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.
Yadier Molina underwent surgery to repair a ligament tear in his right thumb shortly after the Cardinals were eliminated from the NLDS by the Cubs, and then he needed a followup procedure two months later.
It’s been an offseason of rest and rehab for the seven-time All-Star and eight-time Gold Glover, though he’s about ready to ramp up the intensity of workouts with the beginning of spring training approaching …
Brayan Pena was signed to a two-year, $5 million free agent contract this winter to provide more reliable depth behind the plate. He’ll be the Cardinals’ starter at catcher come Opening Day if Yadi isn’t quite ready.
Molina started a whopping 131 games behind the plate in 2015.
You’ve heard the stories by now. Jose Fernandez does not get along with Marlins management and is doubtful to sign a long-term contract with the team.
There’s still time for those relationships to be repaired — Fernandez can’t become a free agent until after the 2018 season — but we also have a monetary issue at play.
Barry Jackson of the Miami Herald writes Sunday that the Marlins are “under the impression” Fernandez and his representatives want $30 million per year on a long-term deal, a figure the Marlins “have no plans to meet.”
If the Marlins won’t pay, Fernandez and his reps will seek that number when the ace right-hander reaches free agency. That could be the same offseason Bryce Harper tries for $500 million.
A friend of Fernandez told Jackson that the 23-year-old native of Cuba was upset about some of the trades the Marlins made last summer and the removal of pitching coach Chuck Hernandez. You probably heard talk of Miami shopping Fernandez this winter, but the asking price was predictably sky-high.
Fernandez has been limited to 19 starts over the last two years because of Tommy John surgery and a biceps injury, but he boasts a stellar 2.40 ERA, 1.01 WHIP, and 10.5 K/9 in 289 career major league frames. He will make $2.8 million in 2016 and carries two more years of arbitration eligibility.
If he can put together a run of 30-start, 200-inning seasons, Fernandez will get that $30 million per year and probably much more.
Paul Hoynes at the Cleveland Plain Dealer has an in-depth look at how the Indians will manage their outfield during the early part of the 2016 season, in the absence of star Michael Brantley.
Brantley underwent labrum surgery on his right shoulder this past November and has not picked up a bat all winter. “In the off-season people know I love to hit,” Brantley acknowledged to Hoynes late last week. ”I hit a lot. It’s just been a change in my timetable.”
Hoynes says the projected date for Brantley’s 2016 debut is “hazy,” guessing that it might happen around late April or early May if everything continues to go smoothly. Shoulders can be tricky, for hitters and pitchers.
Rajai Davis, Abraham Almonte, and Lonnie Chisenhall figure to make up Cleveland’s primary starting outfield while Brantley is finishing his rehabilitation. Collin Cowgill and Joey Butler could also be in the mix. It’s a lacking group, tasked with replacing one of the most productive players in baseball.
Brantley, 28, has slashed .319/.382/.494 over the last two seasons, tallying 35 home runs, 90 doubles, 181 RBI, and 38 stolen bases in 293 games.
Could the talented Tribe be in for another slow start?
Shouldn’t this club be spending more money?
Zach LaVine of the Minnesota Timberwolves and Aaron Gordon of the Orlando Magic put on a tremendous show in Saturday night’s NBA Slam Dunk Contest up in Toronto, Canada. The stars were out to see it at the Air Canada Centre, and Blue Jays slugger Jose Bautista had one of the very best views in the house. Check out this video he posted to Instagram of LaVine’s final dunk, a between-the-legs jam from just inside the free throw line …
That is Toronto’s very own Drake going wild in the pink jacket. Gordon probably had the best individual dunk of the night, though, if we’re being really real …
Back to your regularly scheduled baseball programming. Pitchers and catchers report Friday.