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Jamie McCourt testifies Dodgers purchase not risky

September 20, 2010 | 11:23 am

Jamie McCourt testified Monday she did not consider the purchase of the Dodgers a particularly risky venture because the team could be sold if its financial losses could not be reversed.

"We felt confident we would have positive cash flow in two or three years," she said. "If something did not turn out exactly right, we could always sell. Historically, teams don't lose money when they sell."

Her statements were made Monday in her divorce trial from Frank McCourt. At the center of the dispute is ownership of the Los Angeles Dodgers.

She said she "frequently" discussed that possibility before she and Frank McCourt acquired the Dodgers in 2004 in a highly leveraged purchase.

Frank McCourt has testified Jamie McCourt asked for an agreement to protect the couple's homes from any possible Dodgers financial losses by putting them in her name and the team in his.

The lawyer for Frank McCourt grilled her on her contention that the court should not uphold the agreement that Frank McCourt says provides him with sole ownership of the Dodgers.

Frank McCourt's attorney, Steve Susman, recited Jamie McCourt's credentials as a practicing lawyer before asking her: "As a lawyer, do you believe people should be bound by what they sign?"

She replied: "I believe it as a lawyer and as a normal person."

Under questioning from her attorney, David Boies, Jamie McCourt testified she had not read the agreement because she understood it would simply codify under California law what the McCourts practiced in Massachusetts -- keeping the homes in her name to protect them from creditors.

"I trusted Larry," she said, referring to Larry Silverstein, the lawyer who drafted the agreement. "I trusted Frank. I trusted Larry was doing what we asked him to do."

-- Bill Shaikin at L.A. Superior Court downtown