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Sat, Oct

Frank’s Real Problem: Nobody Trusts the Bum

DODGER BOOS - It was not so long ago that Frank McCourt was running with the Big Dogs: a billionaire life style, private jets, and estates in Bel Air, Malibu, and Cape Cod.  And in 2009, he was the toast of town as the Dodgers won the division title and the first round of the playoffs and led all teams in attendance as 3.76 million fans (an average of 46,440 per game) came to Chavez Ravine.

But today, the Dodgers have a losing record and attendance for the first eight home games is off 13.3%. And the general feeling is that the Dodgers will be lucky to have a winning season.

Frank’s finances are becoming increasingly desperate. The highly leveraged Dodgers are in default on their bank loans, denying him cash to pay his alimony, his multiple mortgage payments, the upkeep and taxes on his many houses, and even his high priced lawyers.  The Commissioner of Baseball rightfully rejected his $200 million loan deal with Fox Sports because it would not benefit the team. 

But the very clever Boston Parking Attendant pulled an end run around the Commissioner and personally borrowed $30 million from Fox Sports, supposedly to help meet payroll on April 30.  More than likely, Frank will skim a few dollars off the top for his personal obligations.  

But the coup de grace may have been the unprovoked Opening Day beating of Byran Stow, a 42 year old Giants fan from Santa Cruz, by two out of control gang bangers in the parking lot after the game.  As Stow, a paramedic and the father of two lies in a coma, the police have a high profile dragnet looking for these hoods. 

The financial consequences of this violence and the resulting adverse publicity will be enormous.

Without doubt, the Dodgers will need to beef up security.  As part of his public relations campaign, Frank even hired Billy Bratton, a Boston native, who just happened to be LA’s former Chief of Police. But the added security at Dodger Stadium will more than likely cost an additional $2 million a year.

Then there is the cost of litigation. While the Dodgers may have adequate insurance, the insurance companies will no doubt investigate the level of security at Dodger Stadium to see if the Dodgers were doing a proper job.  And what they will find is what fans have known for a long while: Dodger Stadium is no longer a safe family environment and that security is so lax that the joint, especially the right field bleachers, has been overrun with gang bangers and drunken, foul mouthed jerks. 

This will give rise to the question as to whether the Dodgers, its management, and its owners were grossly negligent, which may negate any coverage.

In any event, the Dodgers’ insurance premiums will increase significantly.

However, the impact of the adverse publicity on this losing team will be devastating, causing many fickle fans to stay at home rather than risk their lives at Dodger Stadium.

If attendance for the year is down 13.3% for all 81 home games, there would be 475,000 fewer admissions (about 5,900 per game), resulting in a revenue loss of about $19 million in admissions, concessions, and parking.

However, the drop in attendance might be even greater.  In the four game series against the hot hitting Cardinals, the average per game head count was 28.6% lower than last year’s three games against St. Louis.  If that trend were to continue throughout the year, then revenues would be off $40 million.

This compares to operating profits after MLB Revenue Sharing and interest payments of only $10 million in 2009.

Needless to say, the lenders to both the Dodgers and McCourt are very concerned about the impact of significantly lower attendance and higher security expenses, both of which come off the bottom line. 

But of greater concern is that the Commissioner of Baseball and the other owners do not trust the Boston Parking Lot Attendant, especially after he pulled a “fast one” by borrowing $30 million personally from Fox Sports.  A reliable source indicated that the Commissioner is more than a little upset at this breach of trust.

But then again, this is nothing new to the people who did business with Frank back in Boston.

To compound Frank’s difficulties, Bingham McCutchen, the Boston based law firm that bungled the agreement that may have given Frank sole ownership of the Dodgers, filed a preemptive law suit in Massachusetts State Court that would effectively bar Frank from suing the firm for malpractice. 

In the law suit, Bingham alleges that “any injury, loss or expense he [Frank McCourt] has sustained or will sustain were caused not by Bingham's conduct, but by his own widely publicized financial problems, huge withdrawals of cash from the Dodgers, and strained relations with Major League Baseball.  None of this is attributable to Bingham's work."

Of course, Frank may not have the cash to fund a defense!

Frank appears to be down and out in Holmby Hills and Chavez Ravine.  He is running out of cash.  His lenders do not trust him.  The Commissioner and the other owners do not trust him.  And most important, the fans do not trust the Bum.

The Boston Parking Lot Attendant is not running with the Big Dogs any more.  Rather, the Big Dogs are trying to chase his sorry ass out of town and out of Major League Baseball.

Let’s hope they are successful. 

(Jack Humphreville writes LA Watchdog for CityWatch He is the President of the DWP Advocacy Committee and the Ratepayer Advocate for the Greater Wilshire Neighborhood Council. Humphreville is the publisher of the Recycler -- www.recycler.com.  He can be reached at: lajack@gmail.com  )  -cw



CityWatch
Vol 9 Issue 31
Pub: Apr 19, 2011