Los Angeles Dodgers MLB takeover
The Major League Baseball takeover of the Los Angeles Dodgers occurred on April 20, 2011.[1] Baseball Commissioner Bud Selig announced that the takeover was due to concerns over the team's finances, and a loss of confidence in the ability of owner Frank McCourt to run the team.[2] Selig has announced his intention to appoint an overseer to supervise the day-to-day financial management of the Dodgers.
Contents |
[edit] Background
Frank McCourt and his wife Jamie purchased the Dodgers from the Fox Entertainment Group in 2004. In order to arrange the purchase, he needed a $145 million loan from Fox, for which he used his Boston parking lots as collateral. Fox eventually foreclosed on the parking lot property and sold it. [3]
Under McCourt's ownership of the Dodgers the team made the playoffs four times, advancing to the National League Championship Series two times.
On October 14, 2009 it was announced the McCourts would be separating after nearly 30 years of marriage.[4] While speculation was raised on the impact upon the McCourt family Dodger ownership, a spokesperson for Jamie McCourt said the following day that "the focus of the Dodgers is on the playoffs and the World Series". Jamie was fired from her position as Dodgers CEO on Thursday, October 22, 2009, the day after the Dodgers were eliminated from the playoffs, thus ending the reign of the self proclaimed "First Female CEO of a Baseball Team."[4] She officially filed for divorce shortly thereafter. McCourt then accused her of having an affair with her bodyguard and changed the locks on her office. Frank claimed at the time that the divorce would have "no bearing on the team whatsoever". "[5]
On December 7, 2010 the judge in the divorce case invalidated the post-nuptial marital property agreement ("MPA") that Frank McCourt had claimed provided him with sole ownership of the Dodgers. In the wake of this decision Frank McCourt's lawyers said that Frank would use other legal avenues to establish his sole ownership of the Dodgers, while Jamie McCourt's lawyers said that Jamie would be confirmed as the co-owner of the team as community property of their marriage.[6]
On March 31, 2011, after the Opening Day game against the San Francisco Giants, a Giants fan was attacked by two men wearing Dodgers attire in the Dodger Stadium parking lot.[7] The fan suffered serious injuries and was diagnosed with brain damage. McCourt was criticized for his response to the incident.[8][9][10] The attack put a damper on attendance at Dodger games, and led to the Dodgers incurring increased expenses in security.
On April 5, 2011, McCourt presented Selig's office with a contract giving Fox broadcasting rights to the team for the next 20 years. The deal is said to be valued at between US$2.5 to US$3 billion. The commissioner's office has yet to approve or reject the deal.[11]
Fox also provided McCourt with a personal loan of $30 million to cover the Dodgers payroll. To secure the loan, McCourt promised Fox he would pay them back with money from a settlement or judgment against the lawfirm that drafted the invalidated marital agreement. The lawfirm responded to the report by filing a lawsuit against McCourt, seeking a judicial declaration that the firm is not responsible for him losing control of the Dodgers[12]
Just prior to the MLB taking over the Dodgers, the website TMZ.com reported that the Internal Revenue Service was investigating Frank & Jamie McCourt in response to allegations that they had been taking money out of the Dodgers for years without paying taxes.[13]
[edit] Bud Selig's statement
In a statement to the press on April 20, 2011,[14] Commissioner Bud Selig stated the following:
Pursuant to my authority as Commissioner, I informed Los Angeles Dodgers owner Frank McCourt today that I will appoint a representative to oversee all aspects of the business and the day-to-day operations of the Club. I have taken this action because of my deep concerns regarding the finances and operations of the Dodgers and to protect the best interests of the Club, its great fans and all of Major League Baseball. My office will continue its thorough investigation into the operations and finances of the Dodgers and related entities during the period of Mr. McCourt's ownership. I will announce the name of my representative in the next several days.
The Dodgers have been one of the most prestigious franchises in all of sports, and we owe it to their legion of loyal fans to ensure that this club is being operated properly now and will be guided appropriately in the future.
Reactions to Selig's move have been generally positive. For example, The New York Times baseball journalist Tyler Kepner editorialized that "Bud Selig has never looked better than he does right now."[15] However, ESPN correspondent Gene Wojciechowski criticized Selig and MLB, making the case that Selig and the 29 other MLB owners at the time turned a blind eye to the financial problems that the McCourts were known to have when they purchased the team in 2004.[16]
[edit] Frank McCourt's statement
In a statement to the press on April 20, 2011,[17] Owner Frank McCourt responded:
Major League Baseball sets strict financial guidelines which all 30 teams must follow. The Dodgers are in compliance with these guidelines. On this basis, it is hard to understand the commissioner's decision today.
Steve Soboroff, hired as the Dodgers vice chairman April 19, 2011, described the takeover of the team's operations as "irresponsible".[11]
[edit] Tom Schieffer appointed
On April 25, 2011, Selig appointed Tom Schieffer, former Ambassador to Japan and former President of the Texas Rangers, to oversee the team's finances. Schieffer must approve any team expenditure over $5,000.[18]
[edit] References
- ^ Wharton, David; Shaikin, Bill (April 21, 2011). "Major League Baseball seizes control of Dodgers". LA Times. http://www.latimes.com/sports/la-sp-0421-mlb-dodgers-20110421,0,2011898.story. Retrieved April 21, 2011.
