southsider2k5 Posted June 27, 2011 Share Posted June 27, 2011 http://hardballtalk.nbcsports.com/2011/06/...for-bankruptcy/ The Dodgers file for bankruptcy Craig Calcaterra A mere three days before the payroll comes due — payroll that Frank McCourt can’t meet — the Dodgers have filed for bankruptcy, reports Richard Sandomir. With that, the legal game begins. Obviously the situation is fluid, and more details will stream in as the morning and day progresses, but for the time being, this could buy McCourt some time. Why? because a bankruptcy filing puts a halt on all legal action with respect to the bankruptcy estate (i.e. the Dodgers). McCourt will certainly argue that this will prevent a takeover from Major League Baseball, though the court may decide differently when it gets a chance to weigh in, likely in the next few days. The problem for McCourt is that the kind of bankruptcy the Dodgers have certainly filed is designed to reorganize the financial house. Frank McCourt, however, does not have a plan available to him to do such a thing or else he would have already done it. The filing isn’t yet circulating, but my guess is that he’s going to ask the court to order that the Fox TV deal be executed — assuming Fox wants to still do it, which it has been reported it may not — thereby providing funding. The problem with that, of course, is that the bankruptcy court won’t approve of anything that is not seen as in the best interests of the Dodgers, and it’s obvious that Major League Baseball and others would come in and make a strong case that the Fox deal is disastrous for the Dodgers or, at the very least, not the best deal they could make. If McCourt can do no better, the court may very well order a sale of the team. Perhaps auctioning it off, Texas Rangers-style. Which, by the way, would also put Major League Baseball in the same position it was in with respect to the Rangers: less-able to control who owns the team than it would otherwise be. Mark Cuban bid on the Rangers, after all. If his or some other non-chosen person’s money looked green to the bankruptcy court in such a scenario, Bud Selig would be hard-pressed to stop them from participating in a team auction. But let us not get ahead of ourselves. For now, we simply have Frank McCourt where he was inevitably headed: bankruptcy court. And some time has been bought. A little anyway. The end game for McCourt, however, doesn’t look all that better than it did before. Quote Link to comment Share on other sites More sharing options...
Balta1701 Posted June 27, 2011 Share Posted June 27, 2011 Last ditch attempt by McCourt to hold onto his cash cow. Hopefully the bankruptcy court is at least as open-eyed as Selig. Quote Link to comment Share on other sites More sharing options...
Kyyle23 Posted June 27, 2011 Share Posted June 27, 2011 McCourt screwed up bad. There is all kinds of paper trails leading to him and his soon to be ex-wife using the dodgers as their personal ATM. MLB is already having their way with this, which is obvious by FOX backing out of the TV deal. Quote Link to comment Share on other sites More sharing options...
Balta1701 Posted June 27, 2011 Share Posted June 27, 2011 QUOTE (KyYlE23 @ Jun 27, 2011 -> 09:20 AM) McCourt screwed up bad. There is all kinds of paper trails leading to him and his soon to be ex-wife using the dodgers as their personal ATM. The only question I have is...would a bankruptcy court have a problem with that? Quote Link to comment Share on other sites More sharing options...
southsider2k5 Posted June 27, 2011 Author Share Posted June 27, 2011 QUOTE (Balta1701 @ Jun 27, 2011 -> 08:22 AM) The only question I have is...would a bankruptcy court have a problem with that? Depends on how it was done. Quote Link to comment Share on other sites More sharing options...
Balta1701 Posted June 27, 2011 Share Posted June 27, 2011 QUOTE (southsider2k5 @ Jun 27, 2011 -> 09:25 AM) Depends on how it was done. There's a pretty good description of how they sliced and diced the Dodgers into 5 different corporations, gave themselves a salary at each, and took out a loan to investors with each of those corporations as collateral over in the other finance thread. Quote Link to comment Share on other sites More sharing options...
