Frank McCourt has a "slush fund," secret partners and pays his kids to do nothing

14 Comments

John Weinbach of FanHouse reports some more unseemliness from the land of Frank McCourt and the Dodgers:

Over the past 18 months, the Los Angeles Dodgers paid nearly $4 million
in “consulting services” to [the John McCourt Company], an entity that
has done virtually nothing for the club, even as the team has made a
concerted effort to raise ticket prices, trim payroll and acquire
players on the cheap. Moreover, the club paid two of Frank and Jamie
McCourt’s adult sons large salaries — $400,000 and $200,000 per year,
respectively — for services that are undefined and could not be
described by either Frank or Jamie McCourt, according to court documents
filed in the couple’s divorce case.

Jamie McCourt’s attorneys call the John McCourt company a “slush fund” which Frank uses to hide money.  My guess is that she’s less critical of the big salaries her kids make for apparently do-nothing jobs.

In addition, there are apparently two limited partners in the Dodgers — guys no one ever knew about, but who provided considerable funds to the McCourts to buy the team — whose debt gets converted into “sizable equity” in the team if the McCourts default on the loans.

On the one hand this is shocking — and Josh Fisher does his excellent-as-usual job breaking down all of the implications, complete with an apt comparison to the Texas Rangers, who are poster children for what happens when good teams go into bad debts like the McCourts seem to have done.

On the other hand, I would not be at all shocked if multiple teams in Major League Baseball operated in just the same way, complete with family jobs, slush funds, silent partners and all manner of vehicles which, either intentionally or by happy accident, work to conceal the amount of cash a baseball team really earns and where its money is spent.  Baseball teams are almost all purely private companies, most of which are family owned. Despite their antitrust exemption and all of the tax money they consume in the form of public stadiums and the like, we know just as much about their operations as we do the corner gyro shop, and that’s just the way they like it.

The only difference here: we have a divorce case in which these machinations are laid bare.  And however distressing it is for Dodgers fans to see where all the money that should be going towards starting pitching is going, these revelations are educational and useful.

Angels ink Javy Guerra to minor league deal

Screenshot 2016-02-10 at 7.43.02 PM
Rich Pilling/Getty Images North America
Leave a comment

Mike DiGiovanna of the Los Angeles Times reports that the Angels have agreed to terms on a minor league contract with right-handed reliever Javy Guerra. The deal includes an invitation to major league spring training.

Guerra was suspended 50 games by Major League Baseball last July after testing positive for a drug of abuse. That suspension is now over, though Guerra is probably ticketed for the Angels’ Triple-A affiliate to begin the 2016 season.

The 30-year-old made just three major league appearances in 2015 for the White Sox before getting outrighted off Chicago’s 40-man roster. He does own a 2.87 ERA in 150 1/3 career innings, but it has come with bouts of inconsistency and unreliability.

Maybe he can get everything going in the right direction with Anaheim.

Braves sign reliever Carlos Torres

Screenshot 2016-02-10 at 7.00.22 PM
Rich Schultz/Getty Images North America
Leave a comment

As first reported by Bill Shanks of Fox Sports 1670, the Braves have signed right-handed reliever Carlos Torres to a minor league contract with an invitation to spring training.

Torres was waived by the Mets in January, somewhat surprisingly, and elected to become a free agent. The 33-year-old ultimately chose Atlanta, where he should have a good shot at an Opening Day roster out of spring training with the rapidly-rebuilding Braves.

Torres posted an ugly 4.68 ERA in 57 2/3 innings last season for the Mets, but he registered a gorgeous 3.06 ERA and 96 strikeouts across 97 innings in 2014.

If he gets off to a good start in 2016, he could become valuable trade bait.

Blue Jays will have a closer competition this spring

Screenshot 2016-02-10 at 6.22.24 PM
Tom Szczerbowski/Getty Images North America
3 Comments

Roberto Osuna became the youngest pitcher to ever play for the Blue Jays last season at age 20 and he rose to the challenge with a 2.58 ERA, 0.92 WHIP, and 75/16 K/BB ratio in 69 2/3 frames. Osuna eventually took over as Toronto’s closer, earning 20 regular-season saves and one in the American League Division Series — a five-out effort in Game 5 to close out the visiting Rangers.

But the Jays upgraded the back end of their bullpen this winter, acquiring Drew Storen from the Nationals in early January for speedy outfielder Ben Revere. Jesse Chavez was also brought to Toronto in a trade with the A’s.

Storen has more experience at closer than Osuna, and Storen struggled when the Nationals tried to put him in a setup role. Storen, in his final year of salary arbitration, also gets paid much more. He’s probably going to enter spring training as the favorite for the Jays’ ninth-inning gig, but there will be a competition …

Blue Jays general manager Ross Atkins told Ben Nicholson-Smith of Sportsnet.ca on Wednesday that he doesn’t expect the team to choose between Osuna or Storen until midway through spring training, if not later.

There’s been talk of making Osuna a starter, so add that wrinkle.

Storen, 28, boasts 95 career major league saves.

Orioles plotting late-offseason push? Gallardo, Fowler, Alvarez, Bruce in consideration

orioles logo
6 Comments

Baltimore’s front office appears to be lining up a run of potential roster additions leading into the beginning of spring training.

We’ve already passed along the reports suggesting they are close to a three-year deal with free agent starter Yovani Gallardo, but now FOX Sports’ Ken Rosenthal adds that free agent outfielder Dexter Fowler could be next on the Orioles’ target list. It they get those two deals done, the O’s could then chase free agent slugger Pedro Alvarez.

Rosenthal says the Orioles are even eyeing Jay Bruce of the Reds, though the FOX reporter hears the O’s might not have the prospects to pull off that kind of trade.

The focus for the Orioles out of the gate this winter was re-signing Matt Wieters and Chris Davis. Wieters accepted his one-year, $15.8 million qualifying offer in November and Davis was locked up to a seven-year, $161 million contract in mid-January.

Now the O’s are spending a little leftover cash on late-offseason additions to improve their position in what should be a tight 2016 American League East race.