Los Angeles Dodgers in a muddle as Frank McCourt files for Bankruptcy Protection – MLB News
The Los Angeles Dodgers’ faced another blow on Monday, June 27, when team owner Frank McCourt filed for bankruptcy protection in a Delaware court. The Dodgers have been in all sorts of off-the-field problems, initiated by a fight for team ownership between
McCourt and his ex-wife Jamie some two years ago.
McCourt, facing all sorts of liquidity problems, made this decision just three days before the team’s payroll due on Thursday, June 30, failing which there is a possibility of Major League Baseball taking over the team. After baseball commissioner Bud Selig
rejected a multibillion-dollar deal with a popular television channel last week, the once high and mighty McCourt now hopes for and seeks a $150 million approval from court for team’s daily operations.
This decision also means that the air of resolution on the team’s management that blew last week is no longer a possibility in the short-term at least. It was earlier expected that Frank will buy Jamie’s share for $100 million subsequent to a one-day court
hearing in August. In these circumstances, the amount seems a distant likelihood.
This season, Frank had managed somehow to meet his obligations by taking loans and external financing. Come June 30, however, his problems were expected to escalate. With 300 full-time employees on the payroll, about $20 million is scheduled to be paid in
current and deferred compensation with another $18 million lined up for funding now that will enable the team to pay its players in 2012. Furthermore, the Dodgers have committed to pay $92.5 million in guaranteed player contracts.
Bud Selig cited his disappointment at this latest development. He reiterated that the current financial situation which the Dodgers face is owed to Mr. McCourt’s excessive debt and diversion of club assets for personal usage. This saga initiated when Frank
and Jamie decided to part ways. It is worth pointing out to the $67 million loan that Mr. McCourt took against the parking lot of the Dodgers’ stadium. Selig reaffirmed that any solution which mortgaged the future of the club, fans or the game of baseball
will not be acceptable.
Frank McCourt was pretty confident in replying Selig. He said that the commissioner has ill-treated them and turned his back on them, forcing them to the point where they stand now. Frank stated that the media rights deal that he had presented a year ago
would have solved all financial issues for the franchise but Selig was never loyal in solving the club’s problem and had intentions for MLB to take-over the running of the franchise.
One of the most valued and prestigious franchise of baseball, the Dodgers are now inflicted with humiliation and dishonour.
On the sporting end, nevertheless, the LA Dodgers have not let their fans down. They completed a 15-0 rout of Minnesota Twins on Monday, June 27, when their top management was indulged in activities which did not come good with the team followers. The fans
now hope that the team continues to flourish and the ownership and liquidity issues are resolved without them being affected directly or indirectly.
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