This is just a breaking story we’re still getting information on, but we’ve heard that Major League Baseball will soon announce that it is taking over all operations for the Los Angeles Dodgers due to a lack of funds within the organization. The MLB will take over financial operations and move from there, likely blocking any moves the team would make as far as adding payroll goes.
If true, this is shocking news for one of the cornerstone organizations in all of baseball. A major market team suffering so badly from money problems that it has to be taken over by the league is unprecedented in Major League history. While the McCourt divorce situation has been incredibly ugly and has no doubt done serious damage to the team’s financial situation, no one could have seen things getting to this point.
We’ll have more on this shortly as we get more updates.
Frank and Jamie McCourt’s lengthy and terribly expensive divorce proceedings have all but destroyed the organization’s financial solvency, but Frank McCourt has refused to sell his share of the team, or any part of it.
A team recently valued at $722 million by Forbes (in 2009), in the No. 2 media market in the country somehow cannot pay its bills.
It might have something to do with the fact that the McCourts lived a ridiculously extravagant lifestyle. It’s so bad that they even took out a $140 million loan against future Dodgers ticket sales, of which $20 million went directly to funding that lifestyle. And here comes the best part: Thanks to create accounting, the McCourts paid no federal income taxes on their $108 million in earnings from 2004 through 2009.
This all comes on the heels of the awful publicity the Dodgers organization got following the brutal beating of Giants fan Bryan Stow on Opening Day outside of Dodger Stadium. Frank McCourt’s response to that incident was embarrassing to the franchise, and the move by Major League Baseball to take over the franchise is just another insult to a once proud organization.