Frank McCourt Gets One More Push Out That Door
November 2, 2011 at 5:33 am | Posted in Frank McCourt | 57 Comments
The day you never thought would come? Yeah, it’s just about here. One of them, anyway. Bill Shaikin (as usual) with the fantastic news:
Frank McCourt agreed Tuesday to sell the Dodgers, abruptly surrendering the team after fighting to retain it over two years and in two courts.
McCourt and Major League Baseball have agreed to seek approval from the U.S. Bankruptcy Court for an auction of the Dodgers. The sale is expected to include the team, Dodger Stadium and the surrounding parking lots, a package bought by McCourt for $421 million in 2004 and likely to sell for two to three times as much now.
The league hopes a new Dodgers owner can be in place by opening day.
First and foremost: YEAH! I wasn’t sure I’d ever live to see this happen, yet here we are. Remember, this has been going for over two years. Hell, this is what I was writing in October of 2009, well before bankruptcies, Russian faith healers, attempted MLB takeovers and over 50 other sins:
So when the news of your divorce came out on the day of Game 1 of the NLCS, that was troubling enough. In the days since, rather than celebrate the end of the Dodger season and plans for the offseason, we’ve had to listen to quotes like “they’re trashing each other terribly. It’s going to be World War III” and now see the news that Jamie’s been fired from her position as CEO, while promising a lawsuit.
I’ve yet to read an account that doesn’t characterize this as being an extremely ugly situation. And yet again, I don’t really care about the “winner” of this situation insomuch as who gets the two (at least!) mansions you own. Remember, we only really care about how this is going to impact the Dodgers. We’re workaday slobs, you know, so watching our favorite team succeed is the only respite from our otherwise crushing lives. Or something like that.
Don’t let your personal issues get in the way of the enjoyment of millions of Dodger fans around the world, because if – as seems likely – this devolves into a path of scorched earth and courtroom rhetoric that leads to the selling off of assets on the field and a string of losing seasons like in San Diego, you might still own the team, and you might have won in the eyes of the law, but you’ll still be a pariah in the eyes of Dodger fans everywhere.
Fix this quickly and privately, or sell the team. Now. You may be striving for the spotlight, but you’re not bigger than the Dodgers, and it’s your association with them that’s brought you fame – not vice versa.
…and I think we can see how well that worked out, while also reminding us that we couldn’t stand the McCourts well before any news of the divorce leaked. In addition, don’t forget the happy ancillary benefits that could come along with this… namely, the hope that a new owner might want to bring along his own general manager – one who wouldn’t give Juan Rivera $4m, Juan Pierre $44m, Jason Schmidt $47m, amongst a litany of other errors.
This is still a long way from over, of course. As I noted yesterday, there’s still a long way to go from “settlement” to “sale”, and if the reported $1b or more purchase price is scaring off Mark Cuban (who is never getting approved by MLB anyway), we’re definitely going to have to worry about if any prospective buyer still even has money left over after putting that kind of cash down – but that’s a worry for another day. For now, there’s light at the end of the tunnel. (A different tunnel, I would imagine, than the one we hope McCourt gets thrown down.) That’s progress. And that’s worth celebrating.
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I appreciate your enthusiasm. It’s all a little surreal right now. For years we’ve all waited and now, we wait some more. I hope the new owner(s) want a championship for the Dodgers; not fame, not notoriety, not a sports enterprise. Just great baseball in LA.
I enjoy your site greatly, though I notice you quote yourself a lot. I think your credibilty is self evident without that.
Thanks for all your work. Every great Dodger should stay a Dodger. Go Blue!
Comment by Grocmund— November 2, 2011 #
So I do. I guess I’ve got a little Stephen Colbert in me.
Comment by Mike— November 2, 2011 #
It’s called accountability. Difficult to recognize because it’s nearly -existent nowadays. Keep it up.
Comment by Doppel— November 2, 2011 #
I think the self quotes usually make sense in context. In this context, it’s to show how long we’ve been saying the same thing. In the Year in review posts, it’s often to show how a player’s performance has changed over the course of a season. I think it works because it stimulates my memory more that way than if he just says “Loney started the year badly” or “This McCourt situation has lasted two years.”
Comment by Bip— November 2, 2011 #
How come Age of Aquarius keeps playing in my head?
Comment by The Hatch— November 2, 2011 #
I swear I almost posted that video for this.
