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 PM: If 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?
Former Tigers infielder Casey McGehee has reportedly signed a one-year deal with the Yomiuri Giants of Nippon Professional Baseball, according to FOX Sports’ Ken Rosenthal.
It’s the fourth move the corner infielder has made in the last two seasons after seeing short-term stints with the Marlins, Giants and Tigers. He signed a minor league deal with the Tigers prior to the 2016 season, providing the club with some infield depth behind 24-year-old Nick Castellanos. When Castellanos hit the disabled list in August with a broken hand, McGehee was recalled from Triple-A Toledo for a 30-game stint and slashed .228/.260/.239 with one extra-base hit in 96 PA. His career batting line (.258/.317/.384 over eight seasons) isn’t too shabby, but his age and a long history of knee injuries puts a damper on his potential.
McGehee last appeared in the NPB circuit in 2013, when he signed a one-year, $1.5 million deal with the Tohoku Rakuten Golden Eagles. He spent the bulk of his season at the hot corner, batting an impressive .292/.396/.515 with 28 homers in 590 PA and appearing in the Eagles’ first and only championship run to date.
The deal comes with a club option for 2018, Rosenthal reports, though no figure has been specified.
Free agent left-hander Rich Hill is rumored to be entertaining a three-year, $40+ million offer from the Dodgers, reports Peter Gammons. The Boston Globe’s Nick Cafardo corroborated the report, adding that Hill could receive somewhere between $46 and $48 million from his former team.
Hill, 36, pitched to a 2.12 ERA and 3.91 FIP in back-to-back stints with the Athletics and Dodgers in 2016. While a chronic case of blisters on his pitching hand limited the frequency of his starts, he still figures to be one of the most productive and noteworthy starting pitchers on the market this winter.
The Orioles, Yankees, Red Sox, Rangers and Astros have all been mentioned as potential suitors for the left-hander’s services, though Orioles’ GM Dan Duquette said the club has yet to make a play for Hill and ESPN’s Jim Bowden pointed out that the Red Sox are less involved in trade talks than other interested parties.