MLB: Frank McCourt would personally benefit from his proposed financing

12 Comments

At the moment, the big issue in front of the court handling the Dodgers bankruptcy is how the Dodgers’ operations will be financed for the next several months while the legal process is played out.  Frank McCourt has obtained a private loan and wants to use it to run the team.  Major League Baseball counters, offering its own financing to run the team.  He who controls the spice controls the universe, so whoever wins this financing battle is going to have a way bigger hand in the future of the Dodgers than whoever doesn’t. It’s a big deal.

To that end, Major League Baseball filed a brief yesterday explaining why Frank McCourt’s proposed financing is not in the best interest of the Dodgers. Their biggest beef: Frank McCourt stands to personally benefit from the loan he obtained:

“Clearly, Mr. McCourt has not allowed these bankruptcy cases to change the practice of using the [Dodgers] as his personal piggy bank”

The brief is redacted for some reason, so the exact amount McCourt is allegedly skimming off the top of his loan is not explicitly stated. The brief makes further allusions to just how much McCourt has looted the Dodgers over the years. These numbers are redacted too, but the L.A. Times spoke with a source who says that the number is closer to $200 million than the $100 million which has been widely reported over the past couple of years.

As we’ve noted before, on its basic terms, the loan McCourt wants to use is pretty poor. High interest and a big up-front fee that Major League Baseball’s proposed financing doesn’t call for.  Frank’s only apparent objection to baseball’s financing is that, well, it’s not good for Frank. Pity, that.

There will be a hearing on all of this next Wednesday and, if form holds, a pretty quick ruling.

Mariners, Indians and Rays make a three-way swap

Getty Images
8 Comments

The Indians, Mariners, and Rays are working toward finalizing a three-team trade. The full details have not been revealed yet, and there are conflicting reports as to who is going where, but we know that Carlos Santana and Edwin Encarnacion are involved.

Initial reports have the Mariners getting Edwin Encarnacion from the Indians in exchange for Carlos Santana, with Cleveland also receiving first baseman Jake Bauers from the Rays. Outfielder/third baseman Yandy Diaz will reportedly head to Tampa Bay along with a player to be named later. There has been a conflict in the past few minutes, however as to where Encarnacion is actually going: Seattle or Tampa Bay. Mark Feinsand of MLB.com says it’s Seattle, Bob Nightengale says it’s Tampa Bay. We’ll know soon enough, I suppose.

Santana played for the Phillies last year and was traded to Seattle just a couple of weeks ago. He’ll never have a chance to wear a Mariners uniform and, instead, will go back to Cleveland, where he played his entire career until 2018. Encarnacion has spent the last two years in Cleveland. Santana is owed $35 million over the next two seasons and has a 2021 buyout. Encarnacion is owed $24 million in 2019 if you include the buyout on his 2020 club option.  If Encarnacion is going to Seattle, you have to figure that the Mariners will flip him in mid-season if possible.