Report: the Dodgers got a sweetheart deal limiting their revenue sharing liability

12 Comments

UPDATE:  It seems this was not really news, despite Bloomberg’s reporting it as such.  Bill Shaikin of the Los Angeles Times reported this back in May.  We missed it then.  Apologies to the Times.

5:40 PMIf this report from John Helyar of Bloomberg is true, whoa, MLB is going to have A LOT of explaining to do to, well, every team that is not the Los Angeles Dodgers:

The Los Angeles Dodgers have shot out of bankruptcy and into the ranks of baseball’s biggest spenders, fueled partly by a secret agreement between former owner Frank McCourt and Major League Baseball that may limit the revenue the team is obliged to share with less prosperous clubs.

A settlement ending their 2011 battle in U.S. Bankruptcy Court gives the Dodgers’ new owners a chance to cap income subject to revenue-sharing from a proposed regional sports network at about $84 million a year, according to five people familiar with the confidential “special terms.”

The upshot: the Dodgers — based on assumptions about what their new TV deal will bring them — will be able to hold on to some $141 million a year that they would otherwise have to share with other clubs in the league. That’s because their new deal will bring in far, far more than $84 million a year. Indeed, its estimated that it’ll bring in $175 million to $225 million a year over the 20- year contract.

This would help in part to explain the massive sales price of the team, as the biggest financial hurdle a large market/revenue team faces is its revenue sharing obligations.

Major League Baseball Executive Vice President Rob Manfred pushes back against this, saying that the revenue sharing figures will be based on the actual TV revenue the Dodgers receive.  Which … seems like a direct contradiction of the whole story.  So, I’m not sure what’s going on here.  Bloomberg is obviously reporting, based on several sources, that there is a deal to cap revenue-sharing eligible TV money. Manfred’s words suggests that’s not the case.

Any help here, anyone?

Video: Gift Ngoepe singles in his first major league at-bat

Justin K. Aller/Getty Images
3 Comments

Pirates infielder Gift Ngoepe, just called up from Triple-A Indianapolis, singled in his first major league at-bat on Wednesday evening against Cubs starter Jon Lester. It was a well-struck ground ball up the middle in the bottom of the fourth inning. Unfortunately for him, the Pirates could not bring him around to score.

Ngoepe, who was pinch-hitting, stayed in the game to play second base.

Shelby Miller getting third opinion on elbow from Dr. James Andrews

Denis Poroy/Getty Images
3 Comments

Diamondbacks starter Shelby Miller was placed on the 10-day disabled list on Monday due to inflammation in his right elbow. He had a second opinion from Dr. Neal ElAttrache on Tuesday and is currently awaiting a third opinion from Dr. James Andrews, Craig Grialou of Arizona Sports reports. That he’s getting a third opinion seems to imply that Miller’s elbow issue is rather serious.

Miller, 26, hasn’t been able to catch a break since joining the Diamondbacks. Last year’s nightmarish season included a finger injury stemming from mechanical woes and a brief demotion to the minor leagues. In 20 starts in the majors last year, Miller posted an ugly 6.15 ERA. This year, his ERA is a mediocre 4.09 over four starts.

The Diamondbacks called up Zack Godley to take Miller’s spot in the rotation. There was some speculation that it would be Archie Bradley instead, but he’s been working out of the bullpen.