May 9, 2011, 8:46 AM EDT
Remember how Frank McCourt, upon buying the Dodgers, split the team’s assets up into multiple different businesses and holding companies and things? Yeah, that couldn’t even lead to a depressing outcome. Bill Shaikin:
When McCourt bought the Dodgers in 2004, the purchase included the team, Dodger Stadium and the surrounding parking lots. He has since divided those assets among separate companies, providing the embattled Dodgers owner with a possible claim to the stadium and the land even if he loses the team … In theory, McCourt could sell the Dodgers, then make more money from renting the stadium to the new owner, taking a cut of parking revenue and reaping the benefits of future development within the parking lots.
This reminds me of Wayne Huizenga and the Florida Marlins. Whereas McCourt has screwed up the Dodgers via ineptitude, Huizenga just burned the Marlins down following their 1997 World Series championship. Then, after selling the team, he held on to huge chunks of team parking and concession revenues because those things were separate from the ballclub itself. And there was (Is? Does Wayne still have this stuff?) nothing more depressing to Marlins fans than knowing that the guy who destroyed a championship team was making more money off the Marlins than the Marlins were.
Unlike Florida, however, there could be obstacles to McCourt serving as the Dodgers’ landlord. For one thing his ex-wife will claim a stake in all of those ancillary interests, so she will either have to be bought out of them or else will they will have to be sold, with the most likely bidder being whoever ends up buying the team (and anyone who wants the club will almost certainly want the stadium too).
Shaikin also suggests that Major League Baseball could say something about it, but it’s not quite clear to me how that’s possible given that their rules apparently don’t prohibit busting up team assets like that and their authority seems to extend to management of the club, not management of the owners’ assets.
My hope is that McCourt can’t hold onto the ballpark and parking lots because he’s too leveraged to do so. Given his track record, it’s probably a reasonable hope.
- Astros acquire Carlos Gomez and Mike Fiers from Brewers 34
- Pirates bolster bullpen, pick up Joakim Soria from Tigers 9
- 2015 MLB Trade Deadline Tracker 4
- The extraordinarily odd, 13-player Dodgers-Marlins-Braves trade is done 60
- Blue Jays acquire David Price from the Tigers 111
- Both the Phillies and the Rangers did well in the Cole Hamels trade 72
- Rangers land ace left-hander Cole Hamels from Phillies 106
- Mets, Brewers call off reported Carlos Gomez trade 78
- The MLBPA is considering withholding cooperation with ESPN, Fox over Colin Cowherd’s comments (157)
- The Cubs are in discussions with the Phillies on Cole Hamels (146)
- Major League Baseball rips Colin Cowherd in an official statement (123)
- Blue Jays acquire David Price from the Tigers (111)
- Rangers land ace left-hander Cole Hamels from Phillies (106)