Hot dog! A $50m contest

As Major League Baseball owners prepare to vote next week on Frank H. McCourt Jr.'s $430 million bid for the Los Angeles Dodgers baseball team, McCourt is already looking forward to a hot dog deal that could be worth $50 million.

McCourt has held informal talks with various concession companies about food and souvenirs sold at Dodger Stadium. Two major Dodger Stadium concessions contracts expire after this coming baseball season.

"We have been aggressive in pursuing Frank McCourt's business," said Charles Jacobs, executive vice president of Delaware North Cos.'s Boston Bruins and FleetCenter. "We feel it would be a flagship account for us to hold under the Sportservice banner."

Concessions companies like Sportservice, controlled by Delaware North Cos. of Buffalo, owner of the FleetCenter and the Boston Bruins, may have to put up as much as $50 million to sell hot dogs, beer, and banners, as well as fancier fare, at Dodger Stadium, according to executives from two concession companies in the race.

The elbowing has begun between Aramark Corp. of Philadelphia, which sells general concessions to Dodgers fans, and other companies for a contract. And a large payment from the winner to McCourt to lock in business over the next 10 years or so could reduce the debt he is taking on to buy the team -- and possibly keep him from having to take on equity partners.

Dodger Dogs, LA's version of Fenway Franks, are available at the stadium, but that's not all. Fans also can take their choice from an array of fare including Domino's Pizza, Carl's Jr. hamburgers, Krispy Kreme doughnuts, Wetzel's Pretzels, and Gordon Biersch brews.

And there's finer cuisine in the luxury boxes. Levy Restaurants of Chicago, a major player in the stadium premium-dining industry, offers spicy tuna tartare and seared lamb rack chinois to fans.

"We will be very aggressive in our bidding," Jacobs said. Representatives of McCourt's company and Delaware North have met already. "We've had preliminary discussions and we would love to have it," Jacobs said. "We have a good relationship with Mr. McCourt and would love to expand it." McCourt declined to comment on the team sale or concessions deal, citing Major League Baseball rules. Representatives of Major League Baseball also declined to comment.

Another big player with roots in the Boston area who is expected to want to compete for business in the baseball stadium is Joseph J. O'Donnell, owner of Boston Concessions Group Inc., based in Cambridge. O'Donnell declined to comment.

Both McCourt and O'Donnell were unsuccessful bidders for the Boston Red Sox in 2001.

A spokeswoman for Aramark, Kate Shields, said the firm wants to keep its business at Dodger Stadium and expand it. "We're absolutely interested in continuing our relationship with them," she said. "We'd like to do any work we can with the Dodgers."

An executive of another concessions company expected to pursue the McCourt business, who asked not to be named, said that, like other baseball owners, McCourt may ask for several years' expected revenues up front -- in essence a loan that would be paid back over the life of a contract of 10 or more years.

Executives from two concessions firms estimated that $40 million to $50 million would not be an unlikely request. Depending on how the specifically the deal was structured, the money could be used to improve the public concessions areas at the ballpark, to upgrade the food preparation facilities, or for some combination of the two. Or it could go into the pocket of the owner.

McCourt, according to Boston real estate executives, is borrowing money not only against the team but against his 26 acres in South Boston, valued at between $100 million and $400 million, to buy the Dodgers and about 300 acres of land.

The deal includes land and assests in Florida and the Dominican Republic held by media giant News Corp., the Dodger's current owner.

Much of the money for the transaction is coming as a loan from Bank of America. News Corp., which is selling the money-losing team and land but retaining the broadcast rights, is providing financing for another chunk of the purchase. Under a complex set of rules set by Major League Baseball regarding the ratio of debt to equity required of new owners, McCourt must cover approximately half of the value of the team with his own funds -- not with borrowed money for which the team serves as collateral.

Baseball industry consultants interviewed over the last several days said McCourt's bid could be on track to be approved by three-quarters of the team owners, as is required, at meetings Wednesday and Thursday in Phoenix.

"I don't believe they would have gone as far forward as they have at this point, and sent out materials to the ownership, unless the leadership in the commissioner's office was comfortable with it," said Marc S. Ganis, president of Sportscorp. Ltd. in Chicago.

MLB commissioner Bud Selig has enormous latitude in applying the rules, consultants said.

"If he didn't want McCourt to own the Dodgers, he would assert the rule," said Andrew Zimbalist, author of "Baseball and Billions: A Probing Look Inside the Big Business of Our National Pastime."

"The rule is implemented at the discretion of Selig -- on a case by case basis or whether to apply it at all."

Added Zimbalist: "Any notion that McCourt can't do this because he's borrowing too much from Fox is not right. Selig can do what he wants."

Thomas C. Palmer Jr. can be reached at tpalmer@globe.com.