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Wednesday, December 21, 2011
Debt of a salesman


The bid book designed to detail what potential Dodger owners are actually buying has been sent out, according to Bill Shaikin of the Times. Some details:
... The Dodgers generated about $240 million in revenue last season, according to the book. That figure would be essentially even with 2006 and down 17% from a record $289 million in 2008, according to records filed in Los Angeles Superior Court. The Dodgers' revenue has declined every year since then.

The Dodgers turned a profit of about $2 million last season, but before debt payments that almost assuredly turned that small profit into a double-digit loss. The Dodgers' profit before debt service dropped about $27 million from the 2010 season.

The Dodgers' debt exceeds $599 million, according to the U.S. Bankruptcy Court testimony of the investment banker leading the sale on behalf of McCourt, the outgoing owner.

The bid book also reminds prospective owners of an annual $14-million payment the Dodgers must provide as rent at Dodger Stadium to another McCourt entity not included in the sale and says that figure is scheduled to increase as soon as 2015.

Also, Forbes has more on the bid book revelations. Meanwhile, Dodger creditors are concerned about the potential liability in the Bryan Stow lawsuit against the franchise, writes Shaikin.