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 Rays acquired right-handed reliever Sergio Romo from the Dodgers, the teams announced Saturday night. Tampa Bay manager Kevin Cash hinted that the team was in on Romo during the offseason, but couldn’t quite make a deal happen at the time. The righty reliever was designated for assignment by the Dodgers on Thursday and will net the club cash considerations or a player to be named later.
Romo, 34, struggled to find his footing in his first season with the Dodgers. He left a closing role in San Francisco to play set-up man to established closer Kenley Jansen, and saw mixed results on the mound with a 6.12 ERA, 4.3 BB/9 and 11.2 SO/9 through his first 25 innings of 2017. It’s a far cry from the sub-3.00 ERA he maintained in 2015 and 2016, but the Rays don’t seem to have ruled out a second-half surge just yet.
The veteran right-hander is expected to step into a bullpen that already boasts a solid core of right-handed relievers, including Alex Colome, Brad Boxberger, Erasmo Ramirez, Chase Whitley and Tommy Hunter. According to FOX Sports’ Ken Rosenthal, the Rays were intrigued by Romo’s extensive postseason experience, affordability and hefty strikeout rate, but will likely continue to hunt for additional bullpen depth in the weeks to come.
Astros’ third baseman Colin Moran was carted off the field on Saturday night after a foul ball caught him in the left eye. He was forced to leave in the sixth inning when a pitch from Orioles’ right-handed reliever Darren O'Day ricocheted off the handle of his bat and struck him in the face, causing considerable bleeding and bruising around his eye. The full extent of his injury has yet to be reported by the team.
Prior to the injury, Moran was 1-for-2 with a base hit in the third inning. He was relieved by pinch-hitter/third baseman Marwin Gonzalez, who polished off the end of the at-bat by catapulting a three-run homer onto Eutaw Street.
Evan Gattis and Carlos Beltran combined for another two runs in the ninth inning, bringing the Astros to a four-run lead as they look toward their 65th win of the season. They currently lead the Orioles 7-4 in the bottom of the ninth.