Blog Entry

Without TV deal, McCourt can't meet May payroll

Posted on: May 4, 2011 11:48 am
 

By Evan Brunell

McCourtThe Dodgers saga is far from over, as the Los Angeles Times reports that Frank McCourt will be unable to meet May payroll without approval of a TV deal with FOX that will give L.A. $3 billion, with $285 million payable immediately that would cover payroll for the remainder of the season.

However, that deal is wallowing at the feet of commissioner Bud Selig who is awaiting both the approval of McCourt's ex-wife, Jamie, for the deal along with Tom Schieffer's OK. Schieffer was recently appointed as monitor of the Dodgers in a power-grabbing move by Selig that is thought to be an attempt by the commissioner to push McCourt out of town. Schieffer is reviewing all Dodger finances and Selig will not approve any deal until Schieffer completes that review. 

"It will be a thorough investigation," Schieffer said. "I would anticipate it would be longer than two weeks."

It's possible Schieffer will not conclude his investigation until the end of May, which will really put the squeeze on McCourt. Even if Schieffer comes through and OKs the deal, it's difficult to imagine Selig giving the green light in time for McCourt to pay his players. With the Dodgers then defaulting on payroll obligations, Selig would be able to legally and formally seize the team from McCourt and force a sale. McCourt could circumnavigate this by negotiating yet another personal loan, but it is unlikely FOX would grant another personal loan on top of the $30 million lent for McCourt to meet April payroll.

That means what is already a messy situation could get messier. If Selig doesn't release his grip on the TV deal and McCourt faults with baseball grabbing the team, McCourt would certainly sue over the proceedings and would have a solid case in court as he could easily contend that baseball froze him out and made him unable to make his payments through no fault of his own. Of course, McCourt dug his own grave, but you can't blame him for trying to climb out of it.

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Comments

Since: Mar 21, 2010
Posted on: May 4, 2011 3:02 pm
 

Without TV deal, McCourt can't meet May payroll

The ones I feel sorry for here are the players having to deal with this situation.
TxBucsfan thank you for keeping things in proper perspective. What is to stop the Los Angeles Dodgers players from not going out on to the baseball field to play baseball games if they will not be compensated for their services when a legally binding contract is in place that requires such compensation for such services rendered? And if the players do not play these baseball games, then what is to stop the fans from demanding their money back because the baseball games that they paid their money to see never occured?

I get it that Major League Baseball (e.g. Bud Selig) and the battling McCourts are all in a major power grab over the Los Angeles Dodgers franchise, however what they need to understand is that it not all about them and that there are actually other innocent people that will be adversely affected by their actions. For the sake of the players, the fans, and the game egos need to be checked at the door and cooler heads really need to prevail.



Since: Jan 9, 2007
Posted on: May 4, 2011 2:58 pm
 

Without TV deal, McCourt can't meet May payroll

What, No props for my comment because I am a Pats fan? I called them both out! Typical Jets fan.



Since: May 12, 2008
Posted on: May 4, 2011 2:47 pm
 

Without TV deal, McCourt can't meet May payroll

As a Giants fan this makes me LOL.  As a baseball fan, this is sad.  McCourt has made a mockery of a once proud franchise.  What a sad day for baseball. 



Since: Apr 19, 2009
Posted on: May 4, 2011 2:32 pm
 

Without TV deal, McCourt can't meet May payroll

Frank and the ol lady need to sell one of there many houses, and quick!!
MLB has only themselves to blame for this situation.
They let a guy buy-in without adeqate finances so know they get to deal with this mess.
And if they're waiting for Jamie to step up to the plate and help out Frankie don't hold your breath.
What a freaking disaster!!



Since: Jul 9, 2009
Posted on: May 4, 2011 2:16 pm
 

Without TV deal, McCourt can't meet May payroll

I assume one of the reasons McCourt doesn't want to sell right now--in addition to his disputes with his wife--is that in a forced sale the seller rarely gets full market value.  He'd no doubt prefer to wait until he can get a better price.  Of course, we can't always have what we want.

What concerns me is how long it's taken Selig to make a decision on the proposed Fox deal even before he appointed Schieffer to his post.  Wasn't this thing submitted for approval quite some time ago?  And if it was, couldn't Selig at that time have required McCourt (and Fox) to submit whatever documentation and information needed to support it from MLB's point of view?  If McCourt then refused or failed to do that, then wouldn't Selig have been able to reject the deal on that basis alone?  Maybe Selig was afraid of McCourt suing him immediately in that event, so maybe he's just using Schieffer to dig for more information that would justify turning down the deal (or even approving it).  Of course, McCourt will probably still sue if it's turned down, but at least in this event Selig may have found better reasons.  But the delay has its own risks: McCourt will undoubtedly contend that the Commissioner's delay itself harmed the Dodgers, whether he eventually approves the deal or not.

I also assume that one of the things that concerns Selig about the Fox deal is that if McCourt uses up so much of the money upfront to meet current payroll, the amount remaining to come in from the deal over the next 19 years would be disproportionately small--especially since the TV market may change over the 20-year life of the deal.  In that event, the Dodgers may wind up behind the eight ball on it some years in.  In a sense, McCourt would be borrowing from--and against--the club's future. 




Since: Jan 1, 2007
Posted on: May 4, 2011 2:08 pm
 

Without TV deal, McCourt can't meet May payroll

McCourt has screwed up a bit, but I love how everyone is blaming him, where as if his wife and Selig were out of it, there'd be none of this. TV deal would be done, team would be set. Figures, a woman and an asshole get in the way as usual.



Since: Feb 6, 2008
Posted on: May 4, 2011 2:00 pm
 

Without TV deal, McCourt can't meet May payroll

...And this Bozo is questioning why the MLB is intervening in the day-to-day operations of his franchise? A franchise like the Dodgers with the LA market shouldn't have to rely solely on a TV deal to make money!



Since: Aug 17, 2007
Posted on: May 4, 2011 1:41 pm
 

Without TV deal, McCourt can't meet May payroll

They can't get this douche away from the Dodgers fast enough! What a bigger loser this guy has become!

The sooner the better, MLB better get this guy out of there AND SOON!



Since: Dec 31, 2009
Posted on: May 4, 2011 1:28 pm
 

Without TV deal, McCourt can't meet May payroll

I love your comment.  Amen.



Since: Jan 9, 2007
Posted on: May 4, 2011 1:00 pm
 

Without TV deal, McCourt can't meet May payroll

It is both Mccourts. The D$ck and the c$nt. Money fighting over money! No surprise, Mccourt offered more money to buy the Red Sox than the current owners paid. What did the Sox know the the Dodgers didn't when they sold the team to him?


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