Comment by Mike— November 2, 2011 #
I am blasting that song on my ipod at work. Everyone is looking at me strangely… I do work in the bay area.
Comment by Goober— November 2, 2011 #
Sweet news! Now quickly out the door, with both of them, before Ned does any more damage to this organization. It’s rebuilding time!
Comment by McColletti BeGone— November 2, 2011 #
Very happy when I heard about this and this was the first place I came to, and as usual Mike, you didn’t disappoint. Except with the Juan Rivera news. That’s awful. But in the interim, I’ll take this.
Point about Cuban: Can’t he bring in a few other investors to put together the billion dollar asking price, meanwhile he retains majority (51%) ownership? I know the MLB is against Cuban for some insane reason, but after what Selig put us through with McCourt, he owes is. Lastly, if it is sold at auction, the MLB has zero say in who ultimately is the owner, no?
Comment by SV Narine— November 2, 2011 #
Super last thing: If the conversation between Cuban and McCourt actually happened (based on McCourt’s recent denial that he ever spoke to Cuban), the time frame that this conversation would have occurred would be when McCourt was not selling the land and the TV rights along with the team. The new agreement is for the whole package. I’m just trying to spin this into Cuban COULD possibly buy the team.
Comment by SV Narine— November 2, 2011 #
Sorry guys, Jerry Reinsdorf has basically said “over my dead body will Cuban own a baseball team.” Old JR is too close to Selig. Cuban will not own the Dodgers or anything other club as long as JR is alive. You can join bitter Bulls fans in hating the crotchety old bastard.
Comment by Chris Jackson— November 2, 2011 #
So now Cuban has to add a hit squad to the price of acquiring the Dodgers? ^_^
Comment by Eric Alegado— November 2, 2011 #
>> the hope that a new owner might want to bring along his own general manager – one who wouldn’t give Juan Rivera $4m, Juan Pierre $44m, Jason Schmidt $47m, amongst a litany of other errors.
.
Colletti made plenty of mistakes, some of them doozies. But Juan Rivera is not one of them. And the Dodgers didn’t pay him $4 million, either. (Talk at the time was that Toronto was picking up part of his $5.25MM salary, but even if it was pro-rated, the Dodgers share wouldn’t even be $3 million.
.
I know you’re looking for every opportunity to bash Colletti. But there are enough actual mistakes that you don’t need to make others up.
Comment by nsxtasy— November 2, 2011 #
The $4mm deal is a NEW contract for 2012. Follow the link that he put in the article (he posted it yesterday as well, along with many other sites).
Comment by SV Narine— November 2, 2011 #
yup. maybe a little parting FU from ned to us dodger fans before the new owner heaves him out the door? at least it’s not quite as egregious a contract as in the past.
Comment by sumdumfu— November 2, 2011 #
If it’s for 2012, then you can’t even say yet whether it’s an error or not. And even if it turns out to be a mistake, it’s still only $4 million, which is not much to get excited over, relatively speaking. (It’s only one eighth as much as the unmentioned contract for Androo, or one sixth the one for Uribe.)
Comment by nsxtasy— November 2, 2011 #
Guys who got DFA’d mid season usually take a big pay cut. Ned gave him 75% of what he made last year. Regardless of performance next season, Ned paid more that he had to. Just like when we talk about Trayvon – regardless of of what Tray turns out to be, Ned didn’t get enough for him.
Comment by Dave Pomerantz— November 2, 2011 #
Ned does sure like to over pay people who don’t really deserve it, but at this price its more just a tad annoying rather than some sort of travesty. I thought he’d get around 2mil but obviously that’s too low.
Comment by crushinator— November 2, 2011 #
Overall last year Rivera had a -0.5 WAR……..that could have gone to signing Kemp or Kershaw.
Comment by DodgersKings323— November 2, 2011 #
This is a great day for the city of Los Angeles and Dodger fans everywhere. Not such a great day for the Dodgers’ current GM IMO.
Comment by Gordon Moody (@GordonMoody)— November 2, 2011 #
honestly i have major doubts about whether the team will sell for higher than $1Bn. with the team in the gutters i don’t think too many prospective buyers are climbing over each other to get a piece right now. i think cuban’s estimate also includes a conservative guess at future growth; $1.2Bn makes that conservative guess a little radical, and thus risky. $800mil is probly the team’s actual value, and i think many other bidders will realize these facts, so for them going over cuban’s bid of $1Bn would be more risk than an intelligent businessman is willing to take.
cuban’s estimate probably also includes a diehard sportsfan premium; something a person like mccourt isn’t going to include in his number and so would also be lower accordingly. i think there’s better than 50/50 odds cuban’s bid would be the highest; whether he actually gets to buy the team is another matter.
