November 22, 2024

Baseball Wants Bankruptcy Court to Allow Sale of Dodgers

In a motion filed in federal bankruptcy court in Wilmington, Del., M.L.B. said that the proceeds of a sale “are a far superior source of financing for Mr. McCourt, as compared to destroying a storied franchise by using it as his personal piggy bank.”

Last week, in a court filing, the Dodgers called “enforceable” a clause in their current cable TV contract with Fox’s Prime Ticket network calling for a 45-day exclusive negotiating period starting Oct. 15, 2012, to reach a new deal with Fox. The Dodgers argued that waiting so long to negotiate a new long-term deal with other possible bidders in a hot market would hinder their hopes of maximizing revenue.

The Dodgers also told the court that they should be able to approve a new TV agreement — a challenge to Commissioner Bud Selig, who in late June rejected a proposed 17-year extension with Fox.

“The bankruptcy code does not displace Major League’s Baseball’s approval rights and powers under the baseball agreements,” M.L.B. said in its motion. It also said that if the Dodgers sell their media rights without M.L.B.’s approval, the Dodgers’ franchise could be terminated.

Throughout the months of Dodgers financial drama, M.L.B. officials have accused McCourt of mismanaging the team and operating against the best interests of the club, in particular by seeking to use nearly half of a $385 million upfront payment from the rejected Fox deal to finance his divorce settlement.

All along, McCourt has said that Selig was intent on forