chigualos cortos salon provera 10mg information rimadyl side effects for dogs doxycycline hyclate uses treatment metpamid tablet exelon corporation stocks tylenol arthritis pain himcolin gel price purchase antidepressants online buy thyroxine without prescription cialis 100 mg online no prescription vasotec dosage for dogs finasteride 1mg india inderal 40mg 80mg mincorp mn lottery cost of leukeran for dogs percocet dosage side effects generic viagras from india imiquimod cream for molluscum over counter viagra vitamin e deluje na penis salbutamol nebulizer medication buspirone 5mg side effects prozac withdrawal symptoms side effects prednisolone for dogs 5mg levamisole cocaine side effects westhroid side effects cialis without prescription inderal dosage for migraines midamor manufacturer refurbished phentermine 37.5mg adipex p online ivermectin scabies treatment for dogs natural replacement for cialis tadafil softsule tuf 20 albendazole dose for pinworms works like viagra over counter online pharmaceutical medications viagra vs cyalus cheapest generic cialis india periostat prescribing information provera 10mg to stop bleeding pheromones for men to attract women rapidtabs legal shield acticin side effects vitamin c overdose bupropion hcl 150mg and alcohol mwtformin for wwight loss in canada elavil for sleep disorders himcolin benefits of probiotics gabapentin get you high androgel side effects cheap diazepam from india cialis black 800mg reviews norfloxacin antibiotic doctor propecia for sale online walmart pharmacy price check viagra how much is vardenafil at cvs minomycin dosage cheap viagra pills india elocon lotion 1 cialis name brand cheap metallica through the never soundtrack cytoxan manufacturer herbal viagra green box berifen 75 ampollas buy fluconazole 50 mg capsules how to order viagra without pre reductil diet pills obesity amiloride 5 mg side effects nolvadex for sale nyc metronidazol para que sirve etodolac 500 mg tablet nolvadex for men drug side effects dermasone betamethasone valerate for dogsdermizol donde comprar cytotec cholesterol tests kits buy lasix overnight no rx actos pioglitazone hydrochloride indinavir side effects buy viagra in ontario levitra generika preisvergleich kamagra gold 100mg review celecoxib celebrex contraindication betnesol tablets dosage how long does acyclovir take to work benicar hct generic equivalent real propecia flagyl for dogs medication amoxil and alcohol interaction lamictal for depression medication canadian livitra septra ds side effects cost of levitra in canadian pharmacy lumigan for eyelash growth cost uk pharmacy online no prescription garlic bread recipe for bread machine floxin eye drops lumigan eye drops 0.01 pinamox uses for witch irbesartan generic for finax generic propecia buy brand name viagra online doxrid doxycycline on line lariam purchase abc online pharmacy canada lozol for sale online synthroid side effects and hair loss best price viagra from uk remeron generic side effects lortab 10 mg mexico bentyl buy amytryptline garlic bread recipe with garlic powder buy flagyl 200mg spain meclizine 12.5 mg tablet par tamoxifen drug interactions sample free herbal viagra paracetamol toxicity emedicine levitra 100mg overnight delivery colcrys 0.6mg vermox rezeptfrei deutschland donde comprar cialis seguro zithromax ringworm doxycycline vibramycin side effects paracetamol contraindications arthritis medications list tramadol side effects medications hair loss zyprexa for anxiety and sleep order viagra pills online nizagara 100 reviews sildelafilo genfar prevacid coupon offer viamax sensitive gel vidalta bosques de coniferas zooloft comprar online cost of levitra at savon pharmacy flagyl 500mg antibiotics medication pentrexyl 500mg galenika over the counter clomipramine diclofenac mastercard online us cialis prescriptions viagra on line australia take viagra when taking cialis prometrium 100mg capsules vaginally amoxicillin 500mg capsules antibiotic uses cough syrup on line lipitor side effects medication pulmicort inhaler medication marcumar warfarin viagra professional mexican pharmacy anti inflammatoire et viagra pergotime in english what is a thespian himcolin gel himalaya vigrx review results does isotrex stop oil production novolog sliding scale dosing liquidex for sale doxinyl medication for depression vidalista 20 reviews ivermectin for dogs with heartworms accutane online pharmacy canada order strattera how to get codeine cough syrup online buying viagra in spain how much cost of viagra in india raymeds pharmacy times tretinoin gel 0.01 benefits benicar lawsuit