Los Angeles Dodgers File for Bankruptcy

The Los Angeles Dodgers filed for bankruptcy court protection early this morning, less than a week after Bud Selig and Major League Baseball blocked the team from signing a new television deal to provide it with the cash it needed to meet the team’s payroll.

Well…now it look like Frank McCourt will need to prove that he has money to pay his current bills in order to retain control of the Los Angeles Dodgers.

Hard to believe that a storied franchise like the Dodgers is in so much financial trouble!

From the Los Angeles Times:

In his bankruptcy filing, McCourt showed he had a $150-million loan for interim financing. In order to obtain the loan, McCourt agreed to pay at least 10% interest and a $4.5-million fee.

In Tuesday’s hearing, Major League Baseball is expected to offer alternative financing, on better terms. Those terms were not certain on Monday, but MLB previously had said it would not provide financing to McCourt unless he agreed to sell the Dodgers.

If the bankruptcy judge grants McCourt interim financing, the focus could turn to McCourt’s long-term solution — an auction of the Dodgers’ cable television rights. The league claims it has approval rights for all television contracts, but McCourt is asking the bankruptcy judge to override MLB rules in the interest of fully repaying creditors. In response, the league is expected to say the value of the Dodgers’ television rights is not in doubt and the creditors have no need to worry about not getting paid.

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2 Comments on “Los Angeles Dodgers File for Bankruptcy”

  1. cliffeed Says:

    McCourt is better off selling the Dodgers, he’s just going to dig himself a deeper hole trying to get out this mess.

  2. Chris Ross Says:

    I think it’s sad that Frank Mccourt could screw up a team as established, storied and reputable as the LA Dodgers. They play in such a big market and it’s unbelievable that he could file for bankruptcy. It’s amazing that his divorce has caused not only himself but a huge franchise so much turmoil. The Dodgers obviously aren’t going anywhere but it’s pretty bad that he could let this happen. It’s going to be interesting to see who the Dodgers are sold to because that guy or those guys are going to be awful lucky to get such a storied franchise. Also, you think you could check out my blog cuz I really would love to know what you think. http://chrisross91.wordpress.com/2011/06/27/mark-cuban-is-perfect-for-the-dodgers/

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