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As has been reported elsewhere by Yahoo!'s Tim Brown and the Times' Bill Shaikin, and according to a high-ranking person close to the situation, Frank and Jamie McCourt will take their case to mediation Friday morning at 9:30, in front of Judge Peter Lichtman. This represents a meaningful opportunity for the McCourts to keep the fate of the Dodgers from the uncertainty of the judicial process. The mediation's timing is appropriate, as all relevant issues are expected to be on the table by the time Larry Silverstein concludes his testimony, due tomorrow.
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I understand that my Twitter feed was interrupted for some folks today, particularly unregistered users who tried to follow at www.twitter.com/dodgerdivorce. I hope it works better tomorrow. And, for those who don't follow me on Twitter or experienced an issue with the feed, reactions to today's events will be posted tomorrow morning, along with a preview of day eight.
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Tuesday, September 21, 2010
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You know Josh, when I saw Frank laughing and kibbitzing with his attorneys after lunch, I absolutely had the feeling taking the subway home that we would be headed in this direction. I wish I had written these words before the mediation announcement. I also can't help but feel that the Silverstein testimony of today may have helped to lubricate these developments.
ReplyDeleteHowever, I still do not see how he can afford to run this team. Maybe he already has a FOX TV extension in place, or perhaps a sale is in the works as we speak. There is certainly no guarantee that mediation will be successful.
Remarkable turn of events. Not unexpected, however.
P.S. Is mediation open to the public, or completely private to the parties and their counsel?
ReplyDeletePrivate and confidential.
ReplyDeleteThe McCourts know they need try to settle their case, because Jamie is overproving her case. She has proven to me that she and Frank have operated the Dodgers like a Ponzi scheme, where they sucked the franchise dry and put the money into property deals that were designed to protect against creditors.
ReplyDeleteThere is bad faith all around on both Jamie's and Frank's part. That's why neither wants to admit they remember anything surrounding any of the deals.
The right solution is to find all assets and liabilities to be community property, which would make it easier for creditors to require the McCourts to sell their assets, starting with the most valuable, i.e. the Dodgers.
I thought Jamie had a very uphill battle to prove her case when this was starting, but man, she sure proved more than she intended. As I said at the top, no wonder the McCourts are running into mediation.
Hmmm. I guess you don't have time to tell us what happened today? Your twitter feed got frozen during the day and only updated a few hours ago. It's got some revelations, but it's hard to tell what exactly happened just from that.
ReplyDeleteIn response to Mitchell:
ReplyDeleteThe McCourts were hardly operated a Ponzi Scheme. A Ponzi scheme needs investors, The McCourt had very minor investors, who they could pay back.
The McCourts' background is commercial real estate and property development. Their actions and behavior were very similar to property developers, they are leverage to the hilt, they live off the loans until the development is completed, and pray that rents and leases pay off their loans. It is very much a wheeling dealing business. Banks and Real Estate Developers pretty much match the definition of a co-dependent relationship.
How the McCourts bought a huge amount of properties, is more how they invest their assets..
Any money taken out of the Dodger and put into residential real estate by the McCourts, wouldn't protect those loans from creditors, given their are laws clearly stating this is illegal, and is looked upon as borderline fraud, if the McCourts declared bankruptcy.
I can't wait to see what happens after all this goes down. How can people who have, or make, this kind of money pay no federal income taxes?
ReplyDelete