Joined: Sun Feb 17, 2008 2:09 am Posts: 15850 Location: Somebody's stolen my avatar
First - good. I hate the Dodgers.
Second, I'm posting this cause I was completely unaware. Based on recent spending I'd assumed teh Dodgers were Yankees 2.0, a gonzo spending team over and above everyone else in the NL. I wasn't aware that they had a window and their MLB debt exception ends next year. (whatever that is. Really, I'm not sure what that is).
Joined: Sun Apr 27, 2008 8:01 am Posts: 25135 Location: Harlem
Not super familiar with this, but my interpretation is that MLB doesn't want any of its teams to go bankrupt so it forces them to keep debt at manageable levels, probably relative to overall earnings and assets. It sounds like the Dodgers seemingly bottomless pile of cash has actually been built on a foundation of borrowed money and that they haven't been paying down their debt as quickly as they need to be. MLB would have granted them a waiver when the team was first purchased, as it stands to reason that their debt would be relatively high to start, but that waiver can't last forever. Basically, they have to balance their books.
_________________ Baseball has a way of ripping your ❤️ out, stabbing it, putting it back in your chest, then healing itself just in time for Spring Training. - Thor
Joined: Sun Feb 17, 2008 2:09 am Posts: 15850 Location: Somebody's stolen my avatar
northway wrote:
Not super familiar with this, but my interpretation is that MLB doesn't want any of its teams to go bankrupt so it forces them to keep debt at manageable levels, probably relative to overall earnings and assets. It sounds like the Dodgers seemingly bottomless pile of cash has actually been built on a foundation of borrowed money and that they haven't been paying down their debt as quickly as they need to be. MLB would have granted them a waiver when the team was first purchased, as it stands to reason that their debt would be relatively high to start, but that waiver can't last forever. Basically, they have to balance their books.
That's about what I came up with. There were a few articles about this last November, the one I posted and a couple others, but that was the gist of it.
So, I don't think they're in any risk of running out of money, but with low interest rates these days, the debt may be higher than MLB allows, and that's coming due in 2017 (basically what you said).
Personally, I like having a person as an owner, not an investment group. An investment group feels so distant, but I'd still prefer an investment group to the Wilpons.
Joined: Sun Apr 27, 2008 8:01 am Posts: 25135 Location: Harlem
I don't know that I would call Guggenheim Partners a conglomerate. It's very much made up of individuals. It's not as if they have corporate owners.
_________________ Baseball has a way of ripping your ❤️ out, stabbing it, putting it back in your chest, then healing itself just in time for Spring Training. - Thor
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