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SBD/September 27, 2012/Franchises
Report: MLB Gave Dodgers "Secret Deal" Limiting Team's Revenue-Sharing Liability
Published September 27, 2012
PANIC BUTTON: Phoenix-based bankruptcy attorney Thomas Salerno said that taken altogether, the settlement terms "suggest MLB was so eager" to get former Owner Frank McCourt out and “avert an open-court airing of charges he’d leveled against [MLB Commissioner Bud] Selig in filings that it made significant concessions.” Salerno said, “McCourt had a lot of leverage, because MLB did not want a public hearing on the inconsistencies with which it treats teams.” Manfred said that team owners were “briefed on this provision of the settlement, but language of the 'special terms' remains secret.” Sports consultant Andy Dolich said that “special treatment for the Dodgers bodes ill for baseball.” He said, “If you don’t have a codified set of rules that everybody is playing with then you have a different game. The ongoing divide between top and bottom in all sports creates a dynamic of question marks" (BLOOMBERG NEWS, 9/27).
FAMILY FEUD: In L.A., T.J. Simers notes McCourt’s ex-wife, Jamie, filed a motion in court because she “believes Frank committed fraud by understating his assets.” She has asked for "all documents related to the Dodgers’ sale.” This “includes the very same details Guggenheim has steadfastly refused to publicly divulge” (L.A. TIMES, 9/27).