Judge Approves Dodgers’ Bankruptcy Financing Despite MLB Objections

WILMINGTON, Del. (AP) — A Delaware judge has authorized the Los Angeles Dodgers to enter into a $150 million bankruptcy financing arrangement after the club satisfied certain concerns raised by Major League Baseball.

After trading sharply worded briefs over the proposed financing, attorneys for the league and the team agreed the Dodgers could proceed with their proposed financing on an interim basis pending a July 20 hearing.

The agreement includes reducing a proposed exit fee for the lending group from $4.5 million to $250,000, and removing certain deadlines regarding the sale of broadcast rights.

As part of the agreement, Judge Kevin Gross authorized the Dodgers to continue paying vendors, utility providers and employees, and to keep up with tax and insurance obligations. The granting of such motions is routine in first-day hearings in bankruptcy court, but Gross noted that the baseball club’s case is unique in some aspects.

“I haven’t seen a wage motion quite like this one,” the judge said, referring to the team’s 44-page motion to continue paying hundreds of full-time and part-time employees, including about 250 players, most of whom are in the minor

Earlier Tuesday, the league accused Dodgers owner Frank McCourt of siphoning off more than $100 million in revenue and driving the team into a liquidity crisis. The Dodgers said the league was trying to exert a stranglehold on the team.

The Dodgers have blamed the bankruptcy filing on Selig’s refusal to approve a multibillion-dollar TV deal that McCourt was counting on to keep the cash-starved franchise afloat.

(© Copyright 2011 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

Comments

One Comment

  1. jaided says:

    worst owner in sports history. Go back to Boston give people in los angeles their team back u chump. everyone tru fan should boycott that stadium.

  2. Philip Porembski says:

    yo law you should not put people in jail because you know people should not be in jail. its elementry. i shouldnt have to tell ya

  3. ame says:

    Why was McCourt allowed to buy the team in the 1st place? He needs to go!!! I have only taken my son ONCE this season! I’m not giving McCourt anymore of my money!!! We didn’t renew our season seats and our friends didn’t either. They raised the prices on the tickets, and somehow there’s no money??? MCCOURT GET THE F*** OUT!!!!!

  4. Jeff says:

    It is taking allot of will power but I am not going to any more games until the Dodgers
    have a new owner.

  5. aa says:

    McCourt is getting want he wants but I could not cash my check
    along with others that were at the stadium yesterday trying to get an answer why the bank REFUSED to cash our checks.
    I’m sure Frank is fine with cash in his pocket what about his employees
    when are we going to get paid.

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