cost of claritin at walgreens nursing diagnosis coumadin toxicity express chemist co uk colic gripe elavil canada head office mobic medicine children lasix medicine youtube brand sale 10mg generic levitra what does a toradol pill look like overnight trazodone is lotrisone cream available over the counter can you get propecia from walk in clinic glucophage in the uk generic cipro zanaflex high bluelight isoniazid drugs com aricept by mail order adalat shelf life where can i buy tretinoin online in uk diprosone cream uk nizagara for daily use canada buy seroflo 200 sumycin medication how to get promethazine codeine syrup from your doctor 500 mg valacyclovir hydrochloride cardura discount medications mail order levlen nitrofurantoin by mail order web pharmacy uk etodolac from usa pharmacy overnight pariet online click here tadacip generic reviews does dulcolax cause weight gain what is metoclopramide 5mg realo discount drugs cape carteret nc tegretol 5mg tablets buy birth control alesse online provera generic release date cheap price for prevacid zyrtec 10 mg tabletki dawkowanie pharmacy has best price metformin can i buy viagra in usa what is erythromycin used for in babies tadapox for sale philippines order metformin from canada yasmin lawsuit update 2013 no rx propranolol online what is tretinoin 0,025 pills used for compazine prescriptions will you order phenergan canadian kamagra oral jelly no rx glucophage echeck genuine atorlip-5 best price speman echeck buy valtrex 200 where can i buy liverpool one vouchers what is the therapeutic dose for cymbalta ordering lisinopril india viagra professional; vs regular viagra overseas pharmacy no prescription yasmin florida himplasia forzest ordering online pharmacy lasix 40 mg po female cialis bonus pills medrol 4mg la thuoc gi drug market order brahmi anti anxiety drugs over the counter is carafate available over the counter propranolol akadimpex 40 mg tabletta can i get accutane in mexico is there a generic pill for evista benadryl generico what is purinethol tablets where can i get colospa pills pletal discount voucher generic nitroglycerin cream buy online lasuna generic pastillas redustat como se toman med cab omnicef can you buy paypal cheap haridra drugs similar to midamor • zovirax cream directions of use habana pharmacy miami better than trileptal how long does it take for neurontin to work for anxiety premarin phone orders asacol online cheap will toradol get you high pharmacies buy generic amitriptyline online order colchicine 1mg combined ciprofloxacin and tinidazole therapy phone in order for maxalt purchase triamterene pills vantin delivery trandate pills sweat actonel echeck generic proventil safe pastillas cytotec consecuencias viagra c best online store side effects of atorvastatin 80 mg comprar bactrim en argentina keftab over the couter bactroban online canada buy innopran xl in singapore penegra 50 usage side effects of prednisolone tablets in cats equine ivermectin wormer maxalt discounts codes where to find children;s benadryl how to get unisom drug buy prograf tacrolimus dulcolax with no rx statcounter global stats femara paypal buy propranolol mg houses for sale allington wiltshire order himplasia cheap prilosec spain allopurinol tablets for dogs alphagan online usa toprol xl 50 mg picture tinidazole overnight pharmacy when will generic femara be available order lithium pill ventolin usa sale protonix pills online in the usa where can i order digoxin nimotop iv dose atacand price canada rhinocort aqua coupon discount nizoral coupons canada how to buy serevent in london ampicillin reviews and dosage using aldactone bodybuilding suprax 40mg dostinex price canada suprax tablets 400 mg dulcolax obloz(ene tablete 5 mg how to import bentyl seroquel over the counter canada viagra soft tablets 100mg non prescription viagra jelly what is prednisolone tablets used for bactrim tablets online evista no prescription canada risperdal price comparison metacam or rimadyl for dogs grifulvin v usa how to use prograf how to use venlor stieva a forte cream 0.1 reviews can i cut 20 mg cialis in half online pharmacy anafranil trental drug in usa pharmacy pyridium over the counter in canada kroger pharmacy refill online health canada decadron generic valacyclovir good valtrex buy lexapro no prescription diflucan no prescription what is glucophage 500mg for safe order viagra canada pharmacy xalatan medicine children original reglan online buy benicar online cheap top 10 online albendazole sites actonel over counter uk sertralina de 50 mg engorda no rx prometrium online recall of lipitor 40 mg cialis jelly comprare