Owner Frank McCourt filed for Chapter 11 bankruptcy protection in an answer to Major League Baseball Commissioner’s denial of a television contract. The rejection of the contract invalidated a divorce settlement between Frank and Jamie McCourt.
Frank McCourt stated for months that the approval of the Fox television contract was crucial for the financial health of the Dodgers. Frank and Jamie McCourt have been fighting over ownership of the team. Jamie McCourt is claiming half of Frank’s assets.
Commissioner Bud Selig is said to be aghast over a provision in the divorce settlement that diverts almost half of the immediate payment from the television contract for the benefit of the McCourts instead of for the benefit of the Dodgers.
Selig had intentions of taking over day-to-day operations of the team if payroll for June 30, 2011, had not been paid. McCourts filing Chapter 11 bankruptcy short circuited Seligs plans and has allowed him to retain control of operations for the time being.
A possibility exists that the MLB will file a motion to seize the Dodgers.
Some of the outstanding debts include $21 million owed to Manny Ramirez, Andruw Jones is owed $11 million on a 2007 contract and announcer Vin Scully is owed $150,000.
Benjamin Brand Services – Chicago bankruptcy attorney