Kudos, Mr. Selig
Today, Bud Selig issued this statement:
“Mr. McCourt has been provided with an expansive analysis of my reasons for rejecting this proposed transaction. Critically, the transaction is structured to facilitate the further diversion of Dodgers assets for the personal needs of Mr. McCourt. Given the magnitude of the transaction, such a diversion of assets would have the effect of mortgaging the future of the franchise to the long-term detriment of the club and its fans. As I have said before, we owe it to the legion of loyal Dodger fans to ensure that this club is being operated properly now and will be guided appropriately in the future. This transaction would not accomplish these goals.”
If you’ve read this link, you probably understand why I’m applauding Selig’s decision. If you haven’t read that link, go do so now. I can’t vouch for the accuracy of everything contained within, but it doesn’t have to be 100% correct for the general point to remain – the McCourts have been and are still attempting to actively devalue a Major League franchise for their own personal gain.
I’m sure McCourt will sue, and we’ll get months of legal haggling over the rights of the commissioner’s office versus the rights of a team owner. I’m also pretty sure, however, that this will all end in Frank McCourt losing control of the Los Angeles Dodgers – a team he should have never owned in the first place – and Major League Baseball will be better off with him and his family out of the sport.
The commissioner’s office is notoriously picky about what kinds of people they allow to own Major League Baseball teams. This is why. No owner should be allowed to drag down an entire franchise without recourse, and in this instance, the only way to keep the Dodgers from being further devalued is to eliminate the McCourt family from the decision making process.
Pay them off, throw them out, fight them in court – I don’t really care how it happens. I just want to never have to think about Frank or Jamie McCourt ever again. Kudos to Bud Selig for taking one more step towards ridding us of them once and for all.
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I hope their experience with the McCourt’s causes baseball to be more embracing of potential owners like Mark Cuban, who, for all the faults people find in him, undeniably cares about the teams he owns and building the best quality product.
The fact that the comish’s office wants to be able to kick out the McCourts of the world is why Cuban will never be embraced. Any chance at all he could have held his tongue during all of this with the Dodgers?
Why should he have held his hypothetical tongue? (wow alliteration) Isn’t all the turning of blind eyes and lack of accountability the reason things got here in the first place? Moreover, I have a hard time believing the McCourts are the only owners benefiting from scenarios this. Other owners may not be as bold in so far as they aren’t using every trick in the book like the McCourts did, but I’m sure every franchise has it’s share of Remoras fattening up while tagging along for the ride.
Dave, what about the Pirates owner? Nutter or Nutty or whatever his name is. He obviously doesn’t give a shit. He’s operating a low cost and making profit probably off shared rev alone. Plus he swindled the city of Pittsburgh to pay more than enough for the stadium (claimed infastructure fees or something). If anyone needs their franchise taken away, it’s that guy.
Mark Cuban … a native of ….. Pittsburgh.
Oh, just imagine.
This is why you sell an MLB team to one with “cash”, and not all of their wealth tied up in properties … that can go up/down significantly with the market. But, the bottom line is that MLB seeks owners that will go along with each decision and not speak up.
Mark Cuban is far too progressive for MLB. Unfortunately.
Now if we could only be rid of Bud Selig.
Please read the report that Dave linked.
Isn’t it partially Selig’s fault for allowing it to reach this point in the first place? If he is going to be guaranteeing the debts of every team in baseball, shouldn’t MLB be taking closer looks at everyone’s books? That’s what any sensible surety would do.
That’s why they’re cracking down on teams over the debt ratio.
Allowing nine teams to fall out of compliance is cracking down?
.700 is really good in this sport.
The teams were already out of compliance. The report came out because baseball is starting to care more about it.
Those debt compliance rules have been in place for years and it has been totally within Selig’s discretion to enforce them. He turned a blind eye as nearly a third of baseball racked up reckless amounts of debt. Now, after three large market franchises have essentially become insolvent, he’s trying to do something about it.
Here’s a piece I wrote about it a few weeks ago.
http://www.blakestreetbulletin.com/2011/06/03/bud-selig-turning-a-blind-eye-to-baseballs-financial-mavericks/
Selig had a huge role in all of this. I see no reason to give him kudos for doing something he obviously had to, especially when that something is going to cause legal damage to the league one way or another, especially especially when he should have done something about this years ago if all this stuff is obviously that bad.
