The Dodgers Are In Debt
Forbes has written a great report about the financial state of baseball and of course the Dodgers and Frank McCourt are one of them.
The Dodgers at this time are worth $800 million, up from the $355 (according to Forbes, a total of $433 when you add Chavez Ravine)) he bought the Dodgers for 7 years ago in 2004, yet amazingly the net worth that was created is steeped in debt! The Dodgers are now $433 million in debt. The sickening thing about that debt? A lot of it was used personally (Cars, houses, etc), and the teams revenue was used to pay down the loans that the McCourts used to buy the Dodgers.
So, of course with all of that money going into non Dodger related matters, how are we expected to improve on this team? We can’t, yeah they’ll spend money with stop gaps in FA, but it’s all a feint because McCourt has pulled assets from elsewhere in the Dodgers system.
Luckily for us fans, Jamie McCourt got tired of her crook of a husband and filed a divorce (even though a lot of the money he took was used for her) exposing a lot not only her assets, Franks assets but the Dodgers assets as well.
When Frank McCourt bought the Dodgers, he was just a parking lot mogul and didn’t have much of his own personal worth. He first tried to buy the Red Sox and Angels but lost out then when Fox wanted to get rid of the Dodgers (which I bet they wish they hadn’t now with the worth rising so much), and sold everything to McCourt for $433 million, which amazing, only $9 million was his own money, how could Selig approve that!!! He borrowed all the rest of it, ($424 mil) $196 of it was a loan from Fox using his parking lot as collateral (Fox sold it for more later HA).
It’s not like Frank doesn’t make money, the Dodgers made over $200 mil last year and it only takes $32 mil to run the Dodgers but amazingly, he’s steeped in debt, using all that revenue to pay off his $424 mil debt and borrowing a staggering total of $108 million to buy real estate and buy personal expenses like a $28 million mansion in Malibu.
Oh and get this, this I love, he turned two of the stadium’s parking lots into a separate company (separate from the Dodgers) and then took a $60 million loan against it! Did he used all that money to help the team? No, only $22 mil of it was used on the Dodgers, and the rest of the $38 mil he pocketed.
So, in the end it looks like eventually the Dodgers will be up for sale again, no one wants to buy in (the deals keep falling through), Selig won’t approve anymore loans to him, or allow anyone else to loan money to McCourt. Jamie looks like she will own have the team because McCourt had his lawyer draw up new post-nuptial documents after the 1st ones were created that listed the Dodgers as a separate property and the other half didn’t, which means that he’ll eventually have to sell, which might explain why he can’t get an investor, no one likes to sail on a ship you know will sink, it’s like going back in time and buying a ticket on the Titanic.