Aug 10, 2011, 2:00 PM EST
The big foam fingers at Dodger Stadium might have a different digit raised next season.
With attendence well down at Chavez Ravine, Facility Merchandising Inc. isn’t feeling so good about the eight-year deal it signed with the Dodgers prior to the 2010 season. It’s asked the U.S. Bankruptcy Court to intervene on its behalf as the Dodgers continue their bankruptcy proceedings.
FMI’s deal with the Dodgers guarantees it a minimum of $4.5 million per year through 2017, but the company claims it will lose about $2.5 million over the first two seasons of the agreement. Now the company is worried that the potential for future gains could be wiped out by the Dodgers walking away from the contract, something that could happen through bankruptcy law. According to the Los Angeles Times, FMI wants the Dodgers to decide whether to honor or reject the contract by the end of the season, before the company has to make this year’s payments to the Dodgers and buy next year’s merchandise.
The Dodgers argued in a court filing that FMI in leveraging the bankruptcy to try to redo the contract, with included no attendence benchmarks. Dodger Stadium merchandise revenue is down 25 percent this year, but there’s nothing in the agreement to protect FMI against such a decline.
A hearing is set for Aug. 16.
- Report: Red Sox offer Jon Lester six years, $110-120 million 66
- Report: “There is a 90 percent chance that Pablo Sandoval will sign with the Red Sox” 121
- A’s sign Billy Butler to three-year, $30 million contract 83
- Cardinals reportedly joining pursuit of Jon Lester 65
- Giancarlo Stanton’s contract is backloaded. REALLY backloaded. 148
- Braves and Cardinals swap Jason Heyward and Shelby Miller in blockbuster deal 156
- Blue Jays sign Russell Martin to five-year, $82 million deal 135
- Done Deal: Giancarlo Stanton and the Marlins agree on the biggest contract in baseball history 124
- Biggest deal in baseball history: Giancarlo Stanton close to 13-year, $325 million contract with Marlins (182)
- Braves and Cardinals swap Jason Heyward and Shelby Miller in blockbuster deal (156)
- Giancarlo Stanton’s contract is backloaded. REALLY backloaded. (148)
- Blue Jays sign Russell Martin to five-year, $82 million deal (135)
- Done Deal: Giancarlo Stanton and the Marlins agree on the biggest contract in baseball history (124)