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Frank McCourt takes a $30 million loan from FOX in order to meet payroll

Apr 18, 2011, 8:24 AM EDT

FOX used to own the Dodgers. At this rate, they’re going to own them again someday soon:

Frank McCourt took a $30-million loan this week from Fox to meet the Dodgers’ payroll obligations, according to three people briefed on the arrangement. The arrangement is expected to cover the Dodgers’ expenses into next month … The loan marks the second time since the end of last season that Fox has provided money to the Dodgers’ owner so he could cover expenses. The loan was furnished to McCourt personally rather than to the Dodgers, according to the people briefed on the deal.

And because it was a personal loan, it did not require the approval of Major League Baseball.  Baseball is still mulling, however, whether it will allow McCourt to settle his legal problems by taking a big chunk of cash from a new TV right deal for Dodgers telecasts on FOX and diverting it to Jamie McCourt and whoever the hell else Frank owes money too.

If I’m Bud, I wait this out. If he’s taking month-to-month personal loans to cover payroll, Frank is going to go bankrupt very soon and he’ll be forced to sell the Dodgers like Tom Hicks did. Sure, it may not be fabulous to have a marquee franchise in bankruptcy court, but as the Rangers showed, the process is survivable. And, once free from McCourt, the Dodgers could easily become a lucrative property once again.

  1. jwbiii - Apr 18, 2011 at 9:37 AM

    If I’m Bud, I wait this out.
    If you’re Bud, you wait everything out. The man convenes a Blue Ribbon Panel every morning to discuss lunch options.

    But giving Frank McCourt enough rope makes sense here and avoids the possibility of a nasty lawsuit that would be likely if MLB attempted to force the sale.

  2. tforkush - Apr 18, 2011 at 3:17 PM

    It seems to me that if he does nothing, McCourt can continue this charade of monthly loans in perpetuity, which merely exacerbates the problem but solves nothing. Is this the way around Selig acting?

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