Baseball teams are the new banks!
“the McCourts have been and are still attempting to actively devalue a Major League franchise for their own personal gain.”
THE ROYALS SAY “HI”
I would wager that the Royals are profitable, and thus, not being “actively devalued”.
NOT BIG ON THE WHOLE KAUFFMAN / GLASS HISTORY THING, HUH JIMMY???!!!
LLLLLOOOOUUUUUDDDD NOISES!!
The article that’s linked above is extremely well written and explains very clearly exactly what’s happened to put the Dodgers in the situation they’re in right now. Frank McCourt is a smart man, but not a good man, and when you’re a bad man with power to abuse your position, bad things will happen.
The Dodgers not making payments? They’re in LA! There are infinite people there, and of the ones that watch baseball, due to historical significance, I’d hazard a guess that more than half are Dodgers fans.
Hell, if the Angels and Tony “You’ve Been Tonied!” Reagins can somehow maintain fiscal responsibility such as it is, why can’t the Dodgers meet payroll?
Kudos, Mr. Selig.
Wouldn’t Mark Cuban be better than all this?
Yes but Tom Hicks was better than this, so that’s not a hard standard to meet.
Selig is the same man who gave Loria a second franchise.
I’m sorry but the sooner Selig goes the better.
I was about to say… “Meanwhile, down in fLORIdA”.
Yup. The Expos say “Hi”.
“I’m sure every franchise has it’s share of Remoras fattening up while tagging along for the ride.”
Dave, not like you to be so stereotypical. But aside from Loria, I do wish someone would spread the excellent reporting that’s been done locally on the recent history of the Rangers’ ownership–before, during and after the wretched Hicks era. The current guys are hardly role models.
Four posts in a day! Is that a record for you, Dave?
These are the types of business dealings that really should lead straight to jail – though I don’t know if any laws have actually been broken.
Probably tax laws. You can’t have your company cover your personal living expenses without claiming it as income.
Heck, when my employer gives me a christmas gift, that’s added to my taxable income and I pay income taxes on it.
Anyone SERIOUSLY think $2,000,000/month in living expenses with no income taxes paid is legal?
Similarly, when they owed money as the Dodger’s owners and then strip assests to form different limited liability companies that’s arguably fraud aimed at the owners of that debt, it’s not a problem until and unless the Dodgers default, because with no failure to pay the fraud is irrelevant, but 10 seconds after the Dodgers go bankrupt or default on payroll that very definitely is relevant.
Forget jail, LAD fans should lynch ‘em.
A GREAT day for Dodgers fans….the next great day wil be when the team is sold to an owner who will restore the team’s place in baseball history, rebuild the farm system, and invest in the team on the field.
To all the Dodgers fans:
I feel really bad that you’ve all had to suffer under such a despicable POS of an owner and will continue to suffer this year as he fights MLB on this takeover. No fan deserves that.
I agree with Dave though…Kudos to Mr. Selig!!!
Any owner who can somehow get to the point where he can’t meet payroll in a market like LA should be dismissed as quick as possible. The team is one the tops in attendance almost every year, except this year.
Reading the Victorino article earlier, I couldn’t help but wonder if McCourt had anything to do with the Dodgers keeping $25,000 instead of getting Victorino back. Sickening.
Finally the McCourts get what has been coming to them. I’m glad Bud Selig came through with this denial. The McCourts would have just used the up front $200 million to their personal finance bank account. Like the article said, they’re just using the Dodger credit card for everything from flowers to trips to houses.
Moreso, ticket sales are in the hole as nobody wants to support a team with owners who care more about what kind of flowers they want for their mantle than if their SOLE INCOME won a baseball game. I sure hope the McCourts go into bankruptsy and spend the rest of their lives on the streets of downtown L.A. That is, if all the frustrated fans don’t kill them first…
Some of the comments that liken what has gone on with McCourt as similar to deeds of the past would have to back to the A’s in KC in the late ’50′s to find acts as irresponsible and outrageous as McCourts. In the A’s case, the owner had a business relationhip with the Yankee’s owner and basically subrogated the A’s interest to those of the Yankees. The Roger Maris trade be the most egregious example.
