Combination of file photos of MLB commissioner Bud Selig and Los Angeles Dodgers owner Frank McCourt

The Dodgers and MLB are in court today

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As I type this, a big hearing is going down in the Dodgers’ bankruptcy case. It’s the one in which — or after which — it will be decided who gets to bankroll the Dodgers’ operations during the pendency of the case.  Frank McCourt and the $150 million loan he has obtained or Major League Baseball and the $150 million — and possibly more in the future — it has offered to extend to the Dodgers.

As we’ve noted several times, on purely financial terms MLB’s financing is better. Lower interest and no up-front fees like that McCourt would have to pay for his proposed financing. And that matters, because the more money lost to such costs, the less available to creditors of the bankrupt Dodgers (and the interest of the creditors is the primary interest being served in bankruptcy).

Over the past few weeks McCourt has been trying to compensate for these differences by arguing that MLB’s financing is part of a plot by Bud Selig — who he called “the devil” in a filing earlier this week — to shove McCourt aside as the team’s owner. Meanwhile, the creditors and the trustee representing them have asked the judge not to approve McCourt’s financing. It’s been a pretty ugly little battle. (UPDATE: right after I wrote this, the creditors withdrew their objections, noting that McCourt’s financier has lowered the interest rate a point).

But it likely won’t be resolved by a simple decision from the judge, approving one loan and rejecting the other.  As Bill Shaikin notes in a very useful primer of today’s hearing, the judge could ask for modifications to either side or go in a totally different direction if he wants.

What is clear, however, is that if one side’s financing is clearly favored, that side will have a much greater hand in steering the future course of the Los Angeles Dodgers.

Report: Indians acquire catcher Jonathan Lucroy from the Brewers

MILWAUKEE, WI - MAY 31:  Jonathan Lucroy #20 of the Milwaukee Brewers rounds the bases after hitting a home run in the second inning against the St. Louis Cardinals at Miller Park on May 31, 2016 in Milwaukee, Wisconsin. (Photo by Dylan Buell/Getty Images)
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The Indians have acquired catcher Jonathan Lucroy from the Brewers, Ken Rosenthal of FOX Sports reports. Lucroy still has to waive his limited no-trade clause, and the two teams are reviewing medicals before the deal is finalized.

The Brewers are reportedly receiving four players in the deal, three of which are currently known: catcher Francisco Mejia, shortstop Yu-Cheng Chang, and outfielder Greg Allen. The fourth as yet unknown player is a “lesser prospect,” per Rosenthal.

Lucroy, 30, leaves the Brewers having hit .300/.360/.484 with 13 home runs and 50 RBI in 375 plate appearances. He earned his second All-Star nomination, representing the National League at Petco Park nearly three weeks ago. Lucroy represents a huge upgrade behind the dish for the Indians, who have gotten a major league-worst .501 OPS from their catchers this season. Lucroy is owed the remainder of his $4 million salary for this season and the Indians will have a $5.25 million club option for 2017 with a $250,000 buyout.

Mejia, 20, was regarded as the Indians’ sixth-best prospect by MLB Pipeline. He spent most of the season with Single-A Lake County, batting .347/.384/.531 in 259 plate appearances. That led to a promotion to High-A Lynchburg near the end of June. Mejia, a switch-hitter, is currently on an impressive 42-game hitting streak in the minors.

Chang, 20, hit .273/.347/.493 with 12 home runs and 69 RBI in 419 PA with Lynchburg. He has experience playing third base as well as shortstop, but because he doesn’t have a strong arm, he projects better at shortstop going forward. MLB Pipeline rated him as the Indians’ 12th-best prospect.

Allen, 23, was considered the Indians’ 22nd-best prospect by MLB Pipeline. A switch-hitter, he batted .298/.424/.402 with 24 extra-base hits, 31 RBI, 93 runs scored, and 38 stolen bases in 432 PA for Lynchburg before being promoted to Double-A Akron last week.

Report: Padres trade Matt Kemp to the Braves for Hector Olivera

SAN DIEGO, CA - JUNE 06:  Matt Kemp #27 of the San Diego Padres talks in the dugout prior to the start of the game against the Atlanta Braves at PETCO Park on June 6, 2016 in San Diego, California.  (Photo by Kent Horner/Getty Images)
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Update (7:01 PM EDT): David O’Brien of the Atlanta Journal-Constitution reports the deal has been completed.

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ESPN’s Keith Law reported on Saturday evening that a bad contract swap involving the Braves’ Hector Olivera and the Padres’ Matt Kemp was “getting close.” Olivera has been pulled off the field, per Bob Nightengale of USA TODAY. Joel Sherman of the New York Post reports that only a last-second medical would kill the deal at this point, and that the Padres will be sending money to the Braves.

Kemp, 31, will have $64.5 million remaining on his contract through 2019 after this season, but the Dodgers will pay $3.5 million annually over those remaining three years, so the $64.5 million is really $54 million. The veteran has compiled a .262/.285/.489 triple-slash line with 23 home runs and 69 RBI in 431 plate appearances for the Padres this season.

Olivera, 31, will have $28.5 million remaining on his contract through 2020 after this season. The outfielder was handed an 82-game suspension, beginning on May 26, for his involvement in a domestic dispute on April 13. The suspension is up on August 2. He has a .501 OPS in 21 major league at-bats this season and a .278 OPS in 37 PA at Triple-A.

Dennis Lin of the San Diego Union-Tribune reports that the Padres will consider designating Olivera for assignment. The trade is all about the salary dump for the Padres, as they’d rather give outfield playing time to prospects Hunter Renfroe and Manuel Margot.