Report: Dusty Baker has tax woes
CHICAGO — General Manager Jim Hendry of the Chicago Cubs said yesterday that Dusty Baker's reported troubles with the Internal Revenue Service would have no bearing on his managerial candidacy.
Although Cubs officials had not heard of the charges before yesterday, they expressed no concern. They will interview Baker on Monday in either San Francisco or Arizona and hope to introduce him as their manager next week.
ESPN broke the story yesterday, and many close to Baker suspect it was leaked to the network by Giants officials who were disappointed with the way Baker handled his departure from the team.
Asked if the organization was in any way responsible for the story, Giants spokesman Jim Moorehead replied, "Absolutely not."
ESPN said it had obtained documents in California detailing "a long history of troubled finances and IRS problems."
It reported that the IRS and California State Franchise Tax Board filed multiple liens over a 12-year period against Baker, the largest of which was for $2.3 million. The lien apparently resulted from Baker's owing back taxes, including penalties and interest.
Baker's tax attorney, Karen Hawkins, told ESPN that the Giants gave Baker a $1 million loan in his last contract in case he needed it to settle the dispute. Baker apparently did not need the money and returned it yesterday.
Hawkins also told the network that the IRS had garnished Baker's wages for several years. Those garnishments ended 16 months ago, and Hawkins said she is hopeful the dispute will be resolved next month.
"Mr. Baker has been addressing income-tax matters resulting from some unfortunate investments he made in the early 1980s," Hawkins told ESPN. "For the past 10 years, he has cooperated with the IRS and Franchise Tax Board to resolve ... the vast majority of these liabilities. We are currently in the process of resolving the final two issues.
"In connection with his last contract, Mr. Baker fully appraised Giants management of his ongoing negotiations with the tax authorities. Giants management agreed to advance funds, if needed, to Mr. Baker to assist in resolving these tax matters. ... However, at this time, Mr. Baker has no financial obligation to the Giants."
The only document ESPN displayed was from 1988-89. It showed an unpaid balance of $42,099.96 and a penalty of $27,423.79.
Hawkins said that Baker invested in four tax shelters on the advice of his brother.
The tax writeoffs he received from the shelters were disallowed in 1981 and 1982. The tax liabilities are under $400,000, but with interest over the years what he owes has reached more than $1 million, she said without giving an exact figure.
Baker led the Giants this season to their first World Series appearance since 1989. The team lost to Anaheim in seven games, and San Francisco announced on Wednesday night that Baker would not return for the 2003 season.
Giants General Manager Brian Sabean said Baker's alleged tax troubles did not influence the team's decision not to offer him a new contract.
"All of our talks with (agent) Jeff Moorad about Dusty Baker's continuing with the Giants was strictly job-description related," Sabean said.
The alleged tax problems also will have nothing to do with Baker's pursuit by the Cubs.
Hendry left a message for Moorad, who had yet to reply by early yesterday evening. Moorad is in Miami at a charity event put on by one of his clients, Texas Rangers catcher Ivan Rodriguez.
With catcher Dan Wilson agreeing to a two-year deal to stay with the Mariners, Hendry is more likely to look into signing Rodriguez.
But in an effort to avoid the slightest hint of tampering with Baker, Hendry has yet to speak to Moorad about Rodriguez.