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Apr
16

Dodgers have to borrow money to pay everyday bills

By Ryan

The title kind of says it all, but things continue to get worse for the Dodgers and their fans. Bill Shaikin of the LA Times reports that the beloved Frank McCourt recently took a loan from FOX of $30mm to cover the Dodgers’ payroll obligations as well as expenses (extra police, hot dogs you know those kind of things) into next month.

Selig recently stopped McCourt from borrowing $200 million from FOX which Tony Jackson of ESPNLosAngeles.com says would put more pressure on Frank McCourt to sell the team.  McCourt wanted to use the Dodgers’ cable television rights as collateral, extending the team’s current contract with FOX by as many as four years if he did not repay the loan.

Steve Sugerman, the spokesman for McCourt, declined to confirm the deal or discuss its terms. “The team is meeting its financial obligations as it always has,” Sugerman said, “and will continue to do so.”

To make matters worse, Frank was sued by the Boston law firm that drafted the since-invalidated property agreement that McCourt had relied upon to establish his sole ownership of the Dodgers. No further details are known at this time of the lawsuit.

So why would FOX continue to loan a man money who they know won’t pay them back? They are banking on McCourt not paying them back so that he will be forced to extend the current TV deal the Dodgers have with FOX. FOX would like McCourt to sign a new TV deal in the neighborhood of $3 billion for twenty-years. FOX is pushing McCourt and willing to loan him money to sign a new TV deal as they recently lost the LA Lakers to Time Warner.

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