Ever since Frank McCourt's heavily-leveraged purchase of the Los Angeles Dodgers in 2004, there have been concerns about his financial wherewithal. The high-profile and very public divorce trial with his wife Jamie has done nothing to calm those fears. Those concerns became heightened Friday, when it was reported that McCourt had money advanced to him from Fox to cover current operating expenses, per Bill Shaikin of the Los Angeles Times:â†µ
The Dodgers had projected revenue of $279 million last year and $287 million this year, according to court documents. Fox owes the Dodgers $35 million for television rights this year, $37 million next year and $39 million in 2013, according to the documents.â†µ
On one hand, borrowing money is something businesses do all the time, so this could just be no big deal. But considering that player salaries are paid during the six-month baseball season, the idea that current operating expenses are too much for McCourt to handle is troublesome. If January operating expenses, which don't include player salaries (well, except for a $300,000 deferred signing bonus to Jamey Carroll), are too high for Frank, how will he be able to make ends meet during the season?â†µ
The Dodgers payroll in 2011 is currently estimated at $109 million. Whether this cash advance will pose a problem going forward for the Dodgers remains to be seen. Dodger fans will just have to wait and see.â†µ
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