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Bankruptcy filing could keep Dodgers with McCourt

Posted on: May 10, 2011 8:50 pm
 

McCourt

By Evan Brunell


If Frank McCourt wants to keep the Dodgers, he may be able to do so by declaring bankruptcy, the Los Angeles Times reports.

Seems odd, doesn't it? Declare bankruptcy and keep the team, but that's the challenge at play as MLB moves closer and closer to trying to strip McCourt of his power as he currently is unable to meet May payroll for his players. If McCourt declared bankruptcy, he would be able to go before a judge and contend that his $3 billion deal with Fox that is currently gathering dust on Bud Selig's desk is what is needed to repay his debtors. The court could rule that the deal needs to be approved, because the whole point of bankruptcy court is to ensure that lenders are paid back.

"You can't tell somebody you can't get paid back," a sports investment banker, who wished to remain anonymous, said. "The one right a debtor has is the right to pay back his lenders."

The possibility of a bankruptcy filing may be why Bud Selig appointed a trustee to go through the Dodgers' financials. A source said that Selig hopes to learn whether McCourt would default on loans to companies controlling Dodger Stadium and surrounding land should he file for bankruptcy.

On the face of it, McCourt would have strong positioning in bankruptcy court and would be considered a heavy favorite to eventually win out. However, he may run into problems with his lenders, who may not want to get on baseball's bad side. They could refuse McCourt's reorganization plans in a tacit move to freeze McCourt out of the game in order to keep its business with baseball and the other 29 clubs.

"If the creditors were completely supportive of Mr. McCourt, he would be in a pretty strong position," said Rob Kampfner, an attorney for White and Case, the firm that represented Nolan Ryan's group in winning a bankruptcy court bid for the Rangers. "But they're probably inclined to see their portfolio in a much larger sense than people that sell pencils to the Dodgers."

Should the creditors not approve McCourt's plan, he would have to give up the team but would have a better chance of getting the most bang for his buck via bankruptcy court. While MLB must still approve all new owners, the road toward doing that is far easier in bankruptcy court.  Selig's influence is widely felt during team purchases as he essentially handpicks new owners, but that influence zeroes out in bankruptcy court, which would allow McCourt to sell to the highest bidder and ensure top dollar in an auction.

However, McCourt's ex-wife, Jamie, may have a say in the proceeds. Jamie could argue that Frank cannot take the team into bankruptcy without her approval as she owns half the team, as a person familiar with her thinking said. However, she would likely not stand in the way of the filing, given it would end up boosting the price of the Dodgers.

Baseball does have one last line of defense as it could exercise a "voluntary termination" clause that the MLB constitution has in place in case of any bankruptcy filing. However, baseball would open itself to criticism and litigation if they did so as that clause was not used during last season's Rangers bankruptcy filing.

Regardless of how the bankruptcy filing plays out, McCourt would have a stronger hand to play against Selig as he would have a strong chance of retaining the team and if he didn't, would be able to maximize the amount the team is sold for while thumbing his nose at Selig one last time. 

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Category: MLB
Comments

Since: Dec 2, 2011
Posted on: December 10, 2011 3:20 pm
 

Bankruptcy filing could keep Dodgers with McCourt

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Since: Dec 2, 2011
Posted on: December 6, 2011 1:13 pm
 

Bankruptcy filing could keep Dodgers with McCourt

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Since: May 20, 2007
Posted on: May 11, 2011 2:41 pm
 

Bankruptcy filing could keep Dodgers with McCourt

Steve From Pheonix .
The Dodgers can NEVER leave LA. Because your from Pheonix and do not have grand pas and great grand pas that were Diamondback fans I will forgive you. But for both Dodger and Giant fans alike, we were BORN this way. We were RAISED this way. And our children will follow. And who are you to complain about attendance anyway? Why don't you go to one of your own games huh? Lets go Giants!!!! Sweep!!!!



harwich82
Since: Apr 28, 2011
Posted on: May 11, 2011 11:07 am
This comment has been removed.

Post Deleted by Administrator




Since: Aug 26, 2006
Posted on: May 11, 2011 10:09 am
 

Bankruptcy filing could keep Dodgers with McCourt

Why is Selig not approving this TV deal with FOX?  From what I hear from McCourt he has the deal done and it's sitting on Selig's desk for approval and the $300 million is more than enough to make the team liquid again.
Because it is frontloaded with well over half of the money in the first 5 years of a 30 year agreement. If Selig approves it there is nothing preventing McCourt from selling in 5 or 6 years and leaving the new owner holding the bag on what was a very bad TV deal.




Since: Mar 15, 2010
Posted on: May 11, 2011 9:49 am
 

Bankruptcy filing could keep Dodgers with McCourt

Anything and I mean anything they have to do to get this team away from McCheap should be their priority! Once the Dodgers actually get an owner who cares about the team an not himself the Dodgers will be fine!

Until then they mired in mediocrity!



Since: Dec 17, 2009
Posted on: May 11, 2011 2:59 am
 

Bankruptcy filing could keep Dodgers with McCourt

listen you goof..dodgers are top 5 in attendance by LA fans every year despite futility for 30 yrs ya ignant jack-a$$...

great idea about vegas..lmao!!! i think we move the stinky diamond backs, cardinals and suns to bakersfield...they're looking fer a few good teams to prop up thier sagging economy...

give your head a shake you bird turd

sincerely,

bug selig



Since: Aug 7, 2008
Posted on: May 11, 2011 2:38 am
 

Bankruptcy filing could keep Dodgers with McCourt

This is disgraceful and it's not Dodgers owner Frank McCourt or his wife's fault but the city of Los Angles and the Dodgers fans for putting this team in the dumps as it has been for quite awhile now and in the future too. MLB and Bud Selig has to get rid of the Dodgers out of LA and there fans or they both will ruin MLB for good. The city of Vegas has been looking for a professional sports team to come to there city and if they can get the Dodgers then they will save baseball from LA and the no appreciated Dodgers fans too. Plus the Dodgers are not just ruining baseball but the great repetition of the NL West too. Get on the ball LA and especially you Dodgers fans or the MLB will take your sorry Dodgers away like the NFL did to football to you guys when you did not support your Raiders and Rams teams remember that you crack heads in LA.



Since: May 10, 2007
Posted on: May 11, 2011 1:05 am
 

Bankruptcy filing could keep Dodgers with McCourt

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McCout (McFail) is about as smart as the MaGOOFs (Maloofs) in Sacramento. McCourt has NOT done anything since he has owned the Dodgers (controlling interest) to bring anything good to the team or the game. This is EXTREMELY evident by MLB taking over the reins for the club. If BK saves his ass and keeping the Dodgers, there should be an appeal from Seilig. Bud isn't the greatest commish but he did make the right move by taking over this storied franchise. If the courts rule to have Frank or the other McScrewed to have ANY interest in the Dodgers franchise, would be an honest and epic travesty.

Off my box...SH



Since: Mar 15, 2011
Posted on: May 10, 2011 10:20 pm
 

mccourt's wife

the wife gets an allowance of $500,000 each month!  That's some serious spending money---can she use a good sex slave to spend all that money on???


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