Kyyle23 Posted June 27, 2011 Share Posted June 27, 2011 the article you quoted seems to think Bankruptcy is not a valid option for him. We will see. I really dont see McCourt pulling this kind of money within the next week to make payroll. MLB is gonna auction one of the marquee franchises in the league, that is just unreal Quote Link to comment Share on other sites More sharing options...
southsider2k5 Posted June 27, 2011 Author Share Posted June 27, 2011 QUOTE (KyYlE23 @ Jun 27, 2011 -> 08:36 AM) the article you quoted seems to think Bankruptcy is not a valid option for him. We will see. I really dont see McCourt pulling this kind of money within the next week to make payroll. MLB is gonna auction one of the marquee franchises in the league, that is just unreal This bankruptcy is going to be a halt to that for the time being. I don't think MLB can seize the team while in bankruptcy. Quote Link to comment Share on other sites More sharing options...
HuskyCaucasian Posted June 27, 2011 Share Posted June 27, 2011 McCourt rips Selig - "He's turned his back on the Dodgers, treated us differently, and forced us to the point we find ourselves in today," McCourt said in a statement. "I simply cannot allow the commissioner to knowingly and intentionally be in a position to expose the Dodgers to financial risk any longer. It is my hope that the Chapter 11 process will create a fair and constructive environment to get done what we couldn't achieve with the commissioner directly." There's a LOT of reasons to rip Uncle Bud, but this is not one of them. Quote Link to comment Share on other sites More sharing options...
LittleHurt05 Posted June 27, 2011 Share Posted June 27, 2011 Quote Link to comment Share on other sites More sharing options...
Balta1701 Posted June 27, 2011 Share Posted June 27, 2011 Stark on where this heads. McCourt issued a statement Monday saying he'd already obtained $150 million in interim financing (from a hedge fund, Highbridge Capital) to make all those payments and to keep the Dodgers chugging ever onward. But any minute now, commissioner Bud Selig's lawyers will be charging into that very same bankruptcy court to say, "Uhhh, not so fast, Frank." What MLB will argue, other attorneys say, is that the rules of baseball don't allow McCourt to pull this maneuver without the approval of his favorite commissioner. And needless to say, Selig didn't sign off on any of this. So Selig's legal team will argue that it's not in the best interests of baseball for some hedge fund to lend the Dodgers the big bucks they need to keep operating. Instead, being the magnanimous commissioner he is, Bud Selig will say: "We'll supply the financing here. No need to rely on a bunch of anonymous financiers. This is how we did it in Texas last year, and look how well that worked out." Then it's up to the bankruptcy judge who now, for all intents and purposes, controls the fate of this franchise. If the judge sides with Selig, McCourt's big legal gambit could become an official disaster, faster than you could say, "Wait a second. The Dodgers still owe money to Marquis Grissom?" At that point, other attorneys suggest, baseball will infuse the money it takes to make the Dodgers' payroll -- and then turn its guns on McCourt. It will ask the judge to give McCourt the boot, install Selig's man, Tom Schieffer, as the guy in charge and tell McCourt to get in line with the other creditors. .... The bankruptcy court now, essentially, runs this franchise. So even if baseball outmaneuvers McCourt this week, McCourt won't be done scorching Bud Selig's portion of the earth. His next step, other attorneys predict, would be to challenge the commissioner's best-interests-of-baseball powers in that same bankruptcy court. And won't that be a hoot. It's hard to envision McCourt winning that case. But the guns would keep firing deep into the night either way. And ultimately, it's possible that when the Dodgers eventually get sold, if these pesky bankruptcy issues haven't been resolved, it will be the court running the sale, not Bud Selig. It was only a year ago, remember, that the Rangers were sold in an auction run by a bankruptcy court. And that was a situation very different than this one -- because their owner at the time, Tom Hicks, "saw the writing on the wall," says one baseball official, and allowed MLB to step in and finance the Rangers' operations without a fight. Nevertheless, because that sale was a court auction, not an MLB operation, Selig almost wound up with Mark Cuban as part-owner of one of his baseball teams. So don't forget, kids: Once the judges get involved, nothing about the Dodgers figures to be normal for a long, long time. Quote Link to comment Share on other sites More sharing options...
