Blog Entry

Selig nixes potential loan from FOX to McCourt

Posted on: February 25, 2011 10:52 am
Edited on: February 25, 2011 1:09 pm
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Frank McCourt was ready to accept a $200 million loan from FOX until baseball's commissioner stepped in. According to the Los Angeles Times , the Dodgers owner was going to use the team's cable TV rights as collateral and accept the money. The report stated if he wasn't able to repay, the Dodgers' deal with FOX would be extended by as many as four years. McCourt has money woes due to a massive debt -- upwards of $430 million, according to reports -- and also due to a messy and costly divorce from his former wife Jamie.

The divorce certainly clouds matters for McCourt, since Jamie contends she is still a half-owner of the Dodgers. Any deal made would be subject to division by the court, in her view. Frank, of course, believes he is the sole owner of the Dodgers and can make any deal he wishes.

But McCourt is going to have to find another way to get himself out of the hole, because Bud Selig reportedly blocked the loan.

Back in 2004, when McCourt bought the Dodgers from FOX, he was lent $145 million by the company. He used his Boston parking lots as collateral, but FOX has since foreclosed on the property and sold it.

Basically, the whole situation is a mess. It won't affect the Dodgers on the field per se, but payroll could become quite strapped in future seasons for a franchise that should be able to handle one of the league's biggest payrolls.

-- Matt Snyder

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Comments

Since: May 24, 2009
Posted on: February 26, 2011 3:22 am
 

Selig nixes potential loan from FOX to McCourt

This is what happens when you let someone from Boston own a team.



Since: Jan 14, 2007
Posted on: February 25, 2011 9:39 pm
 

Selig nixes potential loan from FOX to McCourt

MLB is the only sport where you can borrow money to buy a team, IE Dodgers, CUBs, its their mess but they wont clean it up, until its too late.......like now



Since: Dec 25, 2006
Posted on: February 25, 2011 9:12 pm
 

Selig nixes potential loan from FOX to McCourt

Mister: wow.. someones made some bad decisions with the ladies????



Since: Oct 25, 2008
Posted on: February 25, 2011 8:40 pm
 

Selig nixes potential loan from FOX to McCourt

This isn't good news for Giants fans,  as much as the Dodgers' failures make us happy.  It's really good for baseball and both fan bases to have the Dodgers be more competetive,  esspecially since the Giants would be kickin' your ass even if the Bums were any good right now.



Since: Jun 2, 2009
Posted on: February 25, 2011 8:24 pm
 

Selig nixes potential loan from FOX to McCourt

I gotta get me some parking lots!



Since: Jul 26, 2009
Posted on: February 25, 2011 7:23 pm
 

Selig nixes potential loan from FOX to McCourt

This is ridicolous. The McCourt's are the laughing stock the sports. I feel for the storied Dodger Organization and MLB namely Bob the Spud Selig needs to get off his butt and do something. The Rangers had a lot less drama and they were put on the auction block. MLB reacts instead of taking the initiative. This should have been addressed last year. One of the many reasons I just don't care for the sport the way I once did. I use it for background noise more so than anything anymore.



Since: Apr 12, 2007
Posted on: February 25, 2011 6:46 pm
 

Selig nixes potential loan from FOX to McCourt

As a life long Dodger fan, this is truly saddening, maybe my children's, children's grandchildren, will get to see a world series title, Im 25 and I do not feel like the 88' series is truly one I got to or can enjoy, even though I get to watch my dad re-enact the Kirk Gibson fist pumping (not a jersey shore plug). He got to be at the game, and he would always brag about how the Dodgers have won a world series every decade since he has been alive, and after he said that in the 90's, we never won one, and it as spilled into the 00's, so in about 60 years, when im old, and the Dodgers still have not won a World Series in my adult lifetime, I am gonna go visit my Dad's grave and tell him that I miss him and love him, and thank him for the every decade curse he put on the Dodgers.



Since: Jan 2, 2007
Posted on: February 25, 2011 5:47 pm
 

Selig nixes potential loan from FOX to McCourt

If the McCourt's need $200 million to handle day-to-day operations of the Dodgers, it's time for the Commissioner's Office to step in and take the team into receivership.  Inform the McCourt's they are welcome to bid and become the "new" owners of the club.  It is time to move on as going through another season of this helps nobody.  Clearly, the courts are pushing Frank McCourt to share ownership and he needs to find a way to keep things going.  I believe Tom Hicks was less in debt for the Rangers' operation costs than McCourt lost last year with the Dodgers.  MLB forced out Hicks, it's time to do the same to the McCourts.  Let MLB handle the sale, like they did with the Marlins, Expos, and Rangers and let the bidding begin.  Since this is the Dodgers, the money should start pouring out of the woodwork for a shot to own this club.

From the beginning, Frank McCourt had no business owning this club.  He had to borrow through his eyeballs to get enough scratch to have News Corp. agree to finance the rest of the purchase by using his real estate holdings in the Boston area as collateral.  When payments fell short, News Corp. took over the land he offered up, cancelled the debt and flipped the property for something in the neighborhood of $200 million.  He's in debt to the tune of $400 million and can't even get close to breaking even after raising ticket prices and licensing fees every year since the purchase.  Put the man out of his misery-- he's bitten off more than he can chew.  MLB should "buy" the team at a fair price-- probably in the neighborhood of $700 million-- and flip it within a year.  They'll probably turn a profit on the sale and can pass along the rest to the McCourts after the 2nd sale is complete.



Since: Sep 30, 2008
Posted on: February 25, 2011 5:42 pm
 

Selig nixes potential loan from FOX to McCourt

And to think that these fools almost won the bid to purchase the Red Sox.  I thank the baseball gods that Henry, Werner & Lucchino won out.  Love that Cosby/Rosanne money here in Boston.  Sure beats parking lot dough any day!  
Joking aside, I hope for a speedy recovery for a proud franchise. Best of luck Dodger fans.



Since: Oct 3, 2006
Posted on: February 25, 2011 5:29 pm
 

Selig nixes potential loan from FOX to McCourt

So Cal Fan

Cmon, Clam Chowder is awsome and the Celtics and Lakers have had some great duals over the years. They also make great yachts.

That's about it.

The business people are born rich so they have little ability. The woman don't compare to So Cal, or the south and it's too cold to enjoy the ocean.


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