News for 6/27/11
You should be following CNBC Sports Business reporter Darren Rovell on Twitter just for the knowledge drops. Today you get the bonus of all bonuses: Rovell ripped his pants going through an airport security checkpoint and is dealing with the embarrassment.
Unlike Rovell, Frank McCourt apparently feels no embarrassment. He had the Dodgers file for Chapter 11 bankruptcy in a Delaware court today, in what could be interpreted as one last-ditch attempt to maintain control over the team. $150 million in additional short-term financing may be coming from a JP Morgan-run hedge fund, with a whopping 10% interest rate (though it’s not a worse deal than what the Mets are getting). An initial bankruptcy hearing will be held tomorrow. Both Jamie McCourt and Bud Selig have expressed disapproval with the bankruptcy filing. For his part, Selig is said to be offering a better interim financing deal than what JP Morgan is giving Frank McCourt. Selig’s strategy has been for some time to do nothing and give McCourt enough rope to hang himself. By allowing McCourt to perform this maneuver, Selig has given his combatant just a little more rope.
Governor Jerry Brown and leading Democrats in the California Legislature gave a brief statement in support of a new budget which, through a series of cuts, cover up to 75% of the remaining deficit for the upcoming fiscal year. The rest is a $5 billion can that Brown is kicking down the road. Brown is now aiming for a November 2012 election date for tax extensions he was gunning for this year. The press conference was incredibly light on details. Naturally, Republicans want nothing to do with the budget plan. Oh, and then there’s this from Sacramento Bee Capitol reporter Kevin Yamamura:
Already-approved redevelopment bills will go to Guv as part of new Dem #cabudget.
The new budget has been designed to pass without GOP votes, just as the previous one did before Brown vetoed it. Redevelopment interests are looking to file lawsuits as early as this week.
Oakland City Council is expected to approve the sale of the Henry J. Kaiser Convention Center to the city’s redevelopment agency for $28.3 million, in an effort to bridge the city’s budget gap. Not known is exactly how much of the sale proceeds will be used for the budget, with all three budget proposals using different amounts.
In radio news, Lew Wolff will be on The Chris Townsend Show Wednesday. 95.7 also hired former 49er cornerback Eric Davis to start at the station on August 1, at which point we can only hope that the NFL lockout is over and Davis can talk training camps. I bet they’ll figure out a way to team Davis up with Rick Tittle, who will do the 1-3 slot on Wednesday as part of a cavalcade of hosts, including CSN’s Jim Kozimor and Brodie Brazil today, Dave Benz and Scott Reiss later in the week.