How do the Dodgers carry an unlimited payroll?
Filings uncovered by @NickNemo17 show roughly $1.45 billion in debt for American Media Productions, the entity behind SportsNet LA and the Dodgers' 25-year, $8.35 billion Charter deal, sitting on the balance sheets of 5 life insurance companies tied to or controlled by the Dodgers' own ownership group.
i.e. the Dodgers get a sweetheart deal on their TV rights from a media company their owners co-own, financed by insurance companies those same owners control.
Because ownership sits on both sides, as borrower and lender, the setup functions as a closed loop:
-When RSNs hit turbulence, banks enforce covenants or force restructuring. Here the lenders are insurers the owners manage, so the capital stays patient and cash flow to the team never gets choked.
-MLB taxes net local revenue at 34% but allows deductions for debt service and interest tied to running the network. Carrying $1.45 billion in media debt on AMP's balance sheet generates interest expense that shrinks reportable net TV income and the resulting revenue-sharing bill.
Then there's the payroll itself. Over $1 billion of it is deferred, owed to 9 players through 2047. Pushing that cash out frees up money today, some of which is going toward servicing that same debt, and kicks the actual bill to a stretch of decades many of today's owners won't be around for.
LA built a (seemingly illegal) structure that captures its own interest yield, shelters TV income from league revenue sharing, and helps fund payroll dominance in the process.
Pete Crow-Armstrong's NL MVP odds just went from -115 to -155 in the last couple of hours at DraftKings.
His "Heisman moment" and the national buzz are likely playing a role there.
“if PCA gets hot in the playoffs”
in the playoffs he’s 5-27 with 0 XBH and a 44% strikeout rate for a .399 OPS
bro’s a bigger playoff dropper than the Milwaukee Brewers and that’s saying something
@BocaSportsBets@DadSighs it's really not subjective that he's having one of the best centerfield defensive seasons ever and is crushing ohtani as a baserunner this year as well
I've seen lots of comparisons to Judge vs. Raleigh last year, which is funny because Judge had more WAR than Raleigh. Does that make PCA the equivalent to Judge in this analogy?
The Ohtani vs Pee Cee Aye “MVP race” reminds me of last years Aaron Judge vs Cal Raleigh
1. Its obvious who the better player is
2. Voter fatigue is the driving factor
3. One is peaking and will fall off next season
It’s quite simple.
Shohei Ohtani is your NL MVP.
Not saying he's doing this here, but it's an equally bad narrative to act like Shohei's 14 starts were "Cy Young" level when his metrics were nowhere near the top contenders in either league. A lot of Dodgers fans and media glazers are doing this
“If Pete does it, I’ll tip my cap”
@Ecnerwal23 & @Sean_W_Anderson react to Pete Crow-Armstrong’s walk-off HR last night and the decision to pitch to him.