Frank McCourt, who knows from crappy loans, received one for $150 million in order to meet payroll on the 30th and to keep the team running while the bankruptcy proceeds through its paces, reports the Wall Street Journal. Some basic questions you may have, followed by the best answer I have (again, bankruptcy types, feel free to correct me if I’m wrong):
First question: How in the hell did Frank McCourt get a loan? I thought he was tapped out!
Answer: It’s a special bankruptcy loan for debtors in possession. These things happen frequently. The moment the bankruptcy goes down, the lender of such a beast goes to the front of the line for payment. It would not have been available before a filing, as a lender would then be behind all of the other creditors. The idea: better to favor a post-bankruptcy lender than to have no one get paid.
Second question: What makes this a crappy loan?
Answer: The interest rate for starters, which at 10% is higher than your usual debtor-in-possession financing. Even Borders bookstore, which is basically in a dying industry, got a better deal. Also the fact that McCourt had to pay the lender a $4.5 million fee on top of it all. Also because McCourt had to put a lien on Dodger Stadium and offer personal guarantees on the load too.
Third question: Why such bad terms?
Answer: Apparently because no one else would lend him the money, preferential treatment aside. According to the Wall Street Journal, a J.P. Morgan-affiliated hedge fund — Highbridge Principal Strategies — was the only entity willing to do business with Mr. McCourt. Maybe next time he should call Moneytree, where lenders compete for your business!
What? You mean he called Moneytree already? And they pretended they weren’t home? Awwwkwaaard.
The news has gone from bad to worse for Dodgers’ left-hander Julio Urias, who is scheduled for anterior capsule surgery on his left shoulder next Tuesday and expected to be sidelined through the middle of the 2018 season. His MRI came back negative on Wednesday, giving the Dodgers some hope that the 20-year-old’s bout of shoulder inflammation wasn’t masking any structural damage, but the pain lingered several days later and prompted further concern from the club. The procedure will be performed by Dr. Neal ElAttrache.
Urias was optioned to Triple-A Oklahoma City in late May and placed on the disabled list with left shoulder discomfort several weeks into his assignment. At the major league level, he owned a 5.40 ERA, 5.4 BB/9 and 4.2 SO/9 through 23 1/3 innings, going 0-2 in five starts with Los Angeles. He made a brief rebound in Triple-A, posting three wins and striking out 17 of 67 batters in 17 1/3 innings before landing on the DL.
It’s a tough blow for the southpaw, who had yet to hit his stride in the majors before getting sidelined with shoulder issues. The Dodgers were especially mindful of this outcome for Urias, and had taken preventative measures to protect his arm by establishing a strict innings limit last season. According to club president Andrew Friedman, there’s a small silver lining here: while Urias’ injury will keep him out of work for at least 12 months, he doesn’t appear to have sustained any damage to his labrum or rotator cuff, and could be facing a much more streamlined recovery process as a result. Whether he’ll be able to rebound once he takes the mound again remains to be seen.
Tigers’ right-handed reliever Francisco Rodriguez was released on Friday, per a team announcement. The club recalled fellow right-hander Bruce Rondon from Triple-A Toledo in a corresponding move.
The former closer got the boot after losing his closing role in early May, giving left-hander Justin Wilson a chance to impress at the back end of the bullpen. It’s been a rough year for Rodriguez, who manufactured six blown saves and a 7.82 ERA, 3.9 BB/9 and 8.2 SO/9 over 25 1/3 innings for the Tigers. The final straw, it seemed, came with Robinson Cano‘s grand slam in the seventh inning of the Tigers’ 6-9 loss to the Mariners on Thursday.
While the demotion to a clean-up role and an apparent lack of communication caused Rodriguez considerable frustration, he’s two years removed from his last dominant performance as a major league closer and has shown few signs of returning to form. His recent slump doesn’t diminish the impressive totals he’s racked up over his 16-year career — 437 saves and six All-Star nominations among them — but if he can’t break out of it soon, he may not receive the kind of high leverage role he’s seeking with another big league team, either.