A FLAWED MCCOURTSHIP? HE ABILITY TO OWN, OPERATE QUESTIONED.Byline: Rich Hammond Rich Hammond Los Angeles Daily News sports writer. Instrumental in bringing the Los Angeles Kings hockey organization closer to the fans. He is the atypical "what a guy" to Kings fans everywhere. Rich Hammond on himself. Staff Writer Frank McCourt
Francis "Frank" McCourt (born August 19, 1930) is an Irish-American teacher and author. might win Major League Baseball's approval to buy the Dodgers by the end of the month, but his limited financial resources have raised significant concern among Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, sports executives and has led local businessman and philanthropist Eli Broad Eli Broad (born June 6, 1933) a native of Detroit, Michigan is a Jewish American billionaire who lives in Los Angeles, California. His last name is pronounced as rhyming with road. Broad is well known for his philanthropy and extensive art collection. to put forth what is believed to be a more attractive backup plan. A McCourt ownership likely would lead to a lower team payroll and increased ticket prices, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. three sources involved in top-level, day-to-day operations of professional teams in Southern California. The sources and experts in sports finance said the Boston developer is borrowing heavily to buy the Dodgers - a franchise insiders say is losing $40 million a year - because he has failed to find suitable partners for a $430 million deal that taxes his own resources. Broad's proposal wouldn't require partners, and reportedly he would ask current owner News Corp. for a small loan, which presents a stark contrast to McCourt's highly leveraged bid. But Broad's bid is only a backup plan. For now, at least, it's McCourt's game to lose, and that is causing significant concern. ``It could turn into a big mess,'' said one source familiar with details of the McCourt transaction. All sources involved requested anonymity because of their high profiles. Under baseball rules Baseball Rules are the rules for baseball played under three major rules codes, which differ only slightly. The North American professional leagues and many amateur leagues use the Official Baseball Rules, which are published to the public by The Sporting News; U.S. , McCourt can't comment publicly until the sale is resolved. ``I'd give him three years before he has to sell the team,'' another source said. ``He will either realize he can't do it, or he just won't be able to make payroll.'' McCourt has been unable to find financial backing in the three-plus months since he reached agreement with current owner News Corp. He was able to finance the sale largely through significant loans from Bank of America
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. and News Corp. In his agreement with News Corp., McCourt must get baseball's approval by the end of this month. He is expected to meet with baseball officials this week in Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. . It's money that matters McCourt is estimated to be worth, at most, $500 million. He's believed to be close to selling part of the waterfront land he owns in South Boston, but it is also believed the money he nets from that sale will go toward paying off the loans. ``It's like a high school kid who convinces his dad to buy him a car,'' said David Carter People called David Carter include:
Without backing, McCourt would have significant trouble running the team, and sources say he has been rejected by several potential partners because of concerns about his finances and because investing in the Dodgers is considered risky business. Also, published reports have indicated McCourt is resisting the idea of taking on investors who would want an active role in the daily operation of the team. Acquiring partners is not a simple process and often takes several months, but sources indicate McCourt hasn't made much progress. ``I think the lack of local support he has received answers a critical question,'' Carter said. ``For years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time Dodgers said they were losing money and nobody believed them. The fact that (McCourt) is having trouble finding investors indicates that they were telling the truth, and that people don't want to get involved largely because of that.'' During an offseason in which the Dodgers need significant offensive help, they have made no major moves. Meanwhile, the Angels and their new owner, Arte Moreno, gave Vladimir Guerrero Vladimir Alvino Guerrero (born February 9, 1976 in Don Gregorio, Nizao, Dominican Republic), and known in his native Dominican Republic as Miquéas (Spanish for Micah), is a Major League Baseball right fielder who plays for the Los Angeles Angels of Anaheim. , the best free-agent hitter available, a five-year contract. A baseball source said the Dodgers did not strongly pursue a top-level free agent, such as Guerrero or Miguel Tejada Miguel Odalis Tejada (born May 25, 1976 in Baní, Dominican Republic), nicknamed "Miggi", is currently the shortstop of the Baltimore Orioles Major League Baseball team. , because of resistance from McCourt's group when it comes to expensive, long-term contracts, and also because News Corp. didn't want to add a big salary and make the sale look less attractive. Forced instead to make trades to improve the Dodgers' offense, the source said general manager Dan Evans essentially has been handcuffed because other teams realize the Dodgers' deficiencies and are demanding top prospects in negotiations. Evans has said he continues to answer to managing partner Bob Daly, who will resign once the sale is complete, and Evans said last week it isn't his place to discuss the pending ownership change. ``The fact that they were unable to pull the trigger on a big deal suggests that the problems are already under way,'' Carter said. ``In that business you're either moving forward or you're moving backward, and I think the front office has been paralyzed par·a·lyze tr.v. par·a·lyzed, par·a·lyz·ing, par·a·lyz·es 1. To affect with paralysis; cause to be paralytic. 