Tuesday, May 31, 2011

To meet payroll, Frank McCourt cashed in on future sales...once again

Nobody likes you, Frank. Sell the team already.
Frank McCourt was able to meet the Dodgers' team payroll by drawing cash advances from future sponsorship deals, as reported by Molly Knight.

It seems impossible that McCourt can pull this off every two weeks. In June, it gets worse as $6 million in deferred salary to Manny Ramirez becomes due. He'll have to devise some other clever ways to leverage the club's future. Dodger Dog futures?

Knight also reports that sponsors were offered discounts as an incentive to pay up front. In Jamie McCourt's eyes, the end result of this trade-off is reduced revenue. Plus, with about 7000 fewer fans a day passing through the turnstile, no wonder Jamie recently told a judge that her ex-hubbie's mismanaging of the Dodgers is causing the team's value to go down the toilet.

Maybe I'm getting ahead of myself, but the new owner won't like it either that McCourt has already sold future sponsorship deals.

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