The Dodgers IS.
That’s what I want to focus on: The Dodgers. The baseball part of the business. The players. The coaches. The minor leagues. That’s all. If I can’t do that, I’ll shut this blog down.
This is a Dodger blog – not a McCourt blog. I don’t want it. I won’t have it and I’m done with it. “Frank, I don’t live for you, and hopefully you get that.”
This blog is about Matt Kemp, Jon Broxton, Eric Gagne, Chad Billingsley, James Loney, Clayton Kershaw, Casey Blake, Rafael Furcal, Andre Ethier, Russell Martin and all the rest of the boys.
I am not against Frank McCourt… nor am I for him.
Whatever happens, happens – the Dodgers will thrive, or survive under Frank McCourt.
This is a Dodgers Zone!
Nothing else!
Lawrence Delevingne, a writer at The Business Insider, sent me this link to his article The Nastiest Billionaire Divorce Ever: Jamie And Frank McCourt. It deals with the facts and not the rampant speculation that some of you state as facts. It’s a worthwhile read, if you want to know all the players in this process.
Dodger Stuff:
My 2 Cents:
Baseball seems to put Spring in your step when Spring is in the air. It’s been a long, cold winter here – I usually enjoy the winter, but my surgeon told me that the first winter would be rough on my hip and it has been a bear. Stiff, sore and constantly aware of it, I am. I am counting the days until Florida – March 7th, and then Camelback on March 20-27th. I will have the Spring back in my step when the Boys of Summer start reporting tomorrow.
“Pitchers & Catchers, Start Your Engines.”
Here are a few things to chew on until then:
“The reason (we didn’t offer arbitration) was we thought he would take it. At $12-13 million a year, we weren’t prepared to do that. And you know what, the people I’ve talked to since, that are very close to him, say that ‘You know what, he would have taken it.’ And I wasn’t prepared to pay him $12-13 million for one year, nor was I prepared to pay him $8 or $9 million for three years.”
Now, I suppose if you have been in the camp where you have accused McCourtof being Cheap and now wanting to sign draft picks (which is absurd) you now have the options of choosing one of three responses in order to save face, especially after what happened with Orlando Hudson:
You pick it!
Gagne received offers from the Dodgers and Colorado Rockiesafter separate throwing sessions in front of club officials, although multiple sources said his session for the Rockies was underwhelming. Not that it mattered, because Gagne had made it clear to the Dodgers that he preferred to pitch for them.
The move carries virtually no financial risk because it includes no guaranteed major league money unless Gagne makes the club in spring training, and it is difficult to envision him accepting a minor league assignment if he doesn’t. The deal contains an escape clause, allowing Gagne to again become a free agent if he doesn’t make the team, something that is fairly standard for minor league deals signed by major league veterans.
They say you can never go home again! Who is “They?”
… and nothing but the truth! That’s why you come here, because I am going to tell you the truth. God knows it’s not because I’m a writer. At any rate, let’s consider the following and see if what is happening is true or false.
True or False: Ned Colletti, Frank McCourt and Dennis Mannion have all been “singing out of the same hymnbook” that it’s business as usual for the Dodgers”?
Answer: True and False! It’s true that it is “business as usual,” but the “business model” has been changed, so that’s false. Let me explain. Ned has made some acquisitions the past few years which have not proven to be (how should I say it?) prudent (how’s that?). Now, under some circumstances, he might be fired, but not in this case because Frank McCourt, as the new owner of the Dodgers was trying to make an impact and the signings of Pierre (I love Juan Pierre, but he was a bad signing), Schmidt, Jones and Manny were all approved (or even “pushed”) by Frank. So, Ned does not bear all the culpability for those bad deals, and Frank and Ned have come to an understanding: Frank will be an owner and Ned will be the GM. Frank has also assured Ned that if he needs more funds to sign a player, he can feel free to come to Frank for more money. Frank wants to keep the payroll at around $100,000,000 this year, but after the May hearing, he will have a better idea if the Dodgers can be buyers in August and he thinks they can.
The truth is that the Dodgers have a very good team this year. Maybe it has escaped some of you, but they have some extremely good young players who have gotten better (much better) the past three years. Even our oft-maligned catcher is rated 4th to 7th in most Fantasy Leagues. If you can’t have Joe Mauer, the 4th to 7th best Catcher ain’t so bad! We have some young pitchers who are suddenly just going to “get it.” BANG! Our aces-in-waiting will become our aces. None of this is lost on savvy baseball people, but it is lost on some of you.