- ^ Futterman, Matthew (April 21, 2011). "MLB Takes Over Dodgers Operations". Wall Street Journal. http://online.wsj.com/article/SB10001424052748704658704576275391124887176.html. Retrieved April 21, 2011.
- ^ Wharton, David (April 21, 2011). "MLB statement regarding the Dodgers". Los Angeles Times. http://www.latimes.com/sports/la-sp-0421-mlb-dodgers-20110421,0,2011898.story. Retrieved April 21, 2011.
- ^ a b Brown, Tim (October 14, 2011). "Dodgers owner separating from wife/team CEO". Yahoo! Sports. Yahoo! Inc.. http://sports.yahoo.com/mlb/news;_ylt=Ag9YTtKMBerr1fn9sXCgcbU5nYcB?slug=ti-mccourts101409&prov=yhoo&type=lgns. Retrieved April 21, 2011-.
- ^ Gurnick, Ken (January 14, 2010). "McCourt: Divorce won't affect Dodgers". MLB.com. http://losangeles.dodgers.mlb.com/news/article.jsp?ymd=20100114&content_id=7918308&vkey=news_la&fext=.jsp&c_id=la. Retrieved February 26, 2011.
- ^ Shaikin, Bill; Hall, Carla (December 7, 2010). "Dodgers in limbo after judge throws out McCourt property agreement". LA Times. http://www.latimes.com/sports/la-sp-1208-dodgers-mccourt-jamie-20101208,0,5619981.story?page=1. Retrieved April 21, 2011.
- ^ Winton, Richard (April 2, 2011). "Men sought in beating of Giants fan after Dodgers' opener". LA Times. http://www.latimes.com/news/local/la-me-04-02-dodgers-20110402,0,5917572.story. Retrieved April 21, 2011.
- ^ Simers, T.J. (April 2, 2011). "Dodgers can't ignore safety issue". LA Times. http://www.latimes.com/sports/la-sp-simers-20110403,0,2566017.column. Retrieved April 21, 2011.
- ^ Dilbeck, Steve (April 4, 2011). "Four days later, where is the Dodgers' response to Giants fan being attacked?". Dodgers Blog. LA Times. http://latimesblogs.latimes.com/dodgers/2011/04/four-days-later-where-is-the-dodgers-response-to-fan-being-mugged.html. Retrieved April 21, 2011.
- ^ Oberjuerge, Paul (April 3, 2011). "Waiting for More Than Words from Dodgers". Paul Oberjuerge. http://www.oberjuerge.com/http:/www.oberjuerge.com/waiting-for-more-than-words-from-dodgers/#more-1563. Retrieved April 21, 2011.
- ^ a b Shaikin, Bill (April 21, 2011). "Steve Soboroff defends Dodgers owner: "We need more people like Frank McCourt"". LA Times. http://www.latimes.com/sports/la-sp-0422-dodgers-web-20110422,0,425236.story. Retrieved April 21, 2011.
- ^ Dilbeck, Stevea (April 20, 2011). "Was the last straw for MLB a Dodgers loan against nothing?". Los Angeles Times. http://latimesblogs.latimes.com/dodgers/2011/04/dodgers-frank-.html. Retrieved April 21, 2011.
- ^ Brunell, Evan (April 20, 2011). "IRS looking at Frank McCourt". CBS Sports. http://www.cbssports.com/mcc/blogs/entry/22297882/28687742?asid=f25a8a68. Retrieved April 21, 2011.
- ^ "Major League Baseball seizes control of Dodgers". Press release. April 20, 2011. http://mlb.mlb.com/news/press_releases/press_release.jsp?ymd=20110420&content_id=18038724&vkey=pr_mlb&fext=.jsp&c_id=mlb. Retrieved April 21, 2011.
- ^ Kepner, Tyler (April 21, 2011). "Bud Selig Stands Tall". New York Times. http://bats.blogs.nytimes.com/2011/04/21/bud-selig-stands-tall/?partner=rss&emc=rss. Retrieved April 21, 2011.
- ^ Wojciechowski, Gene (April 21, 2011). "Blame MLB, too, for the Dodgers mess". ESPN.com. http://sports.espn.go.com/espn/columns/story?columnist=wojciechowski_gene&page=wojciechowski/110421&sportCat=mlb. Retrieved April 21, 2011.
- ^ Shaikin, Bill (April 20, 2011). "McCourt: "Hard to understand the commissioner's action"". Dodger Blog. LA Times. http://latimesblogs.latimes.com/dodgers/2011/04/mccourt-hard-to-understand-the-commissioners-action.html. Retrieved April 21, 2011.
- ^ "J. Thomas Schieffer to run Dodgers". ESPN. http://sports.espn.go.com/los-angeles/mlb/news/story?id=6426119.
