Court Filings Shed Light on Dodgers Financial Plans

from Shakin:

Her lawyers hinted at one possible challenge to the agreement by suggesting in Thursday’s filing that the McCourts might have used revenue from the Dodgers “as if it was their personal ATM or credit card” to support their lavish lifestyle. Also, as a result of carefully structured business entities, the McCourts have “paid no federal or California state income taxes since at least 2004,” according to the filing

Wow!

If the estimates above are right WRT the television network, I maintain the business model for Frank remain the same. He bought the team (I assume) under an EBITDA multiple which excluded the broadcasting revenue. Assuming Frank can hold on to the Dodgers through 2014, he will be able to sell the Dodgers at a higher EBITDA number which includes broadcasting revenue. At this point, he will have himself set up for life. Considering that the above notes that he has grown revenues since his purchase, the sales price after 2014 should be pretty darn strong. And one could argue that Frank has added value, the revenues have increased, the stadium improvements have been made,etc.

He just needs to hold on until 2014.

2008
$295m revenue – $120m payroll (I’m rounding) = $175m
$23m reported profit means there were $152m in other expenses

2009
$285m revenue – $110m payroll = $175m
“broke even” means there were $175m in other expenses

I would image the difference lies in the costs for Camelback Ranch (or at least the difference in CBR and the previous Dodger Stadium upgrades).

is a look into the Dodger financial caves. Frank may not like but at least we dont’ have to make guesses anymore on what the revenue stream is. When I have time I’ll read the stories, for now I’m just going to check out the headlines.

Just leave the team alone. What’s the future hold for them?

If the Dodgers are getting boatloads of cash in 2014, they better use it to pay Kershaw the megabucks.

I don’t find the not paying taxes a big deal. That is why developers/financial institutions have lobbyists so those with money don’t have to do what the rest of us have to do. If she has opened herself up for tax liability issues then she must have idiot lawyers and I doubt that is the case. I’m sure everything they laid out was gone over with a fine tooth comb by qualified professionals. If not, then yes they are idiots.

On the other side of the coin I expect she just burned any bridges she might have had in trying to become the leader of a group to buy the Dodgers if she does win her suit related to ownership of the team. As Eric said, Selig must be fuming.

So Eric if the Dodgers revenue climbed from 153Million to 285Million how far has the payroll to revenue % declined since 2003. I don’t have payroll figures for 2003 so just curious if you do.
Guessing Only:

If they spent 100 Million in 2003 with Revenue of 153 Million they were spending roughly 65% of revenue on payroll. In 2010 that would be roughly 35% of Revenue on Payroll. Expenses for employees and Dodger Stadium should have remained close to the same. Additional expenses would really only be the debt service on the capital improvements. Wish I had time to really look at this but off the top of my head that is the most interesting part of the data today. That is an amazing job in building revenue, see what happens when you raise ticket prices but keep payroll constant.

obvously a lot of posturing going on. Much of what may come out regarding the Dodgers (and MLB) finances may cause Bud Selig and other owners some issues going forward. What they are, I don’t know at this point. In the end I hope for the best when it comes to the Dodgers, or at least if anything they do the right thing and sell the team to someone who has the capital to put this team on top.

per Ken Gurnick:

Manny Ramirez, who didn’t sign until March last year, just checked in at the Dodgers Camelback Ranch-Glendale complex

After watching the link in the last thread, I was surprised that it didn’t look absolutely horrible.

I imagine it will be fun for young kids.

Joshua Fisher made this admonition the best:

Lastly, and this is important: remember that all of this comes from Jamie’s filings. Frank’s will probably be equally (but oppositely) outlandish, and the truth likely resides somewhere in the middle.

The Gagne deal is official BTW. He’ll be at CBR tomorrow.

Eric, when are you headed to Glendale (or are you already there)?

Lakers winning the championship were the top moment of the year.

Dodgers had two “moments” in the top 10:

4. Dodgers Sweep Cardinals to Advance to NLCS (October 10): Dodgers win the NL West for the second year in a row and sweep the Cardinals to reach the National League Championship Series.

6. Ethier‘s Walk-Off Heroics (November): Dodger right fielder Andre Ethier is named MLB’s Clutch Performer of the Year after leading the majors with six walk-off hits, including four home runs.

The WBC title game was tied for 10th

Details and perhaps pictures will be up soon on the LA Sports Council website.

Inspired by that Beyond the Boxscore DL payroll article. Thanks for the tip, prosellis.

http://www.truebluela.com/2010/2/19/1318770/2010/2/19/1318770/dodgers-lead-mlb-in-payroll