Major League Baseball Takes Over Operations of Los Angeles Dodgers

MLB Commissioner Bud Selig has "deep concerns"  over the finances and operations of the Los Angeles Dodgers.

Developing...

For an earlier take on the fight between Dodger owner Frank McCourt and his wife, Jamie (They are in divorce proceedings) see my post, The Los Angeles Dodgers, The Pillsbury Doughboy and Money.

UPDATE: BizOfBaseball.com has a report of the declining attendance at Dodger Stadium:

According to court documents from the divorce, the Dodgers lost 14% of their season-ticket base in two years, dropping from 26,941 in 2007 to 23,300 in 2009. In looking at estimates, the Dodgers could be losing as many 10,000 full season equivalents since 2007.

That was 2007 to 2009, and early numbers from this season point to the overall paid attendance dropping, as well.

Be it the marketing loss of Manny Ramirez, or missing the playoffs last year with a sub-.500 record after going to the NLCS in the prior two seasons, the Dodgers are seeing some of their worst attendance in years. The club drew 36,282 for Friday’s 11-2 loss to the Cardinals, which according to Bill Shaikin of the LA Times was the lowest attended Friday night home game since 6/6/03 when the Dodgers played the White Sox and Kaz Ishii beat Mark Buehrle. The rest of the weekend did not fare well, either. On Saturday 31,614 in paid attendance was counted, the lowest attended Saturday home game since 9/7/02 vs Astros. Finally, Sunday saw just 27,439, or 49% of capacity. Through 8 games the Dodgers are averaging 40,270, a healthy number (now second in the league behind the Phillies), until you realize that that is just 72 percent of Dodger Stadium’s 56,000 seating capacity (last season, the Dodgers averaged 43,979, down from 46,440 in 2009 and 46,056 in 2008). By capacity, the Dodgers currently rank 11th in the league just ahead of the NY Mets.

And season tickets could be taking a hit, as well.

Based on preseason attendance of 16,732 on 3/30/11 one can only speculate there FSE count has fallen to below 18,000 FSE's or a loss of at least 9,000 FSE's since 2007. This ticket loss is sure to be felt in the Dodgers' pockets to the tune of $25 million based on recent Team Marketing Report data plus any ancillary income associated with these tickets...And on Saturday, there was more alarming news.

According to the LA Times, Frank McCourt has secured a $30 million loan from FOX to meet payroll obligations, which according to the report will cover expenses into next month. It marks the second loan since the end of last season that the Dodgers have had to take on. What’s more disturbing is the loan is not to the Dodgers, but rather McCourt directly.

UPDATE 2 Bud Selig's full statement:

Pursuant to my authority as Commissioner, I informed Los Angeles Dodgers owner Frank McCourt today that I will appoint a representative to oversee all aspects of the business and the day-to-day operations of the Club. I have taken this action because of my deep concerns regarding the finances and operations of the Dodgers and to protect the best interests of the Club, its great fans and all of Major League Baseball. My office will continue its thorough investigation into the operations and finances of the Dodgers and related entities during the period of Mr. McCourt's ownership. I will announce the name of my representative in the next several days. The Dodgers have been one of the most prestigious franchises in all of sports, and we owe it to their legion of loyal fans to ensure that this club is being operated properly now and will be guided appropriately in the future.