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

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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?

Dodgers acquire Manny Machado from Orioles for five minor leaguers

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The Orioles and Dodgers are expected to finally complete involving SS/3B Manny Machado, ESPN’s Jerry Crasnick reports. The Orioles will receive five prospects from the Dodgers: Yusniel Diaz, Dean Kremer, Zach Pop, Rylan Bannon, and Breyvic Valera.

Machado, 26, is in the final year of his contract, so this is currently a rental for the first-place Dodgers. Machado ended the first half batting .315/.387/.575 with 24 home runs, 65 RBI, 48 runs scored, and eight stolen bases in 413 plate appearances. In Los Angeles, he will handle shortstop, allowing Chris Taylor to move over to second base.

MLB Pipeline rated Diaz as the Dodgers’ No. 4 prospect and No. 84 across baseball. Kremer was No. 27 in the Dodgers’ system and Bannon was No. 28.

Diaz, 21, is considered the centerpiece of the trade. The outfielder hit .314/.428/.477 with 20 extra-base hits, 30 RBI, and 36 runs scored in 264 plate appearances at Double-A Tulsa this season.

Kremer, 22, was selected by the Dodgers in the 14th round of the 2016 draft. He spent most of his season with High-A Rancho Cucamonga before earning a promotion to Tulsa earlier this month. Overall, in 17 starts, the right-hander posted a 3.03 ERA with a 125/29 K/BB ratio in 86 innings.

Pop, 21, was selected by the Dodgers in the seventh round of the 2017 draft. He has spent his season between Rancho Cucamonga and Single-A Great Lakes. Overall, he compiled a 1.04 ERA with 47 strikeouts and 13 walks in 43 1/3 innings of relief.

Bannon, 22, was selected by the Dodgers in the eighth round of the 2017 draft. With Rancho Cucamonga this season, the infielder batted .296/.402/.559 with 20 home runs and 61 RBI in 403 PA.

Valera, 26, has appeared in 20 games at the major league level for the Dodgers this season, batting a meager .172 with a .445 OPS in 34 PA. Valera has versatility, having played second base, third base, and corner outfield this year while also having experience in center field, shortstop, and first base.