Love Gone Bad and the Price of Tickets
So this is what it feels like when Mom and Dad get a divorce.
Jaime and Frank McCourt have announced they’re splitsville. No, I’m not related. But I am a 30+ year season ticket holder of the Dodgers, the major league baseball team the McCourt’s happen to own, and what will no doubt be the most prized asset in their divorce, assuming they don’t kiss and make up. So I, as many Dodger fans will, stand to be traumatized by what happens to the team as a result of love gone bad.
Dodger owners Jaime and Frank McCourt, in a intimate moment from a few years ago, have recently announced their split. No truth to the rumor of a love triangle involving Tommy Lasorda, left.
For years Dodger fans were spoiled by the steady, paternalistic ownership of the O’Malleys. Walter O’Malley was very shrewd, and certainly never met a buck he didn’t want to make, but he did swing the sweet land deal for Chavez Ravine that resulted in the Dodgers moving west in 1958, and he did get one of the greatest baseball parks of all time, Dodger Stadium, built. He treasured it like the jewel it was (and still is) and for the most part provided good teams in a great ballpark at very reasonable prices. When his son Peter took over stewardship of the team, he seemed to always recognize and acknowledge that while the team belonged to his family, the entire city of Los Angeles had a very large equitable interest. He was one of the few owners of a professional team to seemingly put what his team meant to his city ahead of his personal interests.
When baseball economics got crazy, and no doubt scared by the labor strike in the mid-90's, Peter O’Malley determined that it was too risky to have his family’s entire wealth tied up in one professional sports team. He tried to cross-collateralize his investment by also acquiring a football team to play in a stadium to be built next to Dodgers stadium, which would have provided the investment diversity he needed to continue to own the Dodgers, but was blocked by councilman Mark-Ridley Thomas who was insistent that any new football team in Los Angeles play in the aging Coliseum, which happened to be in his district. Ever mindful of his civic responsibilities, Peter O’Malley backed off rather than start a fight a City Hall and reluctantly concluded that without the football team he would have to sell the Dodgers, which he did.
For those of us fans who consider ourselves part of the Dodger family, this began what feels like a bad trip through a twisted foster care program. Instead of the paternal O’Malleys, mom and pop was now Fox, the giant media conglomerate. Decisions were now being made by temperamental televison executives with no major league baseball experience, whose idea of running the team was to trade its best and most popular player, Mike Piazza, without consulting the team’s general manager to send a warning to the rest of the players to be reasonable at contract time or be gone.
If Fox proved to be a parent whose decision making skills were somewhat lacking, at least they had enough money that they didn’t have to jack up ticket prices. Enter the McCourts, who bought the team from Fox for what is estimated at 450 million. Unfortunately the McCourt’s didn’t have 450 million laying around, and if memory serves they borrowed most of the money for the purchase from Fox. An early version of the nothing down deals which have led to calamity in the mortgage industry. The McCourts secured the transaction with their major asset, some prime parking lots in Boston, from whence they came (hence the L.A. Times’ T.J. Simer’s nickname for Frank McCourt as "The Parking Lot Attendant"). The McCourts eventually sold the parking lots to pay Fox, but from the day they bought the team there has been rampant speculation that they really couldn’t afford it and lots of questions about whether they have enough remaining assets to adequately operate the Dodgers and keep the team and its stadium at the high level they have traditionally enjoyed.
Frank McCourt chats with Dodgers fans at a recent game
To their credit, the McCourts nixed proposals for a new stadium downtown near Staples Center (which they probably couldn’t afford anyway and for which there would be no public money) and announced that the beloved Dodger Stadium wasn’t going anywhere. They invested a lot of money in updating Dodger Stadium (or at least the Field Level, where the most expensive seats are), and managed to spend enough money - or acquire good players from other teams for nothing but minor league prospects - to keep the team competitive.
