LAT on the story ... excerpt:
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.
$433,000,000 in debt!
Further down the article it says:
$72 million operating revenue
$8.4 million net profit
$28 million debt service (38.8%)
$34 million revenue-sharing payments.
Hmmm ... how is the USA doing right now?
If these numbers are reliable ...
$2.1 trillion tax revenue
$200.5 billion interest on debt (9.5%)
The US Government isn't yet at a place where it is likely to default on its debts. The McCourt's in the eyes of the potential lenders are at risk of default.
Thus, somewhere between 9.5% and 38.8% debt servicing as percentage of revenue, lenders begin to get nervous.
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