Dodgers may run out of cash by end of May

That's according to the WSJ, citing two sources familiar with the team's financial problems. This could get dicey considering that Baseball Commissioner Bud Selig won't sign off on owner Frank McCourt's $3-billion deal with Fox until an investigation into the Dodgers' financial situation is complete. McCourt says he needs the Fox money to keep going. If the team faces a cash crunch, however, Selig might be forced to somehow intervene. Regardless of how that short-term problem gets resolved, the Journal quotes sources as saying that the franchise will be insolvent by July (insolvency being the inability to pay off debts as they come due). "It's a complicated web of companies, and we have to follow one dollar in the door and out the door," said Tom Schieffer, who was brought in by Selig to oversee the organization (he wouldn't comment on the financial situation). "We have to figure out what's going on the best we can and get to facts everybody agrees on. Then the options will define themselves." And what about McCourt? He was on radio this afternoon, admitting to past mistakes but vowing to remain Dodger owner.

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Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
Mark Lacter, business writer and editor was 59
The multi-talented Mark Lacter
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