The Dodgers are cheating financially

[MadScientist]

The TLDR - Dodgers massive local TV contract is funded by insurance companies run by the Dodgers owners, and they also put a massive debt on the books of that media company to avoid revenue sharing.

Now what will MLB do about this?

[Jim French Stepstool]

47 minutes ago, MadScientist said:

The TLDR - Dodgers massive local TV contract is funded by insurance companies run by the Dodgers owners, and they also put a massive debt on the books of that media company to avoid revenue sharing.

Now what will MLB do about this?

I'll stick my neck out & say....................nuttin.

[Fear The Chorizo]

48 minutes ago, MadScientist said:

The TLDR - Dodgers massive local TV contract is funded by insurance companies run by the Dodgers owners, and they also put a massive debt on the books of that media company to avoid revenue sharing.

Now what will MLB do about this?

Blame it on Ohtani's interpreter and act like it's all good otherwise

[owbc]

It's very good that this came out prior to the offseason CBA negotiations. 

If I understand it right, there are two separate-but-related pieces to this.

(a) As reported above, the discovery that the Dodgers are manipulating revenue sharing by deducting the media debt off local revenue. That is obvious revenue sharing manipulation that needs to be addressed. Will it be? I don't know. 

(b) The illegal debt servicing being uncovered, forcing Walter to liquidate assets. The fact that he attempted to buy out his sweetheart TV deal suggests that the situation is very, very serious. 

I'm not sure how this is all going to play out but this could be the beginning of the end of the dynasty. 

Is Skubal going to sign long term with the Dodgers? Two weeks ago we all assumed they were the favorite. Now? There's no way Walter is going to be able to finance another long term contract with all this going on.

Fun X-factor -- Ohtani has a clause that he can opt out if the Dodgers ownership changes hands. I highly doubt that he would, but considering that he gets most of his income through off-field sponsorships, I could see him wanting to jump the sinking ship if things get really bad...

[cragi]

but why cant brewers management just be more like the dodgers and "go for it"? its so simple 

[Turning2]

How do you rectify it... for starters, MLB should strip them of the last two WS Championships if the alleged cheating and manipulation proves to be true. Of course, they won't do that, but it sure would be satisfying. 

[Jim French Stepstool]

1 hour ago, owbc said:

I'm not sure how this is all going to play out but this could be the beginning of the end of the dynasty. 

Is Skubal going to sign long term with the Dodgers? Two weeks ago we all assumed they were the favorite. Now? There's no way Walter is going to be able to finance another long term contract with all this going on.

Fun X-factor -- Ohtani has a clause that he can opt out if the Dodgers ownership changes hands. I highly doubt that he would, but considering that he gets most of his income through off-field sponsorships, I could see him wanting to jump the sinking ship if things get really bad...

It's nice to see a potentially huge off-season issue combined with the age of their current roster. I documented it in another thread---some of their key players have a lot of hair on 'em.

[Jim French Stepstool]

10 minutes ago, Turning2 said:

How do you rectify it... for startes, MLB should strip them of the last to WS Championships if the alleged cheating and manipulation proves to be true. Of course, they won't do that, but it sure would be satisfying. 

Take away their 1st round pick next year---THAT'LL show 'em.

I hate to be cynical about it, but this is one of the "helmet schools" of MLB, to borrow a college FB term. That, and the fact we're a 'slap on the wrist' society........OTOH the obvious financial edge they've enjoyed for so long, the market disparity-----the pressure to do something substantial might actually lead to something meaningful. 

Might.

[torts]

The fact the owner sold the lakers after 14 months and is getting a lot of heat from the feds is also not a good look

Ohtani is going to be a Yankee in 2 years isn't he?

https://www.nytimes.com/athletic/7522366/2026/08/18/mark-walter-delaware-life-filings-dodgers/?source=user_shared_article&unlocked_article_code=1.6lA.60PI.uf9No9mkk56B&smid=ta-android-share

[wallus]

Yep, give the Brewers the trophy from last season

[GAME05]

I'm of the mind MLB loves the Dodgers powerhouse for ratings purposes, and MLBPA loves that they set the bar for salaries. That maybe it's only fans who actually care, and it hasn't mattered what we think for decades now.

Pay a fine for the lost revenue sharing and carry on?

[owbc]

4 hours ago, Jim French Stepstool said:

Take away their 1st round pick next year---THAT'LL show 'em.

I hate to be cynical about it, but this is one of the "helmet schools" of MLB, to borrow a college FB term. That, and the fact we're a 'slap on the wrist' society........OTOH the obvious financial edge they've enjoyed for so long, the market disparity-----the pressure to do something substantial might actually lead to something meaningful. 

Might.

I wonder what the other owners think of this. 