updates 20 mg lisinopril sale no perscription napflam tablets on sale duvadilan indications isoxsuprine order generic viagra valor comercial para el misoprostol atepros drug mart hydrodiuril 25 mg side effects fast shipping for lasix glipizide dosage generic cialis professional 20 mg benadryl ingredients medicines famciclovir drug side effects xeloda chemo treatment side effects crestor side effects rhabdomyolysis rhabdomyolysis symptoms penegra 50mg buy fluoxetine online cephalexin 500mg no prescription allopurinol long term side effects cockapoo dogs information op oxycontin online can i buy silendifil citrate at boots how to use the pulmicort flexhaler instructions tadapox available in kerala news atosil tabletten gegen best canadian pharmacy cialis rogaine for men reviews lumigan 0.01 generic phenergan medication phenergan misoprostol buy uk letrozole side effects infertility zetia side effects zetia recall reglan side effects in dogs zyvoxid 600mg calcium antivert 25 mg meclizine sominex maximum dosage canadian neighborhood pharmacy reviews caffeine overdose symptoms cups diamox side effects doctor combivent inhaler side effects dynamogen solution orale rythmol sr vs rythmol cialis price in lebanon viagra triangle chicago macrobid for uti in pregnancy furosemide law suits caverta 100 tablets trimetabol usopen ordering cialis online canada suprax online without prescription drugs without prescriptions from india pharmn norx caffeine anhydrous 1 3 7 trimethylxanthine cialis for sale 40 mg levamisole for fish vente de viagra sans ordonnance ibuprofen side effects ibuprofen 800mg water pills and weight loss starcef 2008 online pharmacy without prescription atrovent inhaler medicine side effects buy once daily cialis esquina carlos gardel xenical singapore pharmacy zyrtec for children dosage levamisole dewormer for cattle dubai pharmacy online frumil 5 40 machine screws diameter sertralina 50 mg prospect does topiramate alter your metabolism manfaat meloxicam online mexican doctor consultation dilantin side effects long term use vasotec contraindications for massage tamsulosin hcl 0.4 mg decadron side effects doctor hpb approved generic viagra in canada aap ki adalat latest zithromax purchase viagra generique percocet dosage diane keaton movies with sarah jessica parker bactrim antibiotic side effects hives cialis online prices cholesterol diet recipes folcres panalab laboratorios torsemide 20 mg prices haldol side effects define pheromones in humans viagra insurance online viagra cannada prednisone orders canada sotalex medication for anxiety cost of generic sildenafil metronidazole and shandy viagra online singapore cialis with no prescription needed syrup septran side effects of colcrys medication rimadyl side effects for humans shoes alegria amphetamine salts 20mg tab where can i buy omifin penegra price in pakistan minoxidil 5 for women amantadine canada buy nizagara in australia how to find real cialis on the internet northwest pharmacy canada pharmacists costo viagra farmacia levitra dosage vardenafil is albenza over the counter daily cialis without a prescription cialis prescription in houston legit overnight antibiotics cialis and viagra for sale starlix medication indications best ed drug powpill 100 chloroquine dosage rheumatoid arthritis treatment aspirin 81mg classification biorezonanta timisoara viagra purchase with discover levoxyl recall 2013 alternatives nizoral canada zoloft withdrawal symptoms mayo clinic percocet indian pharmacy 5mg generic cialis want to buy cialis online cheap brand name viagra on line colchicine and gout treatment buy generic cialis mastercard suprax 400mg and alcohol how to buy premarin without rx cataflam 50mg tablets pain dosage famvir 500mg treatment grifulvin v overnight how much is viagra without insurance cymbalta medication zentel albendazole dosage misoprostol en maldonado robaxin 500mg methocarbamol reviews max pill pharmacy cb1 reviews piadas brasileiras ciprobay drug info asia viagara online spiriva patient assistance boehringer ingelheim viagra prezzo atarax side effects anxiety avelox 400 mg moxifloxacin isoptin sr 240 mg is how many ml viagra from mexico city prandin generic on line cheap drugs walmart price for viagra levitra coupons discounts floxin otic solution 0.3 vilches chiles prednisone online purchase escrow refills online pharmacy augmentin antibiotic 875 mg cialis in sri lanka levitra professional vs levitra terramicina oxitetraciclina uses pharmacy times continuing education answers diclofenac sodium 50mg uk supply generic viagra canada rx crestor 20 mg 28 film tablet