buy evista tablets canada florida nizoral carbozyne cheap lipitor 10mg price comparison fincar comprare glyburide gestational diabetes pregnancy vitamin d3 erectile dysfunction doxycycline tablets buy online strattera online canadian does target have a generic for nexium maxalt generic available cheap singulair drugs seroflo 125 inhaler price what is toradol used to treatwhich uk site to buy cleocin is acai available over the counter lanoxin discontinued buyers of cytoxan canada what is tegretol cheapest place to buy renagel max menzies lawyers what is voltaren tablets used for what is finax used for ginseng now co uk safe website to buy generic clomid fucidin h cream ringworm crestor rosuvastatin 10 mg el viagra de hombre sirve para la mujer side effects of elavil amitriptyline canadian alliance of dance artists toronto professional how to order robaxin purchase cialis in usa canadian drug stores no prescription rosuvastatin side effects long term use what is generic for zyrtec d generic drug for requip what types of atrovent are there price increase cymbalta cyproheptadine weight gain reviews lopid initial dose healthy pulse rate 50 year old man is viagra generic safe korean ginseng plants for sale can you only get noroxin on prescription use nexium coupon online how to use nolvadex and clomid lithium 100ah battery is kamagra gold legal in uk aspirin canada prescription online doctor prescription oxycodone kirkland minoxidil reviews viagra side effects vision drug biaxin canada no prescription erexor cheap uk difference between singulair and generic montelukast generic rumalaya liniment usa pharmacy no prescription eurax sale sanofi aventis lantus coupons asacol legal in england costo de cytotec en colombia best drugstore face powder for oily skin legal buy clomid online canada 20 mg prozac and 300 mg wellbutrin buy benemid with paypal buy keftab quick Purchase nexium 40 mg online praziquantel dosage for schistosomiasis ed drugs list what is mircette birth control ordering actos confidence clomid and alcohol consumption buy generic asacol with bonus zithromax without insurance buspirone buy no prescription doxycycline hyclate 100mg cap vibramycin furosemide tablets side effects in dogs zovirax tablets online pharmacy has best price vermox zerit billig kaufen zyvox 600 mg drug interactions trazodone dosage recommended viagra sublingual pharmacies order prescription medication mexico watch antiviral online how to order sominex zyvox cost where could i buy accutane without prescription ordering valtrex no prescription get orlistat toronto remeron 30 mg 28 tablet fiyat? tofranil free shipping skelaxin side effects long term proair vs ventolin cost buy fincar without a script non prescription ginette-35 pharmacy eurax wanted online review ephedraxin online from usa nexium 40 mg 14 tablets spironolactone online uk nexium prescription treatment peptic can order nimotop canada minocin medication order donde comprar sildenafil argentina clomid overnight delivery buy abana 1 tablets codeine cough syrup addiction periactin medication side effects olanzapine pas cher generic brand cialis india what is pulmicort drugs buy ortho tri cyclen tablets us albendazole pills online in the australia atorvastatin tablets ip 20 mg what is celebrex 200mg cardura doxazosin mesylate diclofenac sodium enteric coated tablets alcohol purchasing advair diskus online brand viagra on the internet amoxicillin buy imitrex uk zyvox online ordering prevacid recall best diakof prices buy clozaril tablets online acticin overnight delivery buy urispas aleve medicine side effects buy ciplox in ireland buy astelin cheap canadian what are the side effects of taking singulair walmart pharmacy canada careers allegra commercial actress indocin from merck can you buy zestril drug discount current price atrovent domperidone 10mg and alcohol brand fml forte buy zyloprim doctors online anafranil cost pharmaceutical wholesalers eastern europe taking 2 unisom sleepgels express delivery generic viagra clomid with paypal payment provera racuna na visa kartici kytril online uk how much will mentax cost acheter brand levitra azithromycin 500 mg tablets dosage common side effects of zantac do you need a prescription for nolvadex protonix prescription only how to get off paxil safely harper cheap acivir pills view topic prescription genuine cialis professional best price good cymbalta anxiety medrol delivery can you give dog prednisone itching eurax on line generic zyrtec chewable tablets ampicillin medication online cheap aciphex no prescription rabeprazole the online drugstore chloramphenicol can you buy serpina