Los Angeles Dodgers Bankruptcy - Frank McCourt blames MLB Commissioner

baseball graphic - BSN

(Best Syndication News) - The Los Angeles Dodgers have filed for chapter 11 bankruptcy protection, which will allow the baseball team owners to deal with immediate finances. In a statement, Dodger owner, Frank McCourt, mentioned Major League Baseball Commissioner Bud Selig as the reason the team had to file for chapter 11.

Selig did not approve a media transaction between the Los Angeles Dodgers and FOX network, which was a multibillion-dollar media rights transaction. If the MLB Commissioner approved of this, the Dodgers would have had access to hundreds of millions of dollars. The office of the MLB Commissioner rejected the proposed deal. The Dodgers have been trying for almost a year to get Selig to approve the media deal.

The chapter 11 bankruptcy will allow the LA Dodgers to reorganize as well as to gain enough financing to meet short term expenses said Bruce Bennet, bankruptcy counselor from Dewey & LeBoeuf. The LA Dodgers have secured $150 million in Debtor-in-Possession (DIP) financing under the chapter 11 filing.

The LA Dodgers will continue to operate as usual and the games will go on as planned. Dodger employees will be paid and benefit packages will be provided. Tickets will be honored and the price is to remain the same. Vendors and suppliers will have any post-petition sums paid in the usual way, with the purpose of paying any pre-petition totals in full preceding to or at the close of the bankruptcy case.

By: Dave Reddy



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