L.A. can’t pay: Dodgers short on cash, may not be able to meet payroll
Los Angeles, CA, United States (AHN Sports) – The Los Angeles Dodgers currently do not have enough cash to meet payroll through May according to a report.
If true, the new developments could accelerate a showdown between owner Frank McCourt and Major League Baseball over control of the club.
According to the Los Angeles Times, the cash shortage was confirmed Tuesday by two people familiar with the matter, speaking on condition of anonymity because of the possibility of McCourt filing suit against MLB.
Last month McCourt got a $30-million loan from Fox, which allowed the Dodgers to meet two April payrolls and should be enough for the first May payroll. The second May payroll, due at month’s end, could be a problem.
If McCourt were to fail to meet payroll, the league would cover the expenses and would have the option to seize the Dodgers from him, according to the report.
McCourt reiterated Tuesday that the Dodgers’ financial difficulties would be resolved if Commissioner Bud Selig would approve a proposed $3-billion television contract with Fox, which would include an immediate payment of $285 million.
With Selig refusing to approve the contract and by appointing a trustee and empowering him with financial control of the team , McCourt believes the team has been seized already.
Selig does not plan to accept or reject the Fox deal until after trustee Tom Schieffer completes his investigation into the team’s finances.
“It will be a thorough investigation,” Schieffer said. “I would anticipate it would be longer than two weeks.”
McCourt could need outside financing to meet the second May payroll but according to the report another loan from Fox is “very unlikely. That would McCourt the option of surrendering the team or filing suit against MLB.
View full post on All Stories