propecia before and after women acnelyse gelish gel plavix manufacturer coupon yasmine petty wikipedia bactroban mupirocin ointment cost hyzaar side effects doctor amoxicillin and clavulanate potassium 875 mg 125 mg mesterolone 25mg tablets cara gugurkan kandungan viagra suisse ordonnance advantage one federal credit union michigan xenical weight loss medication rohypnol achat viagra pay by check amoxicillin dosage for children with sinus infection 606 pharmacy rx world lisinopril no prescription generic benadryl ingredients online meds without prescription buy female viagra provigil depression medication cialis shipped from united states lamisil foot cream website zantac side effects medications trental side effects pentoxifylline diclobru tablets ventolin inhaler coupons walmart ampicilina 500 mg prospect samonas therapeutic listening in counseling adalat sony tv serial latest episode 2013 where to buy qsymia in canada kamagra 100 mg chewable tablet 248 norstan inc pleasant prairie wi outlet pravastatin 20 mg what is it for my super pharmacy supradol ketorolac english bulldog vigrande 100 vegera sildenafil 50mg finasteride medication for hair loss salzarex tadalafil 20 walmart $10 drug list diflucan side effects discharge temovate cream 0 05 uses for apple lincocin injection antibiotic nizoral anti dandruff shampoo reviews lagatrim forte indications cialis erection pictures citrate test microbiology organisms eulexin schering plough animal health motilium tablets vytorin cholesterol drug coupon benazepril hctz 20 12.5 side effects order birth control pills flovent side effects for children doxazosin mesylate 2mg photo kamagrashop nlb insulin sliding scale formula prozac and alcohol effects corega denture adhesives clomid cost indocin medication indomethacin cheap cialis online india doyxcline no prescription dyazide side effects triamterene hydrochlorothiazide enapren 5mg effects combivent samples drugs scrips onlinee catafast medicine man benazepril hcl 20 mg tablet clenbuterol side effects athletes prayer comprar bactrim buying bystolic without a prescription filagra super active viagra from dth canadian pharmacy brand viagra canadian viagra sales toradol 10mg po rxrelief card reviews buy tadalafil cheap high blood pressure and viagra viagra indien furacin ointment for dogs metformina clorhidrato winthrop name brand viagra ventolin syrup side effects buy viagra with american express card furacin ointment wound prozac uses and side effects haloperidol 5mg image eltroxin side effects tablets with windows flagyl 500mg antibiotic dose buy viagra tablets online erectile dysfunction sample packs celebrex et paroxetine watson 540 lavestra reviews on fifty fluoxetine price cephalexin 500 side effects in dogs 200mg generic viagra sotalol side effects betapace sotalol sinequanone clothing dress tinidazole treatment for bv cialis samples online flexeril information sheet order promethazine with codeine online linezolid antibiotics drugs for acne cleocin t gel for acne buy imitrex without prescription sotalex medicine cabinet motilium side effects patients 24 7 pharmacy inderal laxifen tablets with keyboards dopareel side effects buy cleocin lotion online seroxat cr 12 5mg valium warfarin diet restrictions list alli 60mg hard capsules imitrex generic sumatriptan buy100 mg of viagra pills sildenafil 100 mg cefabiot suspension training tadalafil canada online pharmacy kosovarja numri me iriver omeprazole 40 mg capsule side effects thyroxine tablets online como comprar disgrasil pastillas toradol pain medication how long do subutex withdrawal symptoms last amphetamine salts 5mg puppies for sale claritin coupon antihistamine paypal accepted candadian pharmacies furolin 100mg online doctor prescriptions xanax purchase antabuse canada no prescripton sureway madisonville ky sales ad ramipril 5mg ketorolac 10mg toradol motilium no rx zenerx reviews online drugstore without prescription percocet withdrawal symptoms last how long latisse md reviews viagra vendors android launchers maxalt generic discount tramadol for dogs 50 mg 284 canadian family pharmacy generic viagra rts publix pharmacy diovan topiramate medication weight loss benemid classification of bacteria where to buy nitroglycerin citalopram hbr 20 mg revatio 20 mg side effects xanax side effects metrogel 1 metronidazole prices atacand from canada phexin boats us can i buy antibiotics online latisse md scam erectalis cipla share sotalex 160 retin a creams over the counter germany
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 658 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?