Ticket prices were another matter, however. It was as if mom and dad had suddenly announced that not only were you going to pay rent for your room, your room was now considered to be in the high rent district. Until the recession/depression hit last year, the McCourts substantially raised ticket prices every year. Recently it was announced that the first three rows in the seats closet to the Field would now run $200,000 a season for four seats. My own seats in the Loge went from $30 a seat to $50 a seat - a 66.66% increase - in two years. It was clear that the McCourts did not have the resources of a Fox corporation to subsidize baseball operations. In order to meet operating expenses and make enough profit to support themselves and the four expensive houses they would buy in the LA area (I’m still not sure why two people needs four homes unless they’ve each got a plaything stashed) the money would have to all come from the baseball business. They jacked up ticket prices and plastered advertising on what seemed like every square inch of Dodger Stadium. When Frank ordered the names removed from the back of the player’s jersey for one season I was sure it was because he wanted to replace them with more advertising. They also started marketing all kind of bizarre money-makers like sleep overs at Dodger Stadium, yoga classes with the team’s right fielder and $500 a pop events where you could take batting practice and have a meet and greet with a couple of Dodgers.
So what’s to become of us now? Recently a divorce forced the then owner of the San Diego Padres to sell that team, in order to equitably divide the marital assets. According to an article in the LA Times, Frank McCourt’s lawyer claims there in no chance that he will sell the team. The same report however, puts the value of the Dodgers at $722 million, with the value of the four houses in the neighborhood of $82 million. Clearly one McCourt can’t take the team with the other keeping the real estate.
Jaime McCourt at Game 1 of the National League Division Series, a few days before the break up was announced.
This is where things could get really interesting. How interesting may depend on the McCourts themselves. No gossip yet on what caused the split, but my guess is there must be some very messy and titillating details about to spill (don’t you just love a good scandal?) Why else would the McCourts have chosen the eve of the National League Championship Series in which their Dodgers will be playing the Phillies for the right to represent the National League in the World Series to suddenly announce their split? Couldn’t this have waited until after the play offs? I’m sure Major League Baseball can’t be too pleased with their timing. It’s as if Dad decided to use his toast at his daughter’s wedding to announce he’s coming out of the closet now.
Things have apparently been bad between Jaime and Frank for awhile. The McCourts use to be at almost every game together, but this season my wife often commented that Jaime never seemed to attend anymore. I noticed her at Game 1 of the National League Division Series, but instead of sitting next to her husband Frank, she sat several rows in front of him. I also thought it funny at the time that instead of something Dodger blue she was dressed all in black, like she was in mourning. Maybe she was. Anyway, surely they could have waited another couple of weeks to go public with the news. The fact that they didn’t leads me to believe they chose to go public before someone else did.
In any event, the McCourts have always been highly sensitive to bad publicity. So sensitive that since arriving here in LA they’ve gone through public relations specialists faster than Joe Torre does bullpen pitchers. They tend to toss PR guys or gals out with the bad news and bath water. Hopefully this will provide incentive to both of them to keep things civil and cooperate on a fair settlement that will provide a minimum of disruption to the team.
Unfortunately, when going through a divorce a lot of people don’t want fair - they want blood. If parting is such sweet sorrow, revenge is the sugar coma to end all sorrow. Having handled a few divorces in my time, when you get two very angry, irrational people going through a divorce all you can really do is step back and let your billings go through the roof.
How stupid can people going through a divorce be? I remember handling a divorce for a soap opera actor who came home from a movie shoot to find that while he was gone his wife - a soap opera actress - had literally backed up a truck to house and stripped it clean. Every last item they owned left in the back of that truck. She also cleaned out all the bank accounts. She even took his residual checks out of the mail, deposited them and took that money too.
I assured him that I would get his half back (California being a community property state). No he insisted. He didn’t want to get hung up in a long, messy and expensive divorce. All he wanted was a paper-mache statue that was his before they got married and wasn’t worth anything. It just had sentimental value to him. If she would give that back, she could keep everything else.
I told him that I didn’t recommend he do that, but if that’s what he wanted I would call her lawyer and make the offer. Her lawyer was thrilled. "Shouldn’t be a problem!" he kept chuckling. "I’ll highly recommend she take the deal. Let me call her and get back to you."
An hour later he called back.
"She won’t give it back."
