In the never-ending saga of the McCourt divorce proceedings, the settlement may come down to a TV deal.
Frank and Jaime McCourt announced a tentative resolution Friday, one that requires Major League Baseball approval of a long-term contract between the Dodgers and Fox. McCourt has often reiterated that the deal is essential to the Dodgers’ long-term financial viability.
Also read: Dodgers Owner Frank McCourt Claims MLB Is Squelching His TV Deal (Video)
Though baseball’s primary revenue stream is still through the games themselves — attendance, apparel, concessions and so forth — lucrative television contracts can greatly increase profitability. Both of the New York teams (Mets and Yankees) found this out by forming their own networks (SNY for the Mets, YES for the Yankees).
(Granted, the Mets’ financial situation has been undermined by owner Fred Wilpon’s dealings with Bernie Madoff.)
While Selig has not yet acted in the case of the Mets, the Dodgers are another matter. McCourt has been something of a pariah for the last couple years due to alleged financial mismanagement that has sullied the reputation of one of baseball’s most prized franchises.
When reports surfaced that McCourt sought a $30 million loan from Fox to meet payroll, Selig stepped in and took control of the Dodgers. He appointed Tom Schieffer as his trustee, giving him the power to oversee all financial transactions and day-to-day operations.
The loan raised eyebrows among fans because of all the reports of the McCourts’ lavish spending. For both MLB and media executives, the greater concern was that it came from Fox, with whom the Dodgers hold their current TV deal.
McCourt insisted it was a personal loan, and he has gone on the offensive over the past few weeks. He has threatened lawsuits, claiming MLB had no right to seize control of the team. He has also said that the league’s decision “predetermined.” Predetermined or not, few expect Selig to sign off on the deal.
While Jaime has agreed not to challenge it, it may not matter. If Selig rejects the deal, the settlement is void and court proceedings will resume. Selig’s administration is in the course of investigating the team’s finances, which could result in a forced sale.
The same outcome would almost certainly occur if Los Angeles Superior Court Judge Scott Gordon rules that the Dodgers are community property. The McCourts also announced Friday that they have agreed to a one-day trial for Gordon to determine the Dodgers' ownership.