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.
With the White Sox losing Jeff Samardzija to free agency, Erik Johnson will likely get a shot to contribute out of the rotation to open up the 2016 season, GM Rick Hahn said in a conference call on Wednesday, per a report from MLB.com’s Scott Merkin.
“As we sit here today, I think it will be an opportunity for Erik Johnson to convert on sort of the return to form he showed back in 2015 when he was International League pitcher of the year for [Triple-A] Charlotte,” Hahn said. “Obviously, he got some starts in September and continued to show the progress in Chicago he had shown in the Minor Leagues over the course of the last season.
“So if Opening Day were today, then I think Johnson is penciled in to that spot in the rotation right now. In all probability, once we get closer to spring, there will be some competition for him to earn that spot. But if we were strictly looking at today, then I would think Johnson has the inside track on filling Samardzija’s innings.”
Johnson was called up from Triple-A Charlotte in September and made six starts, allowing 14 runs (13 earned) on 32 hits and 17 walks with 30 strikeouts in 35 innings. That followed up an impressive five months in the minors where he compiled a 2.37 ERA and a 136/41 K/BB ratio across 132 2/3 innings.
Baseball America, Baseball Prospectus, and MLB.com each included Johnson on their top-100 prospect lists, ranking him 63rd, 67th, and 70th, respectively. The right-hander was selected by the White Sox in the second round of the 2011 draft.
It was reported on Friday afternoon that Dodgers outfielder Yasiel Puig was involved in a brawl at a Miami nightclub. Details were scant at the time, but he reportedly left with a bruise on his face.
Dylan Hernandez of the Los Angeles Times reports that Major League Baseball plans to investigate Puig under the league’s new domestic violence policy for his role in the brawl. Citing a report from TMZ, Hernandez notes that Puig shoved his sister, “brutally sucker-punched” the manager of the bar, and instigated the brawl.
The Dodgers and Puig’s agent have thus far refused to comment on the situation.
Rockies shortstop Jose Reyes was the first player to be investigated under the league’s new domestic violence policy earlier this month, as he allegedly assaulted his wife. Reyes has pleaded not guilty after he was charged with domestic abuse in Hawaii.
As our own Craig Calcaterra pointed out, commissioner Rob Manfred does not need to wait for Puig to plead guilty or to be found guilty to levy a punishment.
Patrick Newman is reporting that the Chunichi Dragons of Japan’s Nippon Professional Baseball and outfielder Dayan Viciedo are close to an agreement on a contract. Newman notes that the Dragons are close to signing pitcher Jordan Norberto as well.
Viciedo, 26, has struggled since making his major league debut in 2010 with the White Sox, batting an aggregate .254/.298/.424 with 66 home runs and 211 RBI in 1,798 plate appearances. He spent the 2015 season with Triple-A Charlotte (White Sox) and Nashville (Athletics), hitting a composite .287/.348/.450. While Viciedo can hit the occasional home run, he hasn’t shown the ability to do much else at the big league level. Given his age, he could prove himself in Japan and parlay that into a renewed shot in the majors in the future.
The White Sox signed Viciedo out of Cuba in December 2008, agreeing to a four-year, $10 million deal. The club re-signed him to one-year deals in 2013 and ’14 for $2.8 million each and $4.4 million ahead of the 2015 season.
Update (8:45 PM EST): Per Sportsnet’s Shi Davidi, Happ will get $10 million in 2016 and $13 million each in 2017 and ’18.
MLB.com’s Gregor Chisholm reports that the Blue Jays have signed lefty J.A. Happ to a three-year deal worth $36 million.
Happ, 33, had a rebirth as a member of the Pirates last season after starting the season with 20 subpar starts with the Mariners. He made 11 starts for the Buccos, boasting a 1.85 ERA with a 69/13 K/BB ratio over 63 1/3 innings.
Travis Sawchik of the Pittsburgh Tribune-Review reported this past August that Happ’s newfound success had to do with a delivery tweak suggested by Pirates pitching coach Ray Searage. The Blue Jays are certainly hoping that adjustment is the full explanation for his success.
The Jays’ signing of Happ most likely signifies they won’t be pursuing free agent lefty David Price.
This will be Happ’s second stint with the Blue Jays. The Astros dealt him to Toronto in a July 2012 trade. He posted a 4.39 ERA with a 256/113 K/BB ratio in 291 innings with the Jays, then went to the Mariners in a trade this past December that brought outfielder Michael Saunders to the Jays.