But if we ever needed a reason to not purchase anything with debt, here comes the financials from the Dodgers, via Bill Shaikin of the LA Times.
Since buying the Dodgers for $430 million six years ago, Frank McCourt has so heavily leveraged the team — $433 million in debt as of last year — that he has struggled to find additional financing.
The debt load has limited how the Dodgers can pay their players and could affect the team’s ability to sign talent.
McCourt was turned down at least three times — by Citibank, by a Chinese investment group and by a Southern California infomercial king — in trying to secure additional financing last year, according to documents filed in the divorce case between him and his estranged wife, Jamie.
Frank McCourt bought the team for $430 million in 2004, according to an approval memorandum from the commissioner’s office. Under McCourt ownership, the Dodgers’ revenue has nearly doubled — from $156 million in 2003 to $286 million last year, according to court documents.
Read the rest of it for yourself, it’s basically what we’ve all been waiting for since the start of this trial.