Nov 5, 2009, 11:00 AM EST
For those of you who think that tooth-and-nail competition ended with Victorino’s groundout last night, you couldn’t be more wrong. The McCourts will have the first of what are sure to be many offseason hearings in there divorce battle cum power struggle later today, and unlike some of the stuff that will come later, this one involves the Dodgers pretty prominently.
The absolute go-to website for all of this stuff is Josh Fisher’s Dodger Divorce blog, where he has all of the details as to what will be argued and what will be at stake in today’s hearing and beyond.
While I appreciate that some of you may not care to pay attention to this due to the tawdry and salacious nature of some of the proceedings thus far, there is a larger baseball point to all of it: two highly-leveraged people are fighting over ownership of one of baseball’s marquee teams. The outcome of that battle will almost certainly have a profound impact on the Dodgers’ competitive situation going forward, as well as financial implications for baseball as a whole.
Why? Because if Jamie McCourt wins, and convinces the court that she’s a co-owner, the Dodgers will almost certainly have to be sold in the divorce. At the very least, they will have to be leveraged even more than they already are, thereby choking off cash from the team. What’s more, such a sale would probably occur under distress conditions — there would be a time frame placed on it — thereby lowering the franchise’s market value. Appreciation in franchise market value, by the way, is the single biggest reason anyone buys a baseball team. If that is negatively impacted, owners will start to behave very differently. Probably by cutting payroll and trying to make their teams a better investment from a cashflow perspective as opposed to merely an arbitrage opportunity. In short, this is a big deal.
So come for the wild accusations, but stay for the gravitas. Either way, we plan to keep you apprised of all of the happenings in L’affaire McCourt.
- Phillies GM told Ryan Howard they’d be better off “not with him but without him” 82
- Trea Turner’s agent is unhappy his client is in limbo after trade to Nationals 46
- Nexen Heroes accept Jung-Ho Kang posting fee from unidentified MLB team 31
- Giants acquire Casey McGehee from the Marlins 16
- The Padres have given their fans something to talk about. Which is badly needed in San Diego. 64
- Justin Upton traded to the Padres for three prospects 79
- Bud Selig will get a $6 million a year pension. Which is obscene. 144
- Jake Peavy agrees to a two-year, $24 million deal to stay with the San Francisco Giants 26
- The United States will seek to normalize relations with Cuba (144)
- Bud Selig will get a $6 million a year pension. Which is obscene. (144)
- Cubs, Red Sox, Dodgers, Padres, Rangers, and Astros interested in Phillies’ Cole Hamels (111)
- Rays, Padres, Nationals agree to 11-player trade (97)
- Chase Headley signs a four-year deal with the Yankees worth at least $52 million. (95)