Dodgers' deep financial troubles come to a head

Los Angeles Dodgers owner Frank McCourt speaks during a Dodger Stadium security news conference at Los Angeles Police Department headquarters on April 8, 2011 in Los Angeles, California.

This morning the Los Angeles Dodgers filed for bankruptcy protection. In a statement the team says they were forced into Chapter 11 when baseball commissioner, Bud Selig, refused to okay a television deal with FOX that may have been worth billions of dollars. The FOX deal was also the only way embattled owner, Frank McCourt, could resolve his ongoing divorce. McCourt insisted that since he became owner the Dodgers have been on an upswing and that Commissioner Selig intentionally put the Dodgers in financial harm’s way. He said this move was the only way to protect the franchise…and his interest in it. Under Major League Baseball rules an owner can be stripped of ownership if they file for bankruptcy. However, McCourt said he had secured enough money to meet payroll and other financial obligations, which means the courts could rule that he can stay in control of the team for the duration of the bankruptcy proceeding. But will the courts rule in his favor? If they do, what’s next for the Dodgers? And what’s next for McCourt now that his divorce settlement’s been declared null and void and the team is operating under Chapter 11?

This morning the Los Angeles Dodgers filed for bankruptcy protection. In a statement the team says they were forced into Chapter 11 when baseball commissioner, Bud Selig, refused to okay a television deal with FOX that may have been worth billions of dollars. The FOX deal was also the only way embattled owner, Frank McCourt, could resolve his ongoing divorce. McCourt insisted that since he became owner the Dodgers have been on an upswing and that Commissioner Selig intentionally put the Dodgers in financial harm’s way. He said this move was the only way to protect the franchise…and his interest in it. Under Major League Baseball rules an owner can be stripped of ownership if they file for bankruptcy. However, McCourt said he had secured enough money to meet payroll and other financial obligations, which means the courts could rule that he can stay in control of the team for the duration of the bankruptcy proceeding. But will the courts rule in his favor? If they do, what’s next for the Dodgers? And what’s next for McCourt now that his divorce settlement’s been declared null and void and the team is operating under Chapter 11?

Guests:

Michele Steele, Sports Business Reporter, Bloomberg News

David Wharton, Staff Reporter, Los Angeles Times