Dodgers file for bankruptcy

[jaba]

sad news

LOS ANGELES – The Los Angeles Dodgers filed for bankruptcy protection in a Delaware court Monday, blaming the refusal of Major League Baseball to approve a multibillion-dollar TV deal that owner Frank McCourt was counting on to keep the troubled team afloat.

The Chapter 11 financing permits the Dodgers to use $150 million for daily operations and buys time for the team to seek a media deal, the team said in a news release.

"There will be no disruption to the Dodgers day-to-day business, the baseball team, or to the Dodger fans," the statement said.

Bankruptcy protection will provide the Dodgers with a process to address its immediate financing requirements and obtain the capital necessary to ensure the baseball franchise's long-term financial stability, the team said.

McCourt said the Dodgers have tried for almost a year to get Selig to approve the Fox transaction. The deal would have provided him with $385 million up front and was vital to a binding settlement reached between him and his ex-wife and former Dodger CEO Jamie McCourt last week. McCourt now faces the potential of missing a June 30 team payroll without the TV funds and that could lead to a MLB takeover.

The McCourts have been embroiled in a contentious divorce where their lavish spending habits were detailed in court documents. The former couple took out more than $100 million in loans from Dodger-related businesses, records show.

In April, MLB took the extraordinary step of assuming control of the troubled franchise. Former Texas Rangers President Tom Schieffer was appointed to monitor the team on behalf of Selig, who said he took the action because he was concerned about the team's finances and how the Dodgers are being run.

McCourt has maintained he met the criteria set forth by baseball officials in order for the TV contract to be approved and would amend the conditions if need be. The Dodgers' current TV deal with Fox expires in 2013.

The divorce settlement, now voided because of Selig's decision, called for a one-day "characterization" trial Aug. 4 to determine if title to the Dodgers is in Frank McCourt's name or if the team should be considered community property and sold. Sacks said the trial may be shelved and Superior Court Judge Scott Gordon could decide how to handle the former couple's assets at a later date.

Gordon ruled in December that a postnuptial marital agreement that gave Frank McCourt sole ownership of the Dodgers was invalid. That cleared the way for Jamie McCourt, who served as the team's CEO and was fired by her ex-husband two years ago, to seek half the team under California's community property law.

Read more: http://www.foxnews.com/sports/2011/06/27/los-angeles-dodgers-file-for-bankruptcy/#ixzz1QUkaXkeh

 

[paracarl44]

This is something that Milagros will want to view.

 

[Backstep]

I'm not surprised.

That team has had a rough few years; that fanbase deserves better and I hope they get it.

Unless the Dodgers decide they want to move to another city...

 

[leafstk]

Ouch... no, Mils won't like this one bit

 

[Snail Shell]

"The Dodgers" will endure, even if they move. If LA doesn't want the franchise, another city will.

SS

 

[The Fallen Angel]

"The Dodgers" will endure, even if they move. If LA doesn't want the franchise, another city will.

SS

that was my first thought, will they be moving or not

 

[primetime]

They're not moving anywhere. This bankruptcy move is a last ditch effort by Frank McCourt to prevent Bud Selig from taking over the Dodgers and forcing him to sell the team. This is just the opening salvo in this long, stupid war.

Believe me, the Dodgers will remain in Los Angeles....

 

[jaba]

They're not moving anywhere. This bankruptcy move is a last ditch effort by Frank McCourt to prevent Bud Selig from taking over the Dodgers and forcing him to sell the team. This is just the opening salvo in this long, stupid war.

Believe me, the Dodgers will remain in Los Angeles....

The speculation is Selig rejected the proposed Dodger/ Fox broadcasting deal to force owner McCourt to sell the team to more financially stable ownership.

Dodgers arent leaving, but hopefully owner McCourt will.....

 

[milagros317]

Very sad state of affairs. 🙁 🙁

Frank McCourt is a disgrace to the Dodgers, to Major League Baseball, and to humanity in general. The sooner he's forced to sell, the better.

 

[The Fallen Angel]

Question. If the Dodgers fail to make payroll tomorrow, does that make all of their players effectively free agents? Or how does that work?

 

[bftk2005]

I just saw on ESPN that some of the employees paychecks did bounce, I don't know if it was the players or not.

 

[milagros317]

Apparently the bounced checks involved only part time employees and have been reissued.

http://aol.sportingnews.com/mlb/story/2011-06-30/dodgers-reissue-payroll-checks-after-several-bounce

Nevertheless, Frank McCourt is the scum of the earth and needs to be removed as owner ASAP.

 

[The Fallen Angel]

Apparently the bounced checks involved only part time employees and have been reissued.

http://aol.sportingnews.com/mlb/story/2011-06-30/dodgers-reissue-payroll-checks-after-several-bounce

Nevertheless, Frank McCourt is the scum of the earth and needs to be removed as owner ASAP.

i wouldn't go that far, he is a guy probably living out a dream of owning a baseball team. It shows you shouldn't buy a team if you know you can't afford it over the long haul, but it doesn't make him a bad person

 

[milagros317]

What makes him a bad person is diverting revenue from the Dodgers for his personal use, ignoring the fact that the team was under capitalized by him in the first place. His last, desperate attempt to continue this practice was the TV deal he signed with FOX, giving him a huge cash payment up front, but selling 19 years of TV coverage of the Dodgers for about half of what it is estimated to be worth. I'm no fan of Bud Selig, but I'm glad that he stopped this give-away of the Dodgers' future revenue for the convenience of the cash-hungry *&^%@$% Frank McCourt.

 

[Knox The Hatter]

It shows you shouldn't buy a team if you know you can't afford it over the long haul, but it doesn't make him a bad person

I'm sure Mrs. McCourt would disagree 😀

It would be best if somehow this business could be expedited. Both he and his wife need to go. Now. As far as McCourt is concerned, he'll be okay. I'm sure some programming representatives at Fox have called him, and suggested he subject his time to starring in a new reality show, which exhibits his daily existence, and how he conducts his divorce. It would help even better if he's carrying on with some Strip floozies, or some Mulholland dowager who drinks way too much while driving her Quattroporte. Yep! A ratings bonanza.

Frank McCourt is a disgrace. Looking back, Charlie Finley was an even bigger disgrace, but that was then.

 

[carol8961]

Frank McCourt is a scum. Because of his greed, people are not being paid. A whole team is bankrupt now. How dare he use the team's money for his own personal affairs. Unless, he is an idiot, he knew he was living beyond his means and obviously didn't care. And, now innocent people are suffering. I am tired of reading news like this.