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?

Sandy Koufax to be honored with statue at Dodger Stadium

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Bill Shaikin of the Los Angeles Times reports that Hall of Fame pitcher Sandy Koufax will be honored with a statue at Dodger Stadium, expected to be unveiled in 2020. Dodger Stadium will be undergoing major renovations, expected to cost around $100 million, after the season. Koufax’s statue will go in a new entertainment plaza beyond center field. The current statue of Jackie Robinson will be moved into the same area.

Koufax, 83, had a relatively brief career, pitching parts of 12 seasons in the majors, but they were incredible. He was a seven-time All-Star who won the National League Cy Young Award three times (1963, ’65-66) and the NL Most Valuable Player Award once (’63). He contributed greatly to the ’63 and ’65 championship teams and authored four no-hitters, including a perfect game in ’65.

Koufax was also influential in other ways. As Shaikin notes, Koufax refused to pitch Game 1 of the 1965 World Series to observe Yom Kippur. It was an act that would attract national attention and turn Koufax into an American Jewish icon.

Ahead of the 1966 season, Koufax and Don Drysdale banded together to negotiate against the Dodgers, who were trying to pit the pitchers against each other. They sat out spring training, deciding to use their newfound free time to sign  on to the movie Warning Shot. Several weeks later, the Dodgers relented, agreeing to pay Koufax $125,000 and Drysdale $110,000, which was then a lot of money for a baseball player. It would be just a few years later that Curt Flood would challenge the reserve clause. Koufax, Drysdale, and Flood helped the MLB Players Association, founded in 1966, gain traction under the leadership of Marvin Miller.