Monday, April 18, 2011

Fire Broke Baseball Owners

The McCourts are contesting everything, including this plaque.
Last week the LA Times reported that Dodgers owner Frank McCourt received a $30 million loan from Fox to meet payroll obligations, a move that means he's broke - and should be fired.

McCourt has been locked in a bitter divorce battle with his ex, Jamie, that makes any breakup you've ever had seem downright pleasant. A judge ruled that she is a part of owner of the team, which means McCourt's days as owner are numbered unless he has the cash to buy her out (if she's willing to sell to him) and this loan kind of makes it seem like he doesn't. McCourt has owned the team since 2004, and the Dodgers had been doing pretty well with him in charge (4 playoff appearances). But since the divorce proceedings began in 2009, the Dodgers have slashed payroll, stayed away from the free agent market and watched their record fall below .500 for the first time since 2005. This is obviously a team in decline, even if Frank somehow manages to keep running the organization.

Unfortunately for baseball, McCourt isn't the only owner in serious trouble. The Mets ownership group, chaired by Fred Wilpon, is being sued for $300 million by a trustee representing Bernie Madoff's victims. Wilpon is seeking a minority owner for the team in the hopes that it will raise about $200 million. Several prominent types, including Mark Cuban and Donald Trump, have already said they're not interested. The main challenge for Wilpon is finding someone willing to take a minority share. Even if Wilpon and company somehow pull off the miracle trifecta of successful defense in the Madoff lawsuit, finding a minority owner and returning the team to financial solvency, it would still be a loss for Mets fans. Wilpon bought into the Mets in 1980 and became principal owner in 2002. Since 2002, the Mets have made the playoffs just once despite a $150 million+ payroll and only had a winning record 4 times.

Bud Selig will tell you how financially healthy baseball is, and maybe he's being honest. But having two teams struggling in the two biggest media markets in the U.S. has the makings of disaster for the sport. Asking Selig to behave responsibly is like asking Congress to, well, behave responsibly, but there is precedent for baseball owners being forced to sell dating to the 1940s. Most recently, Marge Schott was forced to sell her interest in the Reds (in 1998) basically because she was an awful person. Selig would do the game and the fans of the Dodgers and Mets a massive favor if he forced McCourt and Wilpon to sell. Until he does, the HR Department will take matters into its own hands and fire any pro sports owner who is too broke to even make payroll.

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