L.A. Dodgers File for Bankruptcy After Nasty Divorce Saga
- Posted on June 27, 2011 at 10:25am by
Christopher Santarelli
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Crisis surrounding the Los Angeles Dodgers finally came to an expected climax Monday, as the team has filed for bankruptcy protection in a Delaware court blaming the refusal of Major League Baseball to approve a multibillion-dollar TV deal.
The franchise has been unsteady through an ugly 2-year divorce between owner Frank McCourt and his wife Jamie, the team’s former CEO. Now that the TV deal which would have provided $385 million up front has fallen apart, Mr. McCourt faces the potential of missing June 30 team payroll. Mr. McCourt claims the Dodgers lobbied MLB Commissioner Bud Selig for almost a year to approve the transaction. Selig‘s decision has now also voided the McCourts’ divorce settlement.
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 and ensure the team’s long-term financial stability, the Dodgers said in a news release. A judge would need to approve use of the money and a hearing is set for Tuesday.
Baseball Commissioner Bud Selig announced last week that he wouldn’t approve a Dodgers television deal with Fox Sports. McCourt had hoped Selig would sign off on the transaction that 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.
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.
The Dodgers’ season began with a group of LA fans brutally beating Bryan Stow, a fan of the visiting rival San Francisco Giants, in the stadium parking lot after the game to the point where his eyes have just been able to open this week. The team is currently 9 games under .500.
The Associated Press contributed to this report
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CJohnWest
Posted on July 5, 2011 at 8:13pmI know it won’t happen, but, Bring the Dodgers Back To Brooklyn!!
Report Post »S. Dakers
Posted on June 28, 2011 at 7:24pmGo Dodgers! And take the Raiders with you…
Report Post »georgeisn6
Posted on June 28, 2011 at 12:59amShould throw both the deadbeats in the clink. lock the gates to the stadium,put those hundred million dollor children out on the street’s and let them play stick ball. professional sports has become the most corrupting influence in the nation.
Report Post »hoya97
Posted on June 28, 2011 at 11:22amYou are absolutely correct!!!!
Report Post »mcFirst
Posted on June 27, 2011 at 9:39pmOne of the greatest thefts of all time, it took awhile but the greed has finally eroded the LA team.
The Dodgers got their name when in Brooklyn, because of all the street cars you had to dodge when walking around Brooklyn. MLB should not have let the owner O’Malley take the team in 58.
Report Post »itsjustkim
Posted on June 27, 2011 at 7:37pmPoor Doyers.
Report Post »retriever
Posted on June 27, 2011 at 6:53pmGood! Now they can move away from California!
Report Post »Sound The Trumpet In Zion
Posted on June 27, 2011 at 8:40pmYou’re right,maybe they can be real ballplayers now since they don’t have to play “enviromentally green”
Report Post »proliance
Posted on June 27, 2011 at 5:21pmGo Cardinals!
No, seriously. Go. Three weeks ago you had the best record in MLB and now you’ve lost 7 of your last 10.
Report Post »ImChiquita
Posted on June 27, 2011 at 4:44pmBEAT LA!
BEAT LA!
Ah, it has a nice ring to it, don’t you think?
Report Post »itsjustkim
Posted on June 27, 2011 at 7:36pmhmmm…must be a fan of another NL west team…
Report Post »Billsocal
Posted on June 27, 2011 at 4:34pmNever been a Dodger fan. Have been a life long Angel Fan evem before they were in the major leagues. I remember going to Wrigley Field to watch the Angels plat against the San Francisco Seals. I also remember the Hollywood Stars. The McCorts were bleeding the Dodgers dru. What person has a high priced house just to was your clothes. Let them go back to Bean Town . Maybe MLB will get smart and offer the team to Mark Cuban.
Report Post »MUDFLAPS
Posted on June 27, 2011 at 4:22pmstopped watching them when Sandy Koufax left.
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