Bankruptcy filing is McCourt’s last stand
By Tim Brown, Yahoo! Sports2 hours, 42 minutes ago
LOS ANGELES – At dawn Monday, hours after they’d sent their fans home from Dodger Stadium with a walkoff win, the Los Angeles Dodgers announced they were bankrupt, forced into it by Major League Baseball and commissioner Bud Selig.
They are The Boys of Chapter 11, a once-glorious franchise and now collateral damage in standoffs between their owner Frank McCourt and the commissioner, between McCourt and his ex-wife Jamie, and, possibly, between a Delaware bankruptcy judge and baseball.
Following months of maneuvering in the wake of his divorce, and weeks of bickering over proposed television rights funding with Selig, McCourt chambered and fired his last live round, just days before Selig was poised to seize the Dodgers.
The Dodgers filed for protection under Chapter 11 of the U.S. Bankruptcy Code, which McCourt believes will allow him the time to secure funding for his team while protecting his ownership against Major League Baseball’s advances.
McCourt also announced he’d “received a commitment” for another $150 million in financing – a loan taken outside the authority of baseball – that would allow him to pay his players and employees, run the day-to-day operations of the club and acquire more players.
Creditors listed in the filing include Manny Ramirez(notes) (nearly $21 million), who last played for the team in 2010, Andruw Jones(notes) ($11 million), the Chicago White Sox ($3.5 million), Continental Airlines ($339,000), the City of Los Angeles ($240,000) and Vin Scully ($153,000).
While MLB officials read through the filing and pondered their response, McCourt issued a statement in which he accused Selig of cornering the Dodgers.
“He’s turned his back on the Dodgers, treated us differently, and forced us to the point we find ourselves today,” McCourt said. “I simply cannot allow the commissioner to knowingly and intentionally be in a position to expose the Dodgers to financial risk any longer.”
Those close to Selig said McCourt’s strategy was not unexpected, and noted that the statement deftly lacked personal accountability in the fall of the Dodgers.
Meantime, McCourt continued to stump for a 17-year, near-$3 billion deal with Fox, which he has claimed would ease the club’s dramatic cash flow issues. Last week, Selig refused to approve the deal because a portion of it would be used to settle McCourt’s divorce and other past debts.
That McCourt’s divorce remains unsettled is another potential obstacle in this attempt to maintain control of the team.
The Major League Baseball constitution allows Selig to terminate McCourt’s ownership because of the bankruptcy filing. The league would have to work within the rules of the court, however, and could be at the mercy of an extended process.
They are The Boys of Chapter 11, a once-glorious franchise and now collateral damage in standoffs between their owner Frank McCourt and the commissioner, between McCourt and his ex-wife Jamie, and, possibly, between a Delaware bankruptcy judge and baseball.
Following months of maneuvering in the wake of his divorce, and weeks of bickering over proposed television rights funding with Selig, McCourt chambered and fired his last live round, just days before Selig was poised to seize the Dodgers.
Frank McCourt watches the Dodgers face the Padres on April 29 from his seat at Dodger Stadium.
(Getty Images)
(Getty Images)
The Dodgers filed for protection under Chapter 11 of the U.S. Bankruptcy Code, which McCourt believes will allow him the time to secure funding for his team while protecting his ownership against Major League Baseball’s advances.
McCourt also announced he’d “received a commitment” for another $150 million in financing – a loan taken outside the authority of baseball – that would allow him to pay his players and employees, run the day-to-day operations of the club and acquire more players.
Creditors listed in the filing include Manny Ramirez(notes) (nearly $21 million), who last played for the team in 2010, Andruw Jones(notes) ($11 million), the Chicago White Sox ($3.5 million), Continental Airlines ($339,000), the City of Los Angeles ($240,000) and Vin Scully ($153,000).
While MLB officials read through the filing and pondered their response, McCourt issued a statement in which he accused Selig of cornering the Dodgers.
“He’s turned his back on the Dodgers, treated us differently, and forced us to the point we find ourselves today,” McCourt said. “I simply cannot allow the commissioner to knowingly and intentionally be in a position to expose the Dodgers to financial risk any longer.”
Those close to Selig said McCourt’s strategy was not unexpected, and noted that the statement deftly lacked personal accountability in the fall of the Dodgers.
Meantime, McCourt continued to stump for a 17-year, near-$3 billion deal with Fox, which he has claimed would ease the club’s dramatic cash flow issues. Last week, Selig refused to approve the deal because a portion of it would be used to settle McCourt’s divorce and other past debts.
That McCourt’s divorce remains unsettled is another potential obstacle in this attempt to maintain control of the team.
The Major League Baseball constitution allows Selig to terminate McCourt’s ownership because of the bankruptcy filing. The league would have to work within the rules of the court, however, and could be at the mercy of an extended process.
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