MLB Objects To Dodgers Bankruptcy Financing
LOS ANGELES (CBS/AP) — Major League Baseball is objecting to the bankruptcy filing by the Los Angeles Dodgers, accusing team owner Frank McCourt of siphoning off more than $100 million in club revenue and driving the Dodgers into a liquidity crisis.
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In papers submitted in Delaware bankruptcy court Tuesday, the league objected to the Dodgers' request for authorization to enter into a $150 million financing arrangement with a group of lenders in order to meet cash flow needs, including a Thursday payroll deadline.
Commissioner Bud Selig claims in the filing that his office can provide a loan on better terms, and argues that the court should reject McCourt's financing proposal because it compels the team to sell valuable future broadcast rights to meet current expenses and to provide money for McCourt's personal use.
"The action taken by McCourt does nothing but inflict further harm to this historic franchise," Selig said earlier this week.
Major League Baseball's objection filings:
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