in ireland order inderal online canada american indian law alliance ny no script lipothin mg sumycin online pharmacy uk metformin medicine in pregnancy post cycle therapy cytoxan how long does it take for flomax to begin working purchase isotretinoin online depo provera discount adalat online in usa best place buy plavix where to buy mentat drugs online para que sirve la amantadina getting off lexapro 10 mg alli trippy spain prinivil cheap price femara 20mg tab colchicine mg mexico capoten australia price depo provera usage imitrex next day shipping actoplus met where can i buy it where to buy zyrtec d legal buy antivert online canada long term side effects clomid terramycin pas cher italie long time side effects procardia nymphomax 100 buy ampicillin uk save pharmacy canada buy cipro pills zyban roche precio argentina online himcolin purchase kamagra oral jelly brand positioning abilify pills identifier sodium diclofenac 50mg dosage albenza dosage for children how to by hyzaar online malegra dxt paypal the online drugstore phenergan generic lipitor glass particles chloramphenicol purchase paxil express canada tretinoin 0.025 cream for wrinkles nexium by mail order can you order atarax what is the generic form of toprol xl amaryl drugs online purchases sale remeron erythromycin australia companies only snovitra super power bonus pills serophene sublingual dosage clomid cycle 1 success viagra usage and effects online shopping sites for medicines zestoretic 40 mg pharmacy kroger pharmacy lexington ky beaumont trazodone medications i pill paxil website discount card application indian strattera best price for real benzac benemid order by phone licensed pharmacy combivent online pharmacy zebeta pyridium order by phone cheap bactrim syrup risperdal spain generic viagra next day shipping alli discount prices prescription needed malegra dxt discount voucher generic lotrisone brand imuran buy emsam tablets uses cialis generico en mexico df zentel tablets dosage buy baclofen in uk actoplus met buy usa how to take nexium delayed-release capsules menosan sage drops reviews chloroquine 20mg tab should i buy viagra over the counter canada nolvadex 5mg tablets buy alli refill 119 fucidin h impetigo arava no prescription compare prices decadron canada head office buy bactroban without rx synthroid mail order india is generic colchicine effective buy clomid uk luvox cr 100mg capsule the side effects of metformin what is avalide mg used to treat seroflo spain mobic prices at costco low cost endep purchase menosan cheap use of clomid in women over 40 generic from abilify cozaar from canadian pharmacy buy matrix shampoo online india what percentage of aspirin tablets is acetylsalicylic acid is prevacid prescription only ayurslim cheap buy micronase online in usa does zoloft insomnia go away where to get cialis online fastest carbozyne uk delivery terbinafine alcohol after dulcolax cost in canada no rx venlor online how to order motilium what does cleocin t do generic aceon safe spironolactone and furosemide combination propranolol wzf 10 mg tabletki generic avapro in brand name mg how to get actos ventolin overnight shipping cheap pastillas para mantener una ereccion duradera over the counter viagra sublingual buy acticin online reviews where to buy wellbutrin ointment glucophage 850 mg tablet buy viagra uk review erythromycin mexico free prometrium coupons pharmacy express belize how much does celebrex 200 mg cost mail order generic cleocin fertility medication after clomid comprar roacutan online cleocin mail order india buy maxaman new zealand online side effects of singulair chewable tablets cialis super active for sale online generic floxin uk paypal how much do promethazine cost tadacip ordering online pharmacy generic pills for prometrium glycomet discount dulcolax daily use reviews cheap generic sinequan where can i buy infant motrin retin-a 0,025 online order us national board pharmacy cytotec phone orders order amitriptyline 10mg eldepryl 100mg cheap flexeril dosage for tmj phenamax mg buy order premarin cream how to take levothyroxine vasodilan medication side effects order generic serevent is there a generic form of lexapro available buy generic atorlip-5 online buy prograf australia buy tenormin without rx what doses does prilosec come in buy nizoral online uk remeron tablets side effects accutane for sale philippines danazol price india prescription prevacid 30 mg unisom sleepgels max dose what is the minimum dosage for viagra claritin price cvs nizoral dandruff shampoo australia
Home Maury Brown Sizing Up the Dodgers Bankruptcy to the Cubs, Rangers, and Coyotes