The McCourts are both smart and shrewd business people. Jaime is also a lawyer, so she ought to know something about the futility of litigation. Often there’s a prevailing party in name only. If the real gains and losses are totaled, both sides lose. Conversely, if both sides are smart, civil and rational, they can make the best of a bad situation.
Will the McCourts? So far its not looking good. Reportedly on paper Frank is the sole owner of the Dodgers and all the real estate is in Jaime’s name only. Could be that they have some arrangement already in place, but Jaime doesn’t strike me as dumb enough to let Frank have a 700 million plus asset in return for some houses worth about 15% of that. Could be they set it up that way as some sort of protection against creditors in case they got in over their head.
In any event, Frank is supposedly now claiming the team is 100% his, and Jaime’s begging to differ. At this point you have to vote messy if you were predicting how this split is going to go. I never learn. A few years ago when I heard about the tv show "Celebrity Justice" I wondered how where they were going to find enough celebrity legal matters to fill a daily show. Turns out there’s as many or more troubled, rich famous people as troubled, not so rich not so famous people. Frank and Jaime are just the latest to the party.
If they do duke it out, they stand to not only embarrass themselves but the team, the town and the fans. The only one who may benefit (aside from their lawyers) might be Clippers owner Donald T. Sterling. Sterling is usually the poster boy here in LA for an owner with too many cents and too little sense, and has his own well documented legal troubles. Having the Dodgers collapse while Frank and Jaime squabble over ownership and control can only elevate his status.
When ownership and control of the team is in doubt, paralysis sets in. There may be delays in retaining key people, and those key people may decide not to wait around to see who wins or who loses. They may opt for more secure opportunities elsewhere. Players may not be able to be retained or free agents pursued because its not clear who can negotiate or authorize the contracts for them.
The best hope for us fans maybe for them to agree to sell the team. Of course we’d want the buyer to be someone like the Angel’s Arte Moreno, as opposed to another Fox. We don’t want the cure to be worse than the cold. Hey, maybe Scott Boras can use some of that money he’s fleeced from the Dodgers over the years to buy the team. It’d be nice to have him on our side of the negotiating table for a change.
Otherwise I don’t see how this can work. Even if the McCourts decide to keep the team as co-owners, there’s likely to be friction and factions. There will be Frank loyalists and Jaime loyalists. Ah the corporate politics that may portend. As an example, a few days before the announced break up, a Dodgers VP thought to be highly valued by the organization was told he should start looking for work somewhere else. His crime? Apparently he had aligned himself with Jaime. In short, it would be hard to picture the organization as having unity and clarity of vision with an ex-husband and wife sharing ownership. The more hostility there is between them the less likely everyone will be ho-ho-hoing it up at the annual Christmas party.
And if one of them agrees to let the other buy them out, where does the money come from? Maybe a new partner. Or maybe a loan. And if it’s a loan, you know what that means. Ticket increases across the board to pay for love gone bad.
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23 comments
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Comments
Steve
this is a great post and as a divorce lawyer your take on this as it unfolds is going to be useful. We wanted to leave the the divorce stuff until after the playoffs but this is so well written I’m going to put it on the front page.
Patience is for those who die waiting for something to happen
by Phil Gurnee on Oct 17, 2009 12:26 PM PDT reply actions 0 recs
Compare what Steve just wrote
to what Tom Hoffarth of the Daily News wrote and you tell me who should have gotten paid. Hoffarth sounds like he could go work for the E channel. What a bunch of drivel.
Patience is for those who die waiting for something to happen
by Phil Gurnee on Oct 17, 2009 12:29 PM PDT reply actions 0 recs
If parting is such sweet sorrow, revenge is the sugar coma to end all sorrow.
Patience is for those who die waiting for something to happen
by Phil Gurnee on Oct 17, 2009 12:30 PM PDT reply actions 0 recs
The best hope for us fans maybe for them to agree to sell the team. Of course we’d want the buyer to be someone like the Angel’s Arte Moreno,
well if George Lopez scores a hit on TBS all of these problems might just melt away
by shooterm1 on Oct 18, 2009 7:13 AM PDT up reply actions 0 recs
Great article. The Dodgers are fuuuuuuuuuuuuuuuucked.
by Tripon on Oct 17, 2009 12:44 PM PDT reply actions 0 recs
nice article
just hoping this doesnt fuck up our future….
