Monday, February 22, 2010

Frank McCourt is a Donkey


Frank McCourt is a great businessman.  Unfortunately he is more interested in making money than running a ballclub.  McCourt has laid out his plan over then next 8 years.  His plan will make him an even wealthier man.  I interpret the following information as a way for him to settle his divorce, and coming out richer than before.

In the LA Times today there was an article by Bill Shaikin, and here is my summary:

The article starts off with this, "The Dodgers could seek to keep their player payroll below last year's level through 2018 while the average ticket price and club revenue could nearly double, according to confidential financial documents included in a court filing last week."

Translation: McCourt will be rolling in profits and pocketing the money.

Evidence:  "[McCourt] anticipates a significant rise in club revenue, from $295 million in 2008 to $529 million in 2018, and in the average ticket price, from $29.40 in 2007 to $53.50 in 2018."

The "rule of thumb" on clubs spending their revenue is to spend 50% of revenue on player compensation.  Here are the Dodgers' numbers:  2007 = 46%, 2008 = 42%, 2013 projection = 25%!!!

Now I'm all for making money.  By no means does McCourt have to spend 50% no matter what.  My point is that the Dodgers should not claim they can't afford to pay for top free agents or trade for guys that have a big salary.  They have the money.  Next year Manny's $20 million come off the books, and my guess is it will go towards the divorce settlement.

It's time for McCourt to be committed financially to putting out a team that can compete for a World Series.  He claims that he is committed...but his actions scream something to the contrary.

You are ultimately judged by your actions.'s time to step up or step down.

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