Jeffrey Loria goes out in style

If you thought baseball got rid of Jeffrey Loria after he sold the Miami Marlins to the ownership group led by Derek Jeter, you are wrong. With a reputation for being a haggler and whiner, he has one final trick on his sleeve.

When Miami Dade County and the city of Miami signed a stadium deal with Loria, there was a clause that said both governments would get 5% of the amount that Loria would get if he would sell the club. This in exchange for the $480 + million the city of Miami and Miami Dade County spent for the construction of the ballpark.  In this case, Loria has to pay $60 million. But the cunning fox claims a $140 million paper loss on the deal, citing deductions allowed in the original deal.  Deadspin.com said it in a striking way: “True scumbag Jeffrey Loria treated the good people of Miami to one final insult on his way out of town.” According to the lawyers of Miami Dade County, this is nonsense and thus they are filing a lawsuit against Jeffrey Loria.

You can wonder how the sale of a team for $1.2 billion can lead to a loss of $140 million.
Miami Dade County and the city of Miami paid $376 million and $132.5 million respectively for the construction of the stadium, leaving the smallest part of $125 million for Loria. With the smallest part of the construction costs, Loria managed to get a deal that brought him all the income that came from parking, sales of food and beverage.

The lawsuit claims Loria both badly overstated the value of the team and overstated his debt and cash contributions to the franchise, and Miami Dade County demands “proof of the significant payouts and loans claimed by Loria.” The suit also cites leaked Marlins financial data published by Deadspin in 2010, showing that Loria used hazy profit calculations in 2008 and 2009 in order to “prove” his poverty.

Anyhow, Miami Dade County wants an injunction to have more time to respond to Loria’s financial claims. The hearing is set for today 10.00 AM Eastern Time.