Based on final financial numbers submitted to Major League Baseball last year, the Los Angeles Dodgers are on pace to lose $27 million, according to league executives. The losses this season could be worse, should declines continue through the second half of August and through September.
The losses are tied to the decline in attendance. Ticket sales, parking revenue, concessions, and other related revenues are all attributed to the decline. Television revenues will remain flat compared to last year. Frank McCourt is seeking to auction off future television rights through a Delaware bankruptcy court. The action is being requested through the courts as MLB rejected an extension from Dodgers with FOX. That deal would have seen $385 million in up-front payments, but the league scoffed at the deal as just $235 million would have gone to the Dodgers. The rest of the balance would have gone to McCourt to pay for legal bills associated to his divorce from former wife, Jamie.
Also, Bill Shaikin of the LA Times is reporting today that based on court documents that Dodgers are likely to lose $42 million since 2009. The year prior, Manny Ramirez, a huge marketing draw, arrived in the second half of the season. The team went on to win the NL West and NLCS that season and in 2009.
Other information from the court documents filed Friday, according to Shaikin:
- The Dodgers owe severance payments of $1.025 million to former executive vice president Charles Steinberg and $254,800 to former president Dennis Mannion.
- The Dodgers paid $324,546 last April to Kroll, the consulting firm that employs former Los Angeles Police Department Chief William Bratton. In the wake of the Bryan Stow beating, the Dodgers retained Bratton to lead a Kroll team to develop a long-term "security blueprint" for Dodger Stadium and the surrounding parking lots.
- The Dodgers Dream Foundation, a club charity, was penalized $4,080 by the Internal Revenue Service. The Dodgers have reimbursed $361,432 to the charity to resolve an investigation by the state attorney general.
- The Dodgers spent $5,630 on "Boston Red Sox tickets for McCourt family and guests." The filing does not specify the games for which tickets were purchased, but the payment was made in June 2010, a month in which the Dodgers played the Red Sox in Fenway Park.
Maury 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, and is a contributor to Forbes SportsMoney blog.. He is available as a freelance writer. Brown's full bio is here. He looks forward to your comments via email and can be contacted through the Business of Sports Network (select his name in the dropdown provided).
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