Because when I think of Boris Diaw, I think of Beethoven and the age of Romanticism....
by shaqfor3 on Oct 17, 2009 1:19 PM PDT reply actions 0 recs
Yes, I agree were fucked, time to win it now guys!
At least for some interim amount of time until this gets sorted out and the blood dries.
by Dodger Dude on Oct 17, 2009 1:28 PM PDT reply actions 0 recs
I metioned this on 6-4-2
But I wouldn’t be shocked if the McCourts decide to put one of their sons up as a figurehead owner as a compromise, and to make sure the team stays in the family.
by Tripon on Oct 17, 2009 1:32 PM PDT reply actions 0 recs
Wow, that's better than my idea of giving Jamie Home Plate to Mannywood
and Frankie getting Home Plate to Ethierland!
Seriously, if they keep the team one is going to have to opt out of operations and just collect a check, and you can bet every financial move will be over scrutinized, and two approvals while negotiating with uberagents would be a major hurdle. The best option would be a sellout with a buy in from a minority partner who just wanted the Dodgers to win (e.g. LA’s favorite sugardaddy Eli Broad). But since Fox still has their grubby little hand in there somehow that probably would be difficult. Really until this sorts out were probably just fucked, but a quick buyout would be the best to hope for without busting up this team.
by Dodger Dude on Oct 17, 2009 2:03 PM PDT up reply actions 0 recs
I wouldn’t be shocked if the McCourts decide to put one of their sons up as a figurehead owner as a compromise, and to make sure the team stays in the family.
the funny thing about this is (well, maybe funny isn’t the right word here) ….
but I remember distinctly reading that Frank said that he bought the Dodgers as a gift to Jamie and as a legacy to his children. In fact I’m pretty sure that he’s on tape somewhere uttering words to that effect as well …
by shooterm1 on Oct 18, 2009 7:24 AM PDT up reply actions 0 recs
no!
I hope this is quick and easy. I don’t want the future to be messed up over these two guys. I can see Jerry Buss buying the team.
by spacey32 on Oct 17, 2009 1:43 PM PDT reply actions 0 recs
Wow
I don’t agree with 100% of the suggestions, but this is an outstanding article and a very compelling read. Thank you very much for taking the time to write this and share your thoughts with us. Great stuff.
2009-10 LA Kings Hockey: Where Smyt Happens!!
by DodgerBlueBalls on Oct 17, 2009 2:40 PM PDT reply actions 0 recs
Good post
This is probably a good place to reiterate that Fox continues to hold the broadcast rights to the Dodgers; they were never part of the sale to McCourt, and the lack of that key revenue source is certainly a contributing factor to things like the ticket prices increases we’ve seen during the McCourt era. That doesn’t change if the McCourts are forced to sell to new ownership, because Fox’s rights run through the 2013 season.
by David Young on Oct 17, 2009 2:47 PM PDT reply actions 0 recs
So what happens to the Dodgers
if the divorce settlement takes a long time to finalize? If the ownership of the team is in dispute during the off-season, is it even possible to commit funds to signing new players or management?
by prosellis on Oct 17, 2009 3:24 PM PDT reply actions 0 recs
Very thoughtful piece
The only thing is, I’m not sure why people keep saying “Why did the McCourts choose to announce this now?” I’m sure the McCourts would have been quite happy never to announce it, let alone announce it now. Ken Rosenthal decided to let the cat out of the bag by reporting it and basically forced the McCourts’ hand.
by JonWeisman on Oct 17, 2009 8:24 PM PDT reply actions 0 recs
excellent post counselor
clipster hipster, you actually for a few minutes made me rethink my opposition to becoming a divorce lawyer, that’s how good and thorough your post is. i’d still rather not get in the middle of other people’s personal private lives, that are now going to get very messy for the mc courts.
