Did you hear that Frank and Jamie have finalized their divorce? It’s a question that can start a dinner table conversation across America. In thousands of cases the conversation impacts only the family and friends of the parties involved. However, when the parties are Frank and Jamie McCort, and among their assets is the Los Angeles Dodgers, it is national news and has a significant bearing on the value of the asset. In January 2004, Frank McCort purchased controlling interest in the Dodgers from News Corp. for $430 million. He named his wife, Jamie, President of the organization in August 2005 and as Chief Executive Officer in March 2009. On October 19, 2009 the McCorts announced they were separating. Eight days later, Frank fired Jamie as CEO. Five days after that she filed for divorce.
For the past two years as the highly publicized proceeding played itself out in court; the value of the Dodgers franchise and future ownership of the organization teetered on the brink. In June 2010 as the courts were determining final ownership of the franchise, the Commissioner of Major League Baseball stepped in and assumed day-to-day operations of the team. It is reported the divorce settlement will likely set-up a showdown between Frank McCort who wants to retain ownership of the team and Major League Baseball who wants the franchise sold to new owners. Whether it is the divorce of a company’s top executives, a lawsuit, an employee relations issue or the recall of a company’s product, it is critical to maintain the focus of the company on business operations despite the distraction of outside events. Experts estimate crisis costs small businesses $3,000-to-$5,000 per day in lost productivity, mid-size companies $25,000 per day in productivity and large organizations can lose $100,000 or more per day millions in some cases!
But, how do you plan? Pre-crisis planning and resiliency training of top executives enables them to present a clear and consistent message to clients, employees and the public during a time of crisis. For more information call a Fallston Group representative at 410.420.2001. Send email inquiries to email@example.com.