The Dodgers have been a useful data point in favor of a salary cap, but that argument is probably going to die if it turns out they used fraud to pay for a big chunk of their contracts. 

And on top of it they were basically stealing money that should have gone to other teams via revenue sharing.

For now we have to let the investigation play out but I suspect the Dodgers are going to have a new owner when this is over. 

[Jim French Stepstool]

14 minutes ago, owbc said:

I wonder what the other owners think of this. 

The Dodgers have been a useful data point in favor of a salary cap, but that argument is probably going to die if it turns out they used fraud to pay for a big chunk of their contracts. 

And on top of it they were basically stealing money that should have gone to other teams via revenue sharing.

For now we have to let the investigation play out but I suspect the Dodgers are going to have a new owner when this is over. 

Valid points. But a discrepancy has existed for awhile, fraud or no fraud.

I WOULD like to know what the rev sharing #s would've been to some of the 'have nots' had this not occurred.

As to a new owner yeah, it's hard to imagine moving forward without that happening.

[cragi]

6 hours ago, owbc said:

 

The Dodgers have been a useful data point in favor of a salary cap, but that argument is probably going to die if it turns out they used fraud to pay for a big chunk of their contracts. 

And on top of it they were basically stealing money that should have gone to other teams via revenue sharing.

A salary cap would reduce the incentive for this kind of scam because a massive self funded TV deal would just get split out to other teams, not go to payroll.

MLB has quite a mess on its hands. They're going to have to figure out what to do with this all star roster built on a mound of monopoly money as fans realze it was all a big sham while their teams struggle to compete in a rigged system. 

I feel the dodgers need to be broken up somehow to save face

[adambr2]

Just to be clear, Manfred is unlikely to strip any championships no matter what is found. He had the chance to set that precedent with the 2017 Astros and chose not to. 

[SF70]

Couldn’t happen to a more deserving franchise and fanbase. 

God I hate that team.

[tmwiese55]

FWIW, I hadn't heard of this until this thread.  I just went to CBS and ESPN websites and its not mentioned, even when clicking specifically into MLB, not just the main site.  

[Gump]

What will the MLB do about their cash cow team? You ready for the answer?…………. Not a thing. 

[MadScientist]

30 minutes ago, tmwiese55 said:

FWIW, I hadn't heard of this until this thread.  I just went to CBS and ESPN websites and its not mentioned, even when clicking specifically into MLB, not just the main site.  

It's disappointing that those sites are ignoring it.  It is being covered by the NY Times, LA Times, and Forbes.

[Jopal78]

15 hours ago, Jim French Stepstool said:

It's nice to see a potentially huge off-season issue combined with the age of their current roster. I documented it in another thread---some of their key players have a lot of hair on 'em.

Remember back in 2017 when the Dodgers traded Scott Kazmir $17M), Adrian Gonzalez ($22M), Brandon McCarthy ($11.5M) Charlie Culbertson and cash to the Braves for just Matt Kemp?

The Dodgers can save tens of millions by doing the same thing again; simply give away players they don’t need anymore, while taking a bad contract in return or paying down the guarantees. 

[Jopal78]

57 minutes ago, tmwiese55 said:

FWIW, I hadn't heard of this until this thread.  I just went to CBS and ESPN websites and its not mentioned, even when clicking specifically into MLB, not just the main site.  

Is it really a relevant baseball story? It has virtually nothing to do with the Dodgers, other than Mark Walter is their majority share holder.
 

Rather, the situation involves a note-worthy billionaire with vast diversified holdings and companies under government investigation for potentially violating Federal insurance regulatory laws by lending large sums of money to other businesses he owns from insurance companies he also owns at terms that are below market rate. Those loans theoretically could put the policy holders of those insurance companies at financial risk. 

[tmwiese55]

20 minutes ago, Jopal78 said:

Is it really a relevant baseball story? It has virtually nothing to do with the Dodgers, other than Mark Walter is their majority share holder.
 

Rather, the situation involves a note-worthy billionaire with vast diversified holdings and companies under government investigation for potentially violating Federal insurance regulatory laws by lending large sums of money to other businesses he owns from insurance companies he also owns at terms that are below market rate. Those loans theoretically could put the policy holders of those insurance companies at financial risk. 

That the Dodgers cheated the payroll rules and system would for sure be a baseball story. Its akin to the Clippers/kawhi stuff that has been the news for months.  Hopefully outlets like that are just waiting for things to be vetted by better journalists before pushing it, but restrain like that is very rare in media these days. 

[GAME05]

My immediate assumption is that Mark Walter's TWG Group owns large shares of both Disney and Paramount. 

[MoreTrife]

1 hour ago, GAME05 said:

My immediate assumption is that Mark Walter's TWG Group owns large shares of both Disney and Paramount. 

God the world is so complex these days it's maddening. No accountability. Everything too fractured and complex.