Big surprise: Frank McCourt to keep the Dodgers running with a crappy loan


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.

Jeff Samardzija to undergo MRI on right shoulder

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Update (12:58 AM ET): Per Henry Schulman of the San Francisco Chronicle, Samardzija has been diagnosed with a strained pectoral muscle. He’ll be shut down for a week. That’s good news for the Giants, considering the alternatives.


Giants starter Jeff Samardzija will undergo an MRI on his ailing right shoulder, according to NBC Sports Bay Area. The right-hander struggled in a minor league game on Wednesday, surrendering a pair of home runs and hitting a batter. Overall this spring, Samardzija has given up 15 runs (13 earned) on 17 hits (six homers) and seven walks with seven strikeouts in 11 innings.

This may mean Samardzija won’t be ready for the start of the regular season. Derek Holland would likely replace Samardzija in the rotation. Holland had been competing for the No. 5 spot in the Giants’ rotation.

Samardzija led the National League in losses last season with 15, also posting a 4.42 ERA with a 205/32 K/BB ratio in a league-high 207 2/3 innings. Since becoming a starter, Samardzija has been able to avoid injury, making 32 or 33 starts in each of the last five seasons.