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Major League Baseball to offer alternative Dodgers financing today

Jun 28, 2011, 8:25 AM EDT

Combination of file photos of MLB commissioner Bud Selig and Los Angeles Dodgers owner Frank McCourt

Today is only Day Two in what will likely be a lengthy set of legal proceedings for the Dodgers, but it’s a pretty big day.  Why? It’s the day of the initial hearing in the bankruptcy case and it’s the day on which the judge could very well decide if Frank McCourt is going to be able to continue to run the Dodgers while they’re in Chapter 11.

As we mentioned yesterday, Frank McCourt has secured a loan — a terrible one, but a loan nonetheless — of $150 million to keep the team operating during bankruptcy.  That has to be approved by the judge, however, and according to multiple reports out there, Major League Baseball is expected to offer an alternative financing solution. One that, one presumes, will not cost the Dodgers 10% a year in interest with a $4.5 million nuisance fee like McCourt’s plan. At the same time, baseball’s plan will likely come with the proviso that McCourt be kicked to the curb and the team be sold to the highest bidder.

The devil is in the details and we don’t know any details to MLB’s alternative financing plan so, no, it’s not certain that the judge would prefer baseball’s plan to McCourt’s.  But he could. If he does, it will likely mark the beginning of the end for him. If he lets Frank take his $150 million loan, it will likely be a much longer road ahead. At least for those of us who want to see Frank McCourt removed from power.

  1. Chris Fiorentino - Jun 28, 2011 at 8:46 AM

    I got two words for Bud…Mark Cuban. If he continues his BS line that he doesn’t want Cuban to own a team because he will “want the spotlight” then Bud truly is a stubborn man who will never learn from his mistakes. If, however, he says “We are open to anyone with some CASH buying the Dodgers”, then I’ll admit that Bud is a changed man.

  2. Kevin S. - Jun 28, 2011 at 8:56 AM

    My guess is that if MLB comes in with an alternative financing plan to kick McCourt to the curb, the judge won’t then let them reject the highest bidder.

  3. Jonny 5 - Jun 28, 2011 at 9:32 AM

    I hope the new owner builds a new stadium somewhere else so McCourt can’t continue to soak the Dodgers even after he’s “gone”.

    • paperlions - Jun 28, 2011 at 10:20 AM

      Five Dodger related companies filed for bankruptcy: Los Angeles Dodgers LLC, Los Angeles Dodgers Holding Company LLC, LA Holdco LLC, LA Real Estate LLC and LA Real Estate Holding Company LLC.

      I think in there (the LA Holdco) is the “company” that “owns” the stadium. I don’t think it includes the “company” (Blue Landco) that “owns” the parking lots.

      • cur68 - Jun 28, 2011 at 10:46 AM

        Doesn’t McCourt have some kind of contract with MLB or the Dodgers that stipulates that all home games are played @ Chavez? If the game isn’t played there McCourt still gets paid. I think he has home games all sewn up by this contract. I’m not sure, since I read it here on HBT and have no idea where to look to check up on that.

  4. patsandsox - Jun 28, 2011 at 10:23 AM

    I cant imagine Cuban could be any worse than other owners that have been very successful but run there mouths constantly. Sure he will cry if he imagines the leauge is against him but he will put his money into the best team he can buy and will compete with the Philies, Yankees, Red Sox (and if the mess ever get a decent owner them too).

    I dont see anything wrong with that. John Henry cries about revenuing sharing with teams that pocket the money instead of investing it in their product (which I agree with). The Yankees have cried about the same thing but both teams are putting the best possible teams on the field. I cant imagine any Dodgers fan would complain to have owners that would do the same.

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