Jul 15, 2011, 9:17 AM EDT
At the moment, the big issue in front of the court handling the Dodgers bankruptcy is how the Dodgers’ operations will be financed for the next several months while the legal process is played out. Frank McCourt has obtained a private loan and wants to use it to run the team. Major League Baseball counters, offering its own financing to run the team. He who controls the spice controls the universe, so whoever wins this financing battle is going to have a way bigger hand in the future of the Dodgers than whoever doesn’t. It’s a big deal.
To that end, Major League Baseball filed a brief yesterday explaining why Frank McCourt’s proposed financing is not in the best interest of the Dodgers. Their biggest beef: Frank McCourt stands to personally benefit from the loan he obtained:
“Clearly, Mr. McCourt has not allowed these bankruptcy cases to change the practice of using the [Dodgers] as his personal piggy bank”
The brief is redacted for some reason, so the exact amount McCourt is allegedly skimming off the top of his loan is not explicitly stated. The brief makes further allusions to just how much McCourt has looted the Dodgers over the years. These numbers are redacted too, but the L.A. Times spoke with a source who says that the number is closer to $200 million than the $100 million which has been widely reported over the past couple of years.
As we’ve noted before, on its basic terms, the loan McCourt wants to use is pretty poor. High interest and a big up-front fee that Major League Baseball’s proposed financing doesn’t call for. Frank’s only apparent objection to baseball’s financing is that, well, it’s not good for Frank. Pity, that.
There will be a hearing on all of this next Wednesday and, if form holds, a pretty quick ruling.
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