Tuesday, June 28, 2011
News From Delaware As Frank Gets To Use His Own DIP Financing
Apparently, this means that MLB's line that the Dodgers didn't have authority to file bankruptcy is a non-starter, or at least that MLB is rescinding that line of attack. MLB's initial response was a fireball; as Jon pointed out on Twitter, the founding of Dodger Divorce can be seen on page 8, point 18.
Bill Shaikin has a fuller account at the LAT's Dodger blog.
It shocked me to realized that I haven't updated the list of firings since 2005. Mike Petriello of MSTI asked about it earlier in the day and, well, wow.
Steve Dilbeck is just wrong. Angelenos are very forgiving; it starts with winning.
MLB will move within days to have its monitors -- Schieffer and Allen -- re-installed at Dodger Stadium. Also, will request a trustee...As I estimated. The important thing was to hack off another avenue where Frank might get future revenues so he could further indebt the team.
Sources: MLB very happy with events today in Delaware. Most important thing to delete media rights auction. Figure out rest in 3 weeks.
Update 2: Frank will only get $60M of the $150M DIP financing. MLB plans on filing additional motions to control the team by restoring the monitors.
Update 3: Keep this It's About The Money post handy in another tab while re-reading which entities are generating revenue, versus the list at Dodger Divorce which are going into bankruptcy. Los Angeles Dodgers, LA Holdco, LA Real Estate Holding Company, LA Real Estate, and Los Angeles Dodgers Holding Company (all LLCs -- omitted for the sake of clarity) are all entities filing for bankruptcy protection. Yet according to the IATM post, the money-generating parts of the McCourt empire are Blue LandCo, LA Real Estate, and Dodgers Tickets LLCs. We know that the McCourts heavily indebted Dodgers Tickets to get the mansions, but why is Blue LandCo not part of the bankruptcy filing? Could it be that Frank is paying himself first while keeping the team, its former trading partners, and Vin Scully hanging?
Update 4: MLB is likely to file a motion to terminate the Dodgers' franchise within days.