Like Shoot to Thrill - An AC/DC Tribute on Facebook!

An authentic tribute of AC/DC that covers the best of the Bon Scott era and the best of Brian Johnson's material

Who's Online?

We have 741 guests online

Atom RSS

Sizing Up the Dodgers Bankruptcy to the Cubs, Rangers, and Coyotes PDF Print E-mail
User Rating: / 18
PoorBest 
Written by Maury Brown   
Tuesday, 28 June 2011 00:58

DodgersMajor League Baseball has never been more prosperous. But, in the span of just 3 years, as many clubs in the league have been voluntarily placed into bankruptcy. In 2009, the Tribune Co. placed the Chicago Cubs into bankruptcy as a technical move to help expedite the sale, which was speedily approved by Tribune’s creditors. In May of 2010, the Texas Rangers entered bankruptcy in what was a contentious and difficult process with the creditors, and Monday, the Dodgers became the third as Frank McCourt’s beleaguered club, mired in debt, joins these unfortunate ranks. To place it in perspective, the last true bankruptcy of an MLB club before that was 1993 with the Baltimore Orioles. Before that, it was 1970 with the Seattle Pilots.

In looking at the Dodgers, there are the two recent bankruptcies, but also the 2009 bankruptcy of the Phoenix Coyotes of the NHL.

Here are the similarities (and differences) between the four.

Tom Hicks and the McCourts Self-Inflicted Woes

With the Texas Rangers, former owner Tom Hicks got around MLB’s debt rules by setting up Hicks Sports Group, a holding company which was an umbrella over the Rangers. Borrowing against the HSG as opposed to the Rangers, Hicks racked up half-a-billion in debt, and defaulted, throwing the Rangers in chaos.

The Dodgers situation is similar in that a reported $100 million was funneled out of the Dodgers to Frank and Jamie McCourt to live an opulent lifestyle. But Frank McCourt sank the Dodgers deeper into debt to the point of being $500 million in the red. Add in the divorce of the couple and Frank McCourt is floundering in so much debt that is self-inflicted, he may have bumped Tom Hicks from the ranks as the most hated owner in baseball.

Has MLB Turned Down TV Extensions Before?

Frank McCourt has said that Commissioner Selig is “un-American” and today said, "He's turned his back on the Dodgers, treated us differently, and forced us to the point we find ourselves in today."

McCourt is referencing the league’s rejection of a proposed television contract extension with FOX. The deal – worth as much as $3 billion – would have $385 million of it up-front. But, there is a catch. Frank and Jamie McCourt reached a settlement by which $173.5 million of that would have been used to settle their divorce and pay legal fees. Selig said in a statement today that, “We have consistently communicated to Mr. McCourt that any potential solution to his problems that contemplates mortgaging the future of the Dodgers franchise to the long-term detriment of the club [...] would not be acceptable,” adding that not granting the extension was in the best interests of Baseball.

If McCourt has done his homework, he’ll know that this isn’t the first time that the league has done this. In fact, it happened most recently with Tom Hicks and the Rangers.

The reasons for that rejection were very similar. Hicks had placed the Rangers in debt through loans acquired through HSG, and was going to use a television extension with FOX to pay down debt.

As is the case now, MLB blocked that deal saying that it was not going to be used to improve the club or its team.

Hedge Funds, the Rangers, the Dodgers and MLB

The nastiest part of the Texas Rangers bankruptcy occurred when the HSG debt hit the open market and was gobbled up by hedge funds, namely Monarch Alternative Capital, a “predatory” hedge fund. Monarch didn’t care a bit about cozy relationships with MLB such as other large banks had, and was looking to extract as much out of the Rangers sale as possible, regardless if Chuck Greenberg and Nolan Ryan thought they were only going to have to deal with the Rangers debt, not HSG’s.

The particulars are a bit different, but a hedge fund is in play with the Dodgers. Unable to get any cash to make payroll and remain a debtor in possession of the Dodgers through bankruptcy, McCourt has enlisted hedge fund Highbridge Capital Management LLC which is owned by JPMorgan Chase & Co. (JPM). As it’s a hedge fund, the interest rate is exceptionally high – 10 percent. The deal would let McCourt have access to $60 million now, and if the bankruptcy court approves it, an additional $90 million.

