One of baseball's proudest franchises is in tatters, its future to be decided more in the courtroom than on the field.
The Los Angeles Dodgers filed for bankruptcy protection in a Delaware court Monday, blaming Major League Baseball for refusing to approve a multibillion-dollar TV deal that owner Frank McCourt was counting on to keep the troubled franchise afloat.
McCourt, upset that baseball Commissioner Bud Selig rejected the proposed TV deal last week, hopes a federal judge will approve $150 million in financing to be used for daily operations, which would give him more time to seek a more favorable media contract. A hearing is set for Tuesday.
''The action taken today by Mr. McCourt does nothing but inflict further harm to this historic franchise,'' Selig said in a statement.
The team is bleeding red ink instead of Dodger blue, with former players filing millions in claims against the team. Even beloved Hall of Fame announcer Vin Scully is owed more than $150,000 as part of his contract, court documents show.
The filing by a cash-starved McCourt comes just days before he was expected to miss a team payroll on Thursday and possibly be confronted with an MLB takeover.
Legal observers expect MLB to contest McCourt's request for filing bankruptcy, arguing the dispute should remain within the confines of baseball and that the league's constitution allows Selig to take control of a team that seeks Chapter 11 protection.
The main issue is whether ''the bankruptcy court maintains control of the proceedings or acquiesce to baseball,'' said Edward Ristaino, who chairs the sports practice at the law firm Akerman Senterfitt.
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The Los Angeles Dodgers filed for bankruptcy protection in a Delaware court Monday, blaming Major League Baseball for refusing to approve a multibillion-dollar TV deal that owner Frank McCourt was counting on to keep the troubled franchise afloat.
McCourt, upset that baseball Commissioner Bud Selig rejected the proposed TV deal last week, hopes a federal judge will approve $150 million in financing to be used for daily operations, which would give him more time to seek a more favorable media contract. A hearing is set for Tuesday.
''The action taken today by Mr. McCourt does nothing but inflict further harm to this historic franchise,'' Selig said in a statement.
The team is bleeding red ink instead of Dodger blue, with former players filing millions in claims against the team. Even beloved Hall of Fame announcer Vin Scully is owed more than $150,000 as part of his contract, court documents show.
The filing by a cash-starved McCourt comes just days before he was expected to miss a team payroll on Thursday and possibly be confronted with an MLB takeover.
Legal observers expect MLB to contest McCourt's request for filing bankruptcy, arguing the dispute should remain within the confines of baseball and that the league's constitution allows Selig to take control of a team that seeks Chapter 11 protection.
The main issue is whether ''the bankruptcy court maintains control of the proceedings or acquiesce to baseball,'' said Edward Ristaino, who chairs the sports practice at the law firm Akerman Senterfitt.
Full Story Here