unless frank and jamie figure out a way to sell the team to a hollywood mogul or socal gazillionaire by next year, i’m afraid the next two or three weeks, however much longer the endless postseason calendar takes to complete the world series, are the best the doyers are going to see for a while. considerl; joe torre’s three year contract is up at the end of next year and manny’s two year deal is too. joe will be 70 and manny 38 and joe has already said repeatedly that this is the last managerial contract he will sign. age for both of them has one foot out the door. an uncertain future will probably be the second for both.
if the mc courts dont sell and try and keep the dodgers somehow, i would expect more front office personnel to leave or be shown the door, if not because of a power vacuum between the two, because of the uncertainty. and that will prevent anybody from committing to the dodgers this off-season and possibly next. that means current players who will become free agent eligible, free agents who are interested in signing with the doyers but not under the current regime and all guys who have a no-trade clause. the dodgers can forget grabbing a roy halladay or other legitimate #1 pitcher that is the only thing they currently lack. keeping the likes of ethier, kemp, etc. will become that much harder.
by no means does this spell doom for the doyers. but neither is the current two year run, not very long compared to the phillies, cardinals, twins, red sox, angels and yankees of this decade likely to continue. the doyers if they don’t win the world series this year, or at the very least get there and make a respectable showing are probably not going to be any further along in three years and as memorable as the 2008 rays or 2006 tigers, teams that had a nice year or so with nothing to really show for it. and when this begins to set in, what are we fans to do??? i have a suggestion that is radical in these parts but makes perfect sense and was already alluded to when the author let slip that he’d rather see a successor owner in the mold of arte moreno and not rupert murdoch . . . become an angel fan.
by SoCalCMH on Oct 18, 2009 4:24 AM PDT reply actions 0 recs
That photo? )Halloween spooky)

tommy looks like he’s riding in an open limo through Dallas
by shooterm1 on Oct 18, 2009 7:09 AM PDT reply actions 0 recs
Thanks for the nice comments
Appreciate the kind words but wish to clarify that I don’t specialize in family law and rarely do divorces any more. Decided to stop taking them a few years ago because the clients were usually just to crazed to deal with.Thanks again and glad you liked it Phil.
by Clipster Hipster on Oct 18, 2009 10:18 AM PDT reply actions 0 recs
A very well written piece..
You can write a novel on your anecdote about the paper mache doll…
I always felt that diplomats and marriage counselors should can interchange their jobs, given that I think marriage counselors have it worse than diplomats dealing with warring factions..
by superferret on Oct 19, 2009 9:49 PM PDT reply actions 0 recs
So interesting.....
that domestic troubles, media concerns, sports teams, fans and lots ‘o money are all tied together in what looks like a Dance of Folly, if not a Dance of Death. Naturally, the fan will be hurt, and the team itself may be hurt. I just hope that Dodger Stadium continues to be a nice place to visit—-although you wouldn’t want to live there. The Curse of Chavez Ravine lives on—-all the bad mojo O’Malley caused by stealing the land (with the help of LA politicians) has haunted the Dodgers ever since. Because we live in an age of tabloid journalism, be ready to not only see and hear the dirty laundry, but smell it, as well.
"It's a cookbook!"---The Twilight Zone
by Buck18 on Oct 20, 2009 8:38 AM PDT reply actions 0 recs
I think the big issues are...
McCourts loan and interest repayments, he has to around $25 million a year alone on his 25 year $250 million loan, ($10 million annual + 14 million of %5.66 annual interest) which is has to maintain AAA credit rating, (ie he can’t miss payments) let along the short terms loans he needs to run the day to day operations, let alone his other loans he still has to pay to buy the Dodgers..
I would be curious of why they are getting divorce, I always thought he couldn’t hold on to the team because of the amount of leverage he used to buy the team. The McCourts also have $85 million in residential Real Estate, which is worth less now than the mortgages to secure them.
by superferret on Oct 22, 2009 3:37 PM PDT up reply actions 0 recs
Excellent peice
Just got a chance to read it. Really well done.
by Michael White on Oct 20, 2009 8:58 AM PDT reply actions 0 recs

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