More news of the recent and rather bizarre operation of the Dodgers continues to bleed out of a Los Angeles courtroom this week as Frank and Jamie McCourt wrangle over a divorce settlement.
(A World Series ring will do that)
Bill Shaikin and E. Scott Reckard of the LOS ANGELES TIMES report today that in a deposition for the couple’s legal divorce proceeding, Frank McCourt revealed that last year he solicited $ 25 million in cash from the founder of a company “best known for marketing the Proactiv acne treatment.”
McCourt said that in exchange for the money from Guthy-Renker founder Bill Guthy, McCourt offered the acne treatment marketing titan “a Championship Ring (when we win World Series).”
As part of the deal, if McCourt was unable to pay Guthy back the $ 25 million in five years, the loan would convert into a small ownership stake in the team (2.77%). The ownership stake would be based on a $ 900 million valuation of the team at the time of conversion – which McCourt admitted was a “very high” estimate.
McCourt said that Guthy turned down the offer, saying that Guthy said he preferred “less risky investments.”
When he bought the team with no money down in 2004, McCourt did a similar deal with three other investors. One has since been repaid and the other two loans have not yet matured.
The Times reports Jason Moskowitz, a Palos Verdes entrepreneur and chief executive of SkyBridge Private Air, was one of those three investors.
On May 18, Jon Weinbach of AOL FANHOUSE revealed another of the three investors:
FanHouse has also learned that the Dodgers’ ownership includes two limited partners who provided loans to help the McCourts finalize their purchase of the club in 2004, according to people familiar with the matter. One of the limited partners is Franklin Weigold, a long-time executive with Analog Devices, Inc., a Norwood, Mass.-based maker of electronic equipment. Weigold lives part of the year in Los Angeles and was also part of the McCourts’ failed bid to purchase the Boston Red Sox in 2001.
So why did McCourt go to Guthy to obtain $ 25 million in cash in 2009 in the first place?
The Times reports the move was in response to the shaky financial state of the Dodgers: (more…)
Share This
SPORTSbyBROOKS