Comment by sumdumfu— November 2, 2011 #
So who do you think are realistic potential buyers. My short list found by Googling for about 5 minutes came up with two: Eli Broad/Peter O’Malley and Phil Anschutz.
I don’t think Cuban will go for it, he’s already said $1B is too much and I figure that the bidding will probably get that high, although I have no supporting data.
Who else?
Comment by drh— November 2, 2011 #
It is kind of like Christmas morning here. Frank is almost gone and maybe he will take Ned with him. About time too, I need a new Dodger jersey….been over two years since I bought the last one.
Now, for the fun part, odds on the potential owners of the Dodgers. I would think that Dennis Gilbert and his group would be top of the list with names like Alec Gores, Alan Casden, Mark Cuban, Ron Burkle and some local owners of other teams like Tom Werner and Mark Attanasio being mentioned.
Comment by grabarkewitz— November 2, 2011 #
. So unlike 2011, I won’t be torn by the lifelong fun of rooting for the Dodgers, and knowing that victories could increase fan interest and generate income that would *help* Frank [ and Ned ]. Great to have that gorilla of our backs…now for his dancing monkey.
Comment by jWerthFan— November 2, 2011 #
An investment banking auction rarely takes less than 9 months. Maybe MLB has been soliciting buyers for some time and combining their investigation with some due diligence activities. Thank you BK judge for not ruling the Fox contract an executory contract thus closing the door on Frank’s only real avenue for victory. Based upon current Dodger finances Bud should not approve debt in excess of $300 million as part of the purchase. That leaves a boat load of equity required for the new owners to bring to the table.
Comment by Ken— November 2, 2011 #
I honestly have a tear in my eye. This makes me so happy…
From what I can guess it is one of three bidders. Mike, let us know if you hear of any more…
1) Hershiser/Garvey group. Money coming from China, etc. (Ideal owners, not ideal where the $ comes from).
2) AEG. Built the Staples Center and Hope Depot Center, trying to build NFL Stadium
3) Mark Cuban. Great from our perspective. Enemy of the state for MLB.
Any others?
Comment by Goober— November 2, 2011 #
With the team and Chavez Ravine, along with the new TV rights, there should be a bid of 1B that satisfies the McCourt family. The Dodgers are for sale, the Dodgers are for sale! Hopefully this process has already begun behing closed doors, and that the new ownership is in Dodger Stadium for Opening Day 2012. Go Blue!
Comment by dodgerccp— November 2, 2011 #
Thank you to the McCourt family, and ba-bye. Go Blue!
Comment by dodgerccp— November 2, 2011 #
Now I’m just praying a-holes like Dan Gilbert stay the f away. If he got the team, it would be tough to root for the Dodgers.
Comment by Table— November 2, 2011 #
Dennis gilbert? What’s wrong w him?
Comment by Mike— November 2, 2011 #
http://www.dailynews.com/sports/ci_18212980
I do not know anything about him other than what I read, but Dennis Gilbert sounds well qualified and respected.
Mark Cuban might be the popular choice for fans, but I would think Gilbert might be more acceptable to Selig and the other owners and would grow on the fans.
Bottom line – anyone but McCourt
Comment by Kirk Davenport— November 2, 2011 #
I remember in 2003 I said “Anyone but News Corp.”
That worked out well.
Comment by Brandon— November 2, 2011 #
Dennis Gilbert I’m all for
Comment by Table— November 2, 2011 #
Nah I meant Dan Gilbert (owner of the Cavs), someone said he might buy the Dodgers, but maybe he meant to say Dennis Gilbert.
Comment by Table— November 2, 2011 #
Gilbert, December 2012: “WE ARE SO PISSED ABOUT MATT KEMP LEAVING. PLEASE BURN HIS JERSEY IN THE STREET, WE ARE SOOOO GONNA WINZ A TITLE BEFORE THE SELF-PROCLAIMED “BISON.” LA DODGAS FTW!!!!”
