Yesterday, Frank McCourt secured a loan of $150 million to help the Los Angeles Dodgers make payroll and pay all of their expenses. Reportedly, the loan is a pretty terrible one. It includes a $4.5 million nuisance fee and 10 percent interest, which is pretty insane for an organization who, despite their current bankruptcy proceedings, has close to 10 figures in assets. Major League Baseball, understandably, disagrees with McCourt's financing plan and is expected to offer an alternative financing solution.
Los Angeles Dodgers Secure $150 Million Loan, MLB To Offer Financing Option
Because the Dodgers have filed for Chapter 11 bankruptcy protection and they are going through (possibly long) bankruptcy proceedings, that loan has to be approved by a judge. This is where MLB steps in with an alternative option that the judge could force McCourt to take instead of the loan he found for himself. Speculation is that their offer might include a provision that the team be sold to the highest bidder, which a bankruptcy judge might find exceptionally appealing, even if McCourt doesn’t.
That offer is purely speculation, though, as there are currently no details out on a potential MLB offer. If McCourt gets his way and secures the loan he got for himself, these bankruptcy proceedings could take a long time.
See More:
