Frank McCourt will gladly pay you on Tuesday for a Los Angeles Dodgers payroll payment today.
Bill Shaikin of the Los Angeles Times reports that the unpopular Dodgers owner recently took a $30 million loan from FOX to cover the costs associated with fielding a major league baseball team.
Not exactly the type of news you want to be hearing if you're a Dodgers fan, especially as this week's five-game losing streak has sent the team to the bottom of the NL West after a good start to the year.
The arrangement is expected to cover the Dodgers' expenses into next month. Commissioner Bud Selig has yet to say whether he will approve a proposed television contract between Fox and the Dodgers, which McCourt has presented as a long-term solution to the team's financial troubles.
The loan marks the second time since the end of last season that Fox has provided money to the Dodgers' owner so he could cover expenses.
Shaikin reports that McCourt's loan is of the personal variety, so Uncle Bud didn't have to approve the borrowing like he would if it was through the team. As we blogged back in February, Selig reportedly nixed a $200 million loan from FOX because it would have required four years of Dodgers' television rates to be put up as collateral for below-market rates.
The latest TV deal between McCourt and FOX is expected to be in the neighborhood of $3 billion over 20 years and would allow the owner to meet payroll, manage the team's debt and maintain sole ownership as he'll have the prerequisite cash to settle the nasty divorce with his wife. FOX would also be paying the Dodgers about three times what they're currently making off their television rights.
Nevertheless, if Selig doesn't approve the deal, Shaikin predicts that McCourt will find himself in the middle of another contentious court battle — this time with Major League Baseball.