McCourts purchase of the Dodgers was fraudulent. His collateral for the loan from Fox to purchase the Dodgers was valued at 2X it’s actual value. That was proven when he was unable to meet the debt and Fox foreclosed, sold the property in question and found out exactly what it was worth. Baseball is well rid of a con artist and popinjay like McCourt.
“the McCourts have been and are still attempting to actively devalue a Major League franchise for their own personal gain. ”
The McCourts have no interest in devaluaing their own property, since it is their property. The only one who seems interested in that is MLB. Perhaps they have some cronies they want to be able to get hold of the Dodgers for a song and a dance, which is what will happen if the McCourts are forced to sell.
What does devalue all MLB teams is the message being sent by MLB. You can buy a team subject to our approval, and we approved McCourt, but if we want to take you down at any time for any or no reason, we can do so. Future investors will think twice before buying given the risk what is happening to McCourt can happen to them..
This is a franchise they fully own though, and gave up 125 million in primo South Boston property for the right to do so, as well as assumed a boat load of debt which MLB approved . They are one TV deal from being very healthy financially.
It’s not like the Dodgers have been horrible since he took over. He went out and signed Joe Torre and then traded for Manny Ramirez who carried them to the 2008 NLCS. They went to the NLCS in 2009 as well. In fact, they have went to the post season 4 times in 7 years
Every team has debts, and the MLB approved most of their debts, but the Dodgers have very healthy revenue streams and should be able to cover those debts, provided MLB approves the TV deal that seems very lucrative one for the Dodgers.
As for taking money out of a company you own, so what, that happens all the time. You can loan it to yourself, pay it as salary, bonus, whatever. The numbers provided in the link regarding salaries for him, his wife and children add up to half what Selig is making as commisioner each year. Loans have to be repaid, whether they are personal or corporate.
The fact that the Dodgers paid no tax is the norm for over 1/2 the corporations in the country. You would be amazed how many well known and successful corporations do not need to pay tax. Thats one of the benefits of being a corporation, you do not pay tax on income, only profits, and you higher expensive accountants to keep these to a minimum.
Hey partner… did you even read the article Dave linked?
I’m not going to put Selig on a pedestal, because the league obviously deserves blame for allowing such an awful person to become an owner in the first place, but we have to give credit where it’s due.
The situation is dire, and Selig nutted up and finally made the right decision, if years too late. Good on him.
This isn’t a situation that is just important to the Dodgers and their future and fans, it should also be important to every other baseball fan, because if McCourt gets away with this stuff with (relatively) few consequences, it sets a nasty precedent for other clubs.
Pretty much this right here. Selig had a chance to step in along the way many many times, and yet he chose not to until the situation was well out of hand. He did this because the backlash would certainly have come against him as well. The McCourts deserve everything they are going to get, but everyone who cares about the Dodgers, or the next franchise who starts wandering down this path, deserves that Selig actually steps in before its too late.
“Future investors will think twice before buying given the risk what is happening to McCourt can happen to them..”
Yeah, you’re right, there’s nobody willing to step in and buy a major league baseball team right now.
Clearly, you did not read the linked article and are not up to speed on what is going on in LA. I do agree that MLB operates in an unusual climate where it dictates the market for a team rather than let it play out, and taking away a team from a rightful owner seems like an abuse of power. MLB has to operate has both a single entity and as a collection of 30 individual businesses and the health of the game is of the greatest concern.
In the case of McCourt’s acquisition, it is a bit dishonest for the media to potray the purchase of the Dodgers as one that had no financial burden on McCourt. As you pointed out, he gave up his real estate in South Boston to make the purchase. So while he did not pay any real money, he did give up real estate. As for incurring loads of debt, he only did in the short term. Once in control of the Dodgers, McCourt effectively transferred his own personal debts to the team. In part, the Dodgers bought the Dodgers. He then further devalued the franchise by “selling” the stadium and ticket revenues to new entities for up front cash in the form of additional debt. He basically gave away the team parking lots and the Dodgers now pay for their use. The franchise does not even have access to ticket revenues any longer. And to add insult to injury, the Dodgers have taken on the burden of financing the McCourt’s well publicised living expenses. And now he wants the team to pay for his divorce.