2. To make unable to move or act: paralyzed by fear. .'' Deficit clouds deal Aside from future payroll issues, the fact remains McCourt inherits a team that has operated at a loss of about $40 million for each of the past three seasons, a team News Corp. is so eager to dump it's helping McCourt pay for the sale. However he does it, McCourt will have to reduce that debt unless he plans to somehow incur it, and there are only so many avenues he can explore. ``On many levels, it doesn't look good,'' Carter said. ``I think the fact that the deal is almost entirely funded through loans makes it a big risk for Major League Baseball "MLB" and "Major Leagues" redirect here. For other uses, see MLB (disambiguation) and Major Leagues (disambiguation). Major League Baseball (MLB) is the highest level of play in North American professional baseball. .'' The Dodgers had a player budget of about $112 million last year, and as Evans is finding out this winter, it's unlikely to stay anywhere near that lofty level. The naming rights Naming rights are the right to name a piece of property, either tangible property or an event, usually granted in exchange for financial considerations. Institutions like schools, places of worship and hospitals have a tradition of granting donors the right to name facilities in to Dodger Stadium • • [ could be sold, but just last month, Edison International Edison International (NYSE: EIX) is a public utility holding company based in Rosemead, California. Its subsidiaries include Southern California Edison, and un-regulated non-utility assets Edison Mission Energy, a power producer, and Edison Capital. pulled out of its naming-rights deal with the Angels because of high costs. Plus, there would be a backlash from fans with emotional ties to Dodger Stadium. One source suggested McCourt might be able to generate a significant amount of money by increasing advertising signage inside the stadium and by ``trimming some fat'' from the team's operation, thus avoiding major changes. Others aren't so sure. ``Fox isn't stupid,'' said one source, referring to the division of News Corp. that runs the Dodgers. ``They were running a business. You don't think they were doing anything they could to get (revenue) out of that stadium?'' If all these problems exist, many have asked, why is the sale going through? ``Look at it from each group's perspective,'' one source said. ``Fox wants to sell the team, by any means necessary By any means necessary is a translation of a phrase coined by the French intellectual Jean Paul Sartre in his play Dirty Hands. I was not the one to invent lies: they were created in a society divided by class and each of us inherited lies when we were born. , and McCourt wants the team. Major League Baseball has a television deal with Fox, and that's a huge factor.'' Must win over owners A stumbling block stum·bling block n. An obstacle or impediment. stumbling block Noun any obstacle that prevents something from taking place or progressing Noun 1. could be the other owners, three-fourths of whom must approve the deal. They discussed McCourt's plan at meetings last week in Scottsdale, Ariz. If enough owners object, the deal will be sunk, though it's widely believed commissioner Bud Selig wouldn't schedule a vote unless he was sure of its outcome. A conference-call vote likely will take place this month. The other puzzling part, for outside observers, is how McCourt could draw such heavy criticism considering this is the third time he has tried to buy a baseball team. McCourt has a strong passion for baseball and often has talked in the past about his grandfather's part-ownership of the Boston Braves. But his bids for the Boston Red Sox The Boston Red Sox are a professional baseball team based in Boston, Massachusetts. The Red Sox are a member and currently champions of the Eastern Division of Major League Baseball’s American League. From to the present, the Red Sox have played in Fenway Park. (in 2001) and the Angels (in 2003) largely were derailed by financial concerns. In the case of the Angels, McCourt reportedly made a higher bid than Moreno, but then-owner Walt Disney Corp. went with Moreno because he could provide the money up front, while McCourt's bid was more complex. The basic economic numbers aren't in McCourt's favor. Forbes magazine estimates Moreno's personal fortune at $1 billion, and even he took on two limited partners last month. Owners who choose to ``go it alone,'' without significant partners, seemingly have far greater resources than McCourt. ``It doesn't look like a good situation,'' one source said. ``People who come into this (ownership) industry, they look at it from the outside and it looks easy. They think, 'I can do a better job than that guy,' but then when they get inside, it becomes, 'Oh (no), it's not that easy.' Unfortunately, I think (McCourt) is going to find that out.'' Rich Hammond, (818) 713-3611 rich.hammond(at)dailynews.com CAPTION(S): 5 photos, 2 boxes Photo: (1 -- color) McCOURT (2 -- color) MORENO (3 -- color) McLANE (4 -- color) LINDNER (5) Frank McCourt's estimated personal wealth of $500 million has led many to believe he does not have the financial power to operate the Dodgers. Jonathan Wiggs/Associated Press Box: (1) MONEY MEN (2) LOOKING AHEAD |
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