Forget the TOP 100 or TOP 50 Baseball Prospects. Ethan Martin is in the Top 50, but I think we have 4 or 5 others who are better than him- Aaron Miller, Chris Withrow, Garrett Gould, Josh Lindblom, Alan Webster and Nate Eavoldi may be among them. Think Andrew Lambo’s stock has dropped? Keep thinking that! Watch him rake this year. Dee Gordon? This kid has “star”written all over him!
What about the big club? Why did we sign Jamey Carroll only to sign Ronnie Belliard a few weeks later? Simple – Ned had to make sure we had a veteran second-baseman, and Lopez, Belliard and Hudson were asking Big Bux. Ned signed Jamey to make sure he had a fallback plan. Plan A is to give Blake DeWitt the opportunity to win the job (forget his season last year, as he bounced around like a yo-yo from the Ravine to Albaquacky 9 times). The year before, he hit over .300 for 2 months and he has some decent power. Unless he tanks, the job is his. Carroll will be a “Dave Hansen Type” Pinch Hitter and Belly will be Belly.
You naysayers are in for a surprise. This team isn’t just “good” – IT’S VERY GOOD!
Dodger fans – you are in for the ride of your life, and in August, the Dodgers will probably be buyers because they haven’t blown their budget.
Like Dave Ramsey says “Live like no one else now, so you can live like no one else later.”
Recent debates here at LADodgerTalk have been heated and centered around how good the Dodgers will, or will not be. We have touched on whether Frank McCourt will, or will not, be able to hold on to his ownership. There is no shortage of opinion on this topic, and Joshua over at DodgerDivorce gives a lucid daily update on where that issue stands. Both Ken and Lawdog have weighed in on the legal minutia that surrounds the McCourts and it is still very much up in the air. California law has been clear in it’s position on division of property, especially in cases where the parties have been together for decades. Will the postnup that was signed late in the marriage be recognized by the courts? Personally, I cannot see how an agreement that grants one party about 90% of accrued assets can be honored, but, I am not a lawyer. I am only one of the many thousands who, in divorce court, got stripped by the law. We will see how that plays out in the McCourt case, but we will not know for months. In the mean time, what the impending divorce’s actual effect on the team will be is obvious to some, irrelevent to others.
This morning I would like to offer a first in a personal assessment of what lies ahead in the NL West. In reading about the other teams in our division, I can’t help but feel every team there will be better, but, is that actually possible?
The Arizona Diamondbacks. 2009 Results: Finished 70-92, last place in NL West. I think it is safe to say this won’t happen again.
Notable Additions: Edwin Jackson, Adam LaRoche, Kelly Johnson, Aaron Heilman, Bob Howry, and Ian Kennedy
Notable Departures: Eric Byrnes, Chad Tracy, Doug Davis, Scott Shoeneweis, Max Scherzer, and Daniel Schlereth
2009 was a mess of underperforming and injuries for the D-Backs. Like many teams, IF the team can remain uninjured, there is considerable hope for this club.
2010 promises to be a lot better with Brandon Webb returning from injury and the flurry of activity during this offseason. The D-Backs have thus far been the most active team in the division, adding several free agents and pulling off a big three-team trade with the Tigers and Yankees.
If healthy, the top of their rotation (Brandon Webb, Dan Haren, and Edwin Jackson) could be considered among the best in the division, but there are questions about the bottom of the rotation.
There is some serious young talent on this team, and it is time for all of them to step up. Stephen Drew, Chris Young, and Justin Upton are still looking to reach their full potential. Justin Upton has the tools to be a Super Star in this league. Is this the year his potential is realized? Mark Reynolds has proven he is the most powerful clean-up hitter in the division. Look for a repeat of his 40 home runs and 100+ rbi in 2010. Catcher Miguel Monterro is young and aggressive, look for him to hit .290 again with 20 home run potential. Adam LaRoche will fit nicely in this lineup at first base, with 20+ home runs. The Dbacks look for second baseman Kelly Johnson to return to his Atlanta form, with .280 avg. and 15 home runs. Conor Jackson is apparently ready to play, is a .300 hitter and he too has 20 home run power. The Dbacks bench could be one of the best in the league, with Snyder, Parra, Roberts and Abreu all scrappy, capable ballplayers.
The ability of this team to return to competing for the West title is tied to Webb’s return to form. All early reports say he is on schedule to be the Opening Day starter and that is great news for for Diamondback fans.