To try and argue that McCourt has not devalued the franchise is folly. It’s in terrible shape and the market for it will be crippled if the purchasing party cannot get ownership of the stadium rights and ticket revenues. McCourt has drawn against the value of his franchise to the point that the team can’t even get a loan. This deal with Fox would have injected the franchise with some up front money to make payroll for 2011, but what about 2012? He would just mortgaging the future once again. And a large chunk of that money was going to the McCourts and not the Dodgers, which is why Selig rightly rejected the proposal. The sooner Frank and Jaime are out of the picture, the better.
thank jesus, at least there is someone with power who cares about the Dodgers organization. and go Kershaw tonight!! WOO!
why cant mccourt just sell it to cuban w/o any interference?
First McCourt does not want to sell
Second, by buying a baseball team like the Dodgers you are also buying a share of MLB, the rest of the owners and the head of MLB (Selig) must approve of any new owner due to the fact that their assets are all tied together.
how was mccourt approved in the first place, seems fishy to me
I’ve been silent on this whole McCourt thing and I’ve let the powers that be handle this so far. For two main reasons, I have no control of who runs the team and I’ve never really cared. I enjoy baseball and I’ve enjoyed going to Dodger Stadium, I have problems with the stadium and the team, and if they could have been improved if the McCourts were more moral about their money than that sucks. If the Dodgers eventually would go bankrupt and leave, I’d watch Angel games. In the end my dislike for the McCourts has been that they are the story of the Dodgers’ season instead of the bullpen injuries, underwhelming offense, and Matt Kemp’s league dominance thus far.
good, now lay the hammer down on the Wilpons.
I wonder how different the Mets situation is from the Dodgers and what/if Selig’s friendship with Wilpon is causing serious bias.
The Wilpons have never used the Mets to finance their own personal lifestyles at the expense of the organization’s financial health. What they did was poorly manage the team and tie up a lot of its investments in a Ponzi scheme, but their goal was always to make the Mets profitable and competitive. The McCourts’ goal was neither.
bad link. at least as of 9:52 EST.
It was updated with yesterday’s announcement and moved here:
http://itsaboutthemoney.net/archives/2011/06/21/commissioner-selig-frank-mccourt-must-go-a-petition/
Thank god he didn’t get the Red Sox. I hope that who ever buys the Dodgers does for them what New England Sports Management has done for the sox. Build a farm system and build to become a sustained contender.
That linked article was something else. McCourt has to sue now because bankruptcy is clearly not an option. In a bankruptcy he will have no chance of maintaining control and, in the likely event a trustee is appointed, you can bet the first order of business is a fraudulent transfer suit against McCourt. McCourt’s best chance is a hail mary litigation that allows him to settle out without being hit too badly.
McCourt dare not sue, I would guess. Remember MLB/Selig just finished a 1-2 month audit of the Dodger’s books, with the benefit of the guidance of a former chief executive of the team. I would suspect a good number of bodies McCourt hoped would stay safely buried have been unearthed. If he goes into court, it may be his last and most humiliating act of self emolation. And hanging out on the horizon still is Jamie, a creature without mercy and with a voracious appetite.
It’s a good thing that Selig is stepping in FINALLY but Bud is a scumbag too. He approved this highly leveraged sale to Frank McCourt in the first place and twiddled his thumbs during the whole affair. Selig’s rejection of the Fox TV deal is like a Mafia Don whacking one of his bosses who gets too reckless and is a threat to bring down the whole family. What happened to the Expos with Loria was just as disgraceful and he is gutting the Marlins for all they are worth all on Bud’s watch. Loria got caught putting revenue sharing money in his pocket and never suffered any consequences and then the problem mysteriously disappeared. The deal Jim Crane made to buy the Astros was highly leveraged like McCourt’s deal to buy the Dodgers and you have to wonder if there will be problems in Houston down the line.
Bud’s hand is being forced because the McCourts’ careless and above the law attitude is bringing the tent down on everyone. For those claiming the Wilpons cared about the Mets and tried to make them competitive just wait until that mess starts to unfold. The Wilpons are playing dumb now but they used Mets money to fund that Ponzi scheme, not personal holdings. That’s just as bad as McCourt using Dodger money for personal expenses. Bud became commissioner because he is a former owner and sides with and does favors for other owners. A new commissioner backed by the financially responsible and honest owners of the league(if there are any) will be necessary to rid MLB of these conniving and deceitful ownerships.