Dodgers File for Bankruptcy

June 27, 2011 0

 

 

 

A few hours ago the Los Angles Dodgers and current owner Frank McCourt have filed for bankruptcy protection in a Delaware court blaming Commissioner Bud Selig and  Major League Baseball for their refusal of a multibillion-dollar TV deal that would have helped lift the Dodgers recent financial problems.
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. “There will be no disruption to the Dodgers day to day business, the baseball team or to the Dodgers fans” team officials stated.

Dodgers officials claim Bankruptcy protection will provide the Dodgers with a process to address their Finanical responsibilities as well as receive the capital needed to ensure long- term financial stability.

If Selig had approved the deal between the Dodgers and FOX McCourt and the Dodgers would have received $385 million dollars up front which would’ve helped McCourt in a settlement between him & ex-wife and former Dodgers CEO Jamie McCourt. Without that deal Frank McCourt now faces the potential of missing a June 30 Dodgers payroll that may lead to MLB’s takeover of Los Angeles Dodgers.

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