Soxfest Posted June 27, 2011 Share Posted June 27, 2011 McCourt grasping at straws at this point! Quote Link to comment Share on other sites More sharing options...
JorgeFabregas Posted June 28, 2011 Share Posted June 28, 2011 Anyone mention that the White Sox are one of their largest creditors? http://hardballtalk.nbcsports.com/2011/06/...ggest-creditor/ I read somewhere that the debt stems from the shared spring training facility. Quote Link to comment Share on other sites More sharing options...
HuskyCaucasian Posted June 28, 2011 Share Posted June 28, 2011 MLB/Dodgers have banned the sale of "Chapter 11" jerseys Apparently some Dodgers fans tried to customize jerseys with the name "Chapter" and the number "11," in light of the bankrputcy filing. It's pretty hilarious if you ask me. Unfortunately, the Dodgers didn't seem to find the humor in it. If you go to MLB.com and try to purchase a "Chapter 11" jersey, you'll get this message: Your current entry cannot be processed. Language deemed inappropriate, derogatory, or profane will not be accepted. Please create a new entry. Quote Link to comment Share on other sites More sharing options...
bigruss Posted June 28, 2011 Share Posted June 28, 2011 QUOTE (Athomeboy_2000 @ Jun 28, 2011 -> 11:42 AM) MLB/Dodgers have banned the sale of "Chapter 11" jerseys That's lame. It wasn't profane, it was a joke on how stupid there owners are. It shouldn't offend anyone, since the McCourts put themselves in that situation anyways. Quote Link to comment Share on other sites More sharing options...
Balta1701 Posted June 28, 2011 Share Posted June 28, 2011 MLB files objection to bankruptcy filing 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. 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. Quote Link to comment Share on other sites More sharing options...
Kyyle23 Posted June 28, 2011 Share Posted June 28, 2011 I bet McCourt regrets the day he put his wife in a seat of power within the dodgers Quote Link to comment Share on other sites More sharing options...
Kyyle23 Posted June 28, 2011 Share Posted June 28, 2011 QUOTE (bigruss22 @ Jun 28, 2011 -> 01:03 PM) That's lame. It wasn't profane, it was a joke on how stupid there owners are. It shouldn't offend anyone, since the McCourts put themselves in that situation anyways. Its the same as the Ron Mexico jersey imo. The league sees it is in bad taste, so they reject it. Thats fine, little shops that do customizing will make their money Quote Link to comment Share on other sites More sharing options...
Kyyle23 Posted July 1, 2011 Share Posted July 1, 2011 dodgers started bouncing paychecks to part time staff according to espn Quote Link to comment Share on other sites More sharing options...