Comment by SamL— November 2, 2011 #
OMG THIS IS GREAT http://www.jest.com/video/46873/too-much-moneyball
Comment by Table— November 2, 2011 #
With the team in flux, will that shut down any major transactions until new ownership is in place? Most likely new ownership will not be in place until too late to go after any quality players through free agency or trades. Will this coming year just be a write off
Comment by Kirk Davenport— November 2, 2011 #
appropriate dictionary definition of flux
Noun 1. state of flux – a state of uncertainty about what should be done (usually following some important event) preceding the establishment of a new direction of action; “the flux following the death of the emperor”
Comment by Kirk Davenport— November 2, 2011 #
Yeah, that’s what I’m wondering about. Didn’t we lose out on Vlad in 2003 because of the team being “in flux?”
Comment by Beasy Bee— November 2, 2011 #
I want to watch videos of Dodger fans seeing this news on TV at a bar and rejoicing.
Comment by SamL— November 2, 2011 #
Comment by SamL— November 2, 2011 #
Other than the fact that he used to be a Dodger can anyone else explain the infatuation I’m seeing regarding a Steve Garvey led ownership group? I’m pretty sure any other potential buyers with the same personal conduct and business history would be a cause for concern.
Comment by Justin Drummond— November 2, 2011 #
Yuppers, give me Cuban any day
Comment by DodgersKings323— November 2, 2011 #
If it can’t be Cuban as the new owner, then I hope it’s the Hershiser/Garvey group, some folks that care about “The Dodger Way”.
Comment by Omer— November 2, 2011 #
I’m leery of anything that puts ‘Steve Garvey’ and ‘business’ together
Comment by Dusty Baker's Toothpick— November 2, 2011 #
I just heard on the sports talk of the new Dodger radio station (Petros and Money KLAC) that the Dodger sale auction is structured so that it will be a true auction within the court system and Bud Selig would not be able to hand pick a new owner nor have veto power over he winner.
Does that mean that Selig will not be able to make a sweetheart deal with a new owner like when he brought in Frank McCourt to save the Dodgers, or when he supposedly manipulated the Texas Ranger sales to boost Nolan Ryan’s group over Mark Cuban’s group?
Anyone have authoritative info on whether or not the sale is now beyond Selig’s reach and therefore a new owner would not have to be acceptable to the MLB owner’s committee. That would give McCourt a chance to make possibly more money and give Mark Cuban a pass to get into MLB.
Comment by Kirk Davenport— November 2, 2011 #
Well I believe the whole agreement has to be approved by the bankruptcy court first, which it likely will be. Your scenario is possible, Kirk, but I have not seen it as a certainty anywhere.
Comment by Mike— November 2, 2011 #
How about Peter O’Malley?
http://www.latimes.com/sports/la-sp-peter-omalley-20111103,0,4549505.story
Comment by Mike— November 2, 2011 #
Mike, congrats on being quoted in the NY TImes: http://www.nytimes.com/2011/11/03/sports/baseball/mccourt-agrees-to-sell-los-angeles-dodgers.html?_r=1&ref=sports
Comment by ThtsaPaddlin— November 2, 2011 #
Ha! I had no idea – thanks for the link.
Comment by Mike— November 2, 2011 #
Also, holy crap, tripled the previous one-day blog traffic record yesterday. Guessing it wasn’t because of Juan Rivera.
Comment by Mike— November 2, 2011 #
O’”Malley Yes; Garvey – The choice of people who think McCourt handles money properly.
Comment by Ken— November 2, 2011 #
AP News article identifying a slew of possible bidders
http://www.nbcsports.msnbc.com/id/45128646/ns/sports-baseball/
some of the more interesting…
Fred Claire heading a group that includes a former Dodger Bat boy (Ben Hwang)
Mark Anastasio – owner of the Brewers who rumors have selling the Brewers back to Bud Selig when Selig retires as commissioner
Lew Wolff of the A’s and Tom Werner of the Red Sox were mentioned as well as Disney, Mark Cuban, Dennis Gilbert, Ron Burkle, Garvey & Hershiser, various real estate people interested in developing Chavez ravine open land and some media giants and more
It should be an interesting process.
Comment by Kirk Davenport— November 2, 2011 #
Dammit Kirk. Stop reading drafts of posts I’m about to publish.
Comment by Mike— November 2, 2011 #
Sorry – I’ll slow down – there is just so much going on – making the head spin – makes up for some of those slow days in June and July – you are probably going 18 hour days with all this stuff. Don’t let me stop you, we need some sane takes on all this.
Comment by Kirk Davenport— November 2, 2011 #
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