According to Bloomberg News, Highbridge would have first claim on the Dodgers’ assets, gets a $4.5 million deferred commitment fee, plus 0.5 percent of the unused part of the loan, payable monthly.

MLB, clearly looking to keep another hedge fund from entering the mix, will likely approach the court in a hearing tomorrow and say that they can provide funding at a lower interest rate, something that MLB did during the Rangers bankruptcy to help wade through the legal process and keep the club running with as little impact to the bankruptcy proceedings as possible.

An Auction Process, Albeit a bit Different

The Texas Rangers were auctioned off to a group led by Nolan Ryan and Chuck Greenberg. In 1993, Peter Angelos beat out Jeffery Loria at auction.

An auction is part of the Dodgers scenario envisioned by McCourt, but it’s a bit different: it centers on the television deal.

In the bankruptcy filing today, a request for a "competitive sale process" on the television extension was asked. The current Dodgers deal with FOX runs through 2013.  The earliest the club can begin to negotiate with other networks would be Nov. 30, 2012.

What McCourt envisions is getting over the hump through all the debt with an auction for the TV deal. In the most likely scenario, Time Warner Cable would jump into the fray after inking a 20-year deal with the Los Angeles Lakers.

Currently, FOX hasn’t been willing to push the extension deal with McCourt knowing that, as was the case with Hicks and the Rangers, when new ownership lands with the Dodgers the extension will be approved by the league.

The auction process would be a gamble for FOX. Siding with MLB could mean losing out to TWC. Of course, FOX probably has a whole lot to say about this, and MLB will make its case as well.

The Power of Sports Leagues In the Context of the Phoenix Coyotes Bankruptcy

We mentioned the Coyotes, and how they relate to the Dodgers is a bit distant.

With the Coyotes case, the court rejected Jim Balsillie’s higher bid for the Coyotes siding with the NHL who put $140 million on the table saying that they could get a deal done to keep the club in Phoenix.

Balsillie had designs to purchase the club and move them to Hamilton, Ontario, Canada, something the NHL did not wish to do.

I said it was a distant relationship to the Dodgers, and here’s why: the key factor in the Coyotes deal was the power of sports leagues to control clubs in the context of relocation. The Dodgers are, of course, not relocating.

The issue of the powers of sports leagues over their clubs is a looming and powerful matter. McCourt is challenging “the best interests of Baseball”. He will look to the court to trump those powers. If the Rangers auction is any example, the court could win.

MLB, the Rangers, Dodgers and Seizing Clubs

Under the league constitution, MLB can seize control of clubs that fall under bankruptcy, or if they miss payroll.

MLB could –repeat, could – seize the club, but they're wary of challenging the bankruptcy court.

Last year, the league very nearly did so with the Texas Rangers. In fact, in an embarrassing moment on a conference call with the Judge Michael Lynn who was overseeing the bankruptcy, a lawyer who thought the call had ended said, "If [Lynn] doesn’t confirm the (bankruptcy) plan, we’ll just terminate the franchise. We'll take over the g--damn franchise."

Lynn tore into the league’s lawyers at a later hearing, but the threat was out there and was something considered. Still, the trigger was never pulled.

This case with the Dodgers, as it was with the Rangers, Coyotes, and Cubs, are all different. While there are slight similarities, the core issues are hard to point to and say that they lend themselves to what might happen with the Dodgers.

This much does seem certain: it will be some time before the Dodgers' financial woes exit the courts. It’s possible that we could still be talking this case into the upcoming off-season.


SPECIAL BUSINESS OF SPORTS NETWORK REPORTS:
The Labor Battle in the NFL. See BizOfFootball.com for details

Welcome to the 2011 Business of Sports Network Autism Challenge


Maury BrownMaury Brown is the Founder and President of the Business of Sports Network, which includes The Biz of Baseball, The Biz of Football, The Biz of Basketball and The Biz of Hockey, as well as a contributor to FanGraphs and Forbes SportsMoney. He is available for hire or freelance. Brown's full bio is here. He looks forward to your comments via email and can be contacted through the Business of Sports Network.

Follow Maury Brown on Twitter Twitter

Follow The Biz of Baseball on Twitter Twitter

FacebookFollow the Business of Sports Network on Facebook

 
 
Banner

Poll

Should MLB Force Jeffery Loria to Sell the Marlins?