Balta1701 Posted July 23, 2011 Share Posted July 23, 2011 Link A Delaware judge on Friday rejected the Los Angeles Dodgers' proposed $150 million bankruptcy financing plan, directing the team to instead negotiate a loan deal with Major League Baseball. Judge Kevin Gross said in an eight-page order that the team had failed to show the terms of its secured financing with hedge fund Highbridge Capital were fair, given the more favorable financial terms in MLB's unsecured loan offer. The Dodgers previously rejected MLB's offer and had refused to negotiate with the league, arguing that its financing proposal was simply an attempt by baseball commissioner Bud Selig to take control of the team and force a sale. While acknowledging an "underlying feud" between Selig and Dodgers owner Frank McCourt, Judge Gross said he was basing his decision on debtor-in-possession, or DIP, financing on the narrowest grounds possible and leaving arguments over the team's management for later. "The court finds that the Baseball loan is not a vehicle for Baseball to control debtors," wrote Gross, who ordered the team to negotiate with MLB cooperatively and in good faith. "Debtors and Baseball are entitled to the other's full cooperation in finalizing and administering an unsecured loan facility," he said. Rob Manfred, MLB's executive vice president for labor relations and human resources, issued a statement praising the ruling. "We are pleased that the court has agreed with our position with respect to providing the DIP financing and shares our long-standing view that the proposal put forth by Major League Baseball is the best option for the Los Angeles Dodgers franchise," Manfred said. "Major League Baseball remains committed to serving the best long-term interests of the Dodgers and their fans." Bruce Bennett, an attorney for the Dodgers, said he had spoken with McCourt, and that the Dodgers owner was satisfied. "He was pleased that the financing will not have any impact on the Dodgers' reorganization strategy," Bennett said. Bennett said the judge's decision addresses concerns about provisions in MLB's initial loan offer that the team viewed as potentially troublesome. "Our concerns were about terms and conditions, and I think we've succeeded in getting terms and conditions we can live with," he said. The Dodgers already have asked the league for a draft credit agreement reflecting the judge's requirements, said Bennett, adding that the loan agreement could be wrapped up as early as next week. Quote Link to comment Share on other sites More sharing options...
Balta1701 Posted October 17, 2011 Share Posted October 17, 2011 The McCourts have reportedly reached a divorce agreement that gives Frank McCourt full control of the team and gives Jamie McCourt a ton of money. Quote Link to comment Share on other sites More sharing options...
HuskyCaucasian Posted October 25, 2011 Share Posted October 25, 2011 MLB claims McCourt took $190M from Dodgers Major League Baseball claims that Los Angeles Dodgers owner Frank McCourt took nearly $190 million from the team in what a court filing termed "looting." In filings in a Delaware court, MLB said McCourt took $189.16 from the club -- $73 million in parking lot revenue through a separate company, $61.16 to pay personal debts, and $55 million for personal distributions, the Los Angeles Times reported, citing documents. "The Dodgers are in bankruptcy because McCourt has taken almost $190 million out of the club and has completely alienated the Dodgers' fan base," the MLB filing said. The filing said the distributions were akin to "looting." The Dodgers countered that Major League Baseball commissioner Bud Selig approved the parking lot deal. They also said in filings that Selig acted in bad faith when he said he would reject a new team television contract. Both MLB and the Dodgers cited Bryan Stow, the San Francisco Giants fan who was injured in a parking lot beating on Opening Day 2011, in their latest filings. MLB said the Stow incident was an example of how a lack of security was an example of bad ownership by McCourt. The Dodgers countered that Selig "set about fabricating the public misimpression that security at Dodger Stadium was somehow inadequate. This is, by far, the most unforgivable action taken by the commissioner during this entire saga, and has caused enormous and irreparable harm to the Dodgers, Mr. McCourt and the game of baseball." In addition, the United States trustee in charge of the case agreed to put two season-ticket holders on the creditors' committee. Quote Link to comment Share on other sites More sharing options...
Milkman delivers Posted October 25, 2011 Share Posted October 25, 2011 I cannot believe a single person can fall into $61.16 million of debt. I cringe each time I charge anything to my credit card. Quote Link to comment Share on other sites More sharing options...
southsider2k5 Posted October 26, 2011 Author Share Posted October 26, 2011 @BillShaikin Bill Shaikin #Dodgers bankruptcy trial delayed to Nov. 29 - Dec. 2. Judge Gross gives no reason in his order. Trial had been set Oct. 31 - Nov. 4. Quote Link to comment Share on other sites More sharing options...
Kyyle23 Posted October 27, 2011 Share Posted October 27, 2011 The Dodgers/McCourt have asked the courts if Stow should be held liable in the beating that left him in a coma http://espn.go.com/los-angeles/mlb/story/_...s-blame-beating I know this is probably normal, but it sure doesnt paint the Dodgers/McCourt in a good light Quote Link to comment Share on other sites More sharing options...
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