The news just keeps getting worse for Frank McCourt and his bid to keep control of the Los Angeles Dodgers.
Bill Shaikin of the Los Angeles Times is reporting that the Dodgers do not have the necessary cash to meet payroll through the month of May.
In April, McCourt received a $30 million loan from Fox to keep things afloat, but there will most likely be no such rescue this month.
However if the Dodgers cannot meet the May payroll, it may be a good thing for those who want to see Frank McCourt out as owner of the Dodgers—sooner than later.
As Shaikin said in his story:
"If McCourt were to fail to meet payroll, the league would cover the expenses and would have the option to seize the Dodgers from him, according to one of the people familiar with the situation."
I think Commissioner Bud Selig is just looking for an excuse to take the Dodgers from McCourt, and the Dodgers inability to meet payroll would be just the ticket for Selig.
Why would Major League Baseball seizing the Dodgers from Frank McCourt be a good thing?
Well it would expedite the sale of the Dodgers to someone who will run the Dodgers in a way that would be good for the team, the league, the fans and the city of Los Angeles.
Of course McCourt believes MLB has already taken full control of the Dodgers.
McCourt believes that the Dodgers' financial difficulties would be a non-issue if Selig would approve the proposed $3 billion television contract with Fox that McCourt is seeking.
The television contract with Fox would include an upfront payment of $285 million, which according to McCourt would solve the Dodgers' current cash flow problems.
I think it will be interesting to see how the May payroll issue unfolds. If McCourt cannot come up with the necessary cash will MLB grasp the Dodgers from McCourt?
I think they will. Of course Frank McCourt will most likely take MLB to court if they do, and who knows what the courts would decide—and how long it would take them to do it.
We will have to watch and see what happens, but needless to say It will be an interesting few weeks for the Dodgers and their fans.
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