My prediction – easily a .500 team. If all goes right for them, they could win 90 games this coming year and give the Dodgers a run for the West title.
Some people are saying that the Dodgers are a .500 team (when I say “some people” I don’t mean “informed baseball people”), which I think is just plain delusional. I think sometimes Dodger fans fail to take into consideration that change is inevitable, and often, it is good. Will everything be OK? Seth Godin summed it up today by saying:
It’s natural to seek reassurance. Most of us want to believe that the choices we make will work out, that everything will be okay.
Artists and those that launch the untested, the new and the emotional (and I’d put marketers into all of these categories) wrestle with this need all the time. How can we proceed knowing that there’s a good chance that our actions will fail, that things might get worse, that everything won’t end up okay? In search of solace, we seek reassurance.
So people lie to us. So we lie to ourselves.
No, everything is not going to be okay. It never is. It isn’t okay now. Change, by definition, changes things. It makes some things better and some things worse. But everything is never okay.
Finding the bravery to shun faux reassurance is a critical step in producing important change. Once you free yourself from the need for perfect acceptance, it’s a lot easier to launch work that matters.
Will the Dodgers be OK? We are so much in the middle of the Forest that we can’t see the trees, or is it we can’t see the Forest for the trees? I will leaf that alone. What I will say is that we often look at how a player performed last year and extrapolate that into the next. What we fail to factor in is that we have a very young team and these guys often get better by leaps and bounds. In some cases you can count on it. I think we forget how far some of our young player have come, how much they have matured and how they will almost certainly continue down that same path.
In the middle of the long, cold winter, I usually pick-up a copy of Lindy’s Fantasy Baseball(I never play it myself), because over the years, I have found that their takes are pretty close to the reality. I don’t know for sure, but I think that they use a variety of statistical analysis as well as scouting resources to reach their conclusions. At any rate, I have read them for many years and their accuracy rate is exceptional when predicting what players might do. I thought I’d share a few of their predictions:
So, while Lindy’s is not Bill James or Fangraphs, it’s still very useful, and I have found that their projections are quite accurate. I think a lot of Dodger fans depreciate the value of a lot of our young players, as well as our role-players. The 2010 Version of the LA Dodgers is destined to be VERY, VERY GOOD! Now, depending upon what happens with the divorce, we could be buyers in August. Get ready for a great season! I see at leat 93 wins!
DODGER NEWS:
Since Frank stepped out of his Beverly Hills office this week and and has made some public statements, the fallout has been intense.
Mostly negative, as you can imagine. Right now, I am certainly in the minority in my belief that the Dodgers will be just fine. Everyone is anticipating the May hearing scheduled for the purpose of determining the Dodger ownership. I happen to believe that there is at least a 50-50 chance there will be no hearing and that this issue will be resolved between the parties. Just my opinion – feel free to disagree…
In case you haven’t read the articles, here they are:
http://www.latimes.com/sports/la-sp-dodgers-fyi16-2010jan16,0,109198.story
There’s more, but you get the picture.
The best one is written by my buddy, Tony Jackson:
http://sports.espn.go.com/los-angeles/mlb/columns/story?id=4830630
It’s good to see Tony back in the saddle and writing regularly for EspnLosAngeles. I have a link to his column at the Top Right-Hand side of the page.
From Baseball Think Factory (check out their ZIPS predictions):
While the Phillies are possibly the most dangerous team in the NL with their front-line talent, I think the Dodgers are the superior team over the season itself, thanks to better depth.
One thing the Dodgers demonstrate is that who the GM is can be overrated – the organization itself is top-notch and a testament to the work that Dan Evans and to a lesser extent, Paul DePodesta kept the team running while it recovered from the Kevin Malone era.
Even with a lot of the names on the list here only because they haven’t signed yet, the Dodgers could trade the entire current bullpen and cobble together a fairly decent one from the remaining depth. Luckily, they don’t have to do that. Of the pitchers I’ve projected so far (I’ve done most of the pitchers for all but the Braves, A’s, and Angels), the Dodger bullpen sports 3 of the 6 lowest reliever ERA+s.
The team still could use another starter and they’ll probably add one (at last check, they’re still in the running to bring Jon Garland back).
Like I have been telling you, it’s not gloom and doom! The 2010 Dodgers are contenders for the NL Title. You naysayers are going to be really disappointed this season!
