MLB considers seizing Dodgers

Associated Press

WILMINGTON, Del.

The owner of the Los Angeles Dodgers won a reprieve in bankruptcy court Tuesday to maintain day-to-day operations, while Major League Baseball considered seizing control of the cash-strapped ballclub.

Dodgers owner Frank McCourt is squaring off in bankruptcy court against the league in a contentious battle over one of the most lucrative franchises in baseball. The ownership fight is linked in part to McCourt’s divorce from his wife and former team CEO Jamie McCourt.

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

McCourt gained approval from Judge Kevin Gross to enter into a $150 million bankruptcy financing arrangement to keep the team running.

A person familiar with the league’s plans told The Associated Press that MLB “probably” will file a motion to seize the Dodgers, which has been operating under the oversight of a monitor appointed by Selig in April.

Baseball’s constitution allows Selig to take control of a team that seeks Chapter 11 protection, but the league first must file a motion seeking termination of the franchise.

It’s unclear when that motion would be filed, but the judge asked attorneys representing Selig for a copy of the league’s constitution, noting that it “has an impact here.”

Gross granted the Dodgers’ request for debtor-in-possession financing after attorneys for both sides huddled behind closed doors for more than an hour, emerging with an agreement to make two modifications to the proposed agreement with hedge fund Highbridge Capital.

One of the modifications reduces the exit fee that would be due to Highbridge from $4.5 million to $250,000. The other removed weekly updates on the team’s effort to license its broadcast rights, and a July 29 deadline to agree on a process calling for bankruptcy court approval of a sale within six months of Monday’s bankruptcy filing, and a closing within 45 days of the court order.