Unless Frank McCourt is able to receive a loan, the Los Angeles Dodger will be unable to meet payroll obligations through the end of the month, according to a report in the LA Times.
McCourt was able to secure a $30 million loan from Fox in late April, but those funds secured payroll only through the beginning of May. Payments due at the end of the month are the ones that are in jeopardy.
Major League Baseball vetoed a reported 17-year, television rights extension with Fox for the Dodgers that is worth more than $3 billion. McCourt has said that he would then have the ability to infuse $285 million in upfront equity straight into the club to meet payroll with the deal, but the league has said that until newly appointed trustee Tom Schieffer is done investigating the team finances, that deal is on hold.
"It will be a thorough investigation," Schieffer said to the LA Times. "I would anticipate it would be longer than two weeks."
Should McCourt be unable to make payment in May, the league could have the option to seize the club under the “best interests of baseball” powers that Commissioner Selig has. Could McCourt get another loan from Fox? According to the report, a source said that would be "very unlikely."
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 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
Follow The Biz of Baseball on Twitter
Follow the Business of Sports Network on Facebook