Dodgers BANKRUPT

McCourt really is a grade-A dewshbag.

hopefully one of the sport's premiere teams will find someone worthy of owning them.

 

I wonder if this ends up being a deal like Mario Lemeaux (sp?) and the Penguins, where players/creditors end up with equity.

of course, MLB bars teams from offering equity to players as compensation, so maybe not?

 

When the Texas Rangers went bankrupt A-Rod was one of their largest creditors. When the team was sold all were paid off. I would think when the Dodgers are finally sold (please please be to Mark Cuban) McCourts will have to use Their proceeds to pay off all creditors. Selig was doing Fox a huge favor by getting them off the Dodgers in turn Bud did Fox a favor on the leagues T.V. Deal. McCourt and her husband are total scum and hopefully will be gone soon.

 

+1 to Cuban

 

forbes put the dodgers most recent value at 800 million ( http://www.forbes.com/2011/03/22/mets-yankees-phillies-dodgers-baseball-valuations_slide_4.html )

i wonder how much the team will sell for?

i agree - the mccourts have been driving that freight train straight towards a cliff...and the engine just went over. cuban may not be what MLB wants...but he's one of the few people out there willing to buy them...and that has the cash on hand to fix them. they should have agreed to sell the team 2 years ago when the divorce was made public - would have saved a lot of heart ache for dodgers fans, and for themselves.

 

Cuban definitely isn't what MLB (at least, the other owners) want, but he is definitely what they need.

 

wouldn't it make more sense to sell the stadium and lots and keep the team?

 

when bill dewitt's group bought the cardinals, they paid 150 mil for the team, stadium, and garages/parking lots. they then sold the garages and parking lots for around 100 mil - so there's obviously money for the mccourts there.

 

Selig will sieze all "Dodger related" assets that came in the original sale....

A trustee will have to rule that way since he leveraged all of it to the hilt....

 

How is it possible to drive an LA sports team into bankruptcy? I suppose the answer to that is "you really have to try hard to do it, and you want to really do it"

 

I dunno. on one hand, other than the Lakers, LA isn't really a sports town.

on the other hand, you'd think TV money alone for this market would let you cash flow.

of course, buying a team with debt, then adding debt to fund your lifestyle, then going through a high-profile and bitter/litigious divorce doesn't help.

 

uh-oh, anyone buy this story of their bank accounts being frozen? if their having issues paying probably 500-1000 bucks to these guys, what's gonna happen when manny's millions come due?

http://sports.espn.go.com/los-angeles/mlb/news/story?id=6725971

 

gives new meaning to the phrase "rubber match", eh?

 

Actually in Chapter 11 your accounts can be frozen (especially w/large amounts) until the Judge grants permission to use the money by a motion that is made right away. Certain banks like Wells Fargo are even more infamous for freezing accounts in all types of bankruptcies.

Basically, everything is frozen with the filing of a corporate chapter 11 and the judge has a series of quick rulings to allow certain bills and operations to keep being paid pending the case. This are based on "First Day Motions" you file with the petition. You basically write out ALL of the operations of the business, bills, ongoing liabilities, etc and the judge approves or disapproves them.

 

in a case where a lot of employees (ushers, ticket booth agents, etc) make minimum wage or thereabouts and others (the players) make huge amounts of money per game, is there any triage process for paying some employees and not others? i.e. will the support personnel get paid and the players won't?

 

Yes, and that would be laid out in the motions and order(s) filed. If a business has cashflow and isn't facing imminent death, the judge will usually authorize expenses to keep it operating. In this case, you could safely assume that enough staff to maintain everything will keep getting paid. However, there may be some put on leave.

I think that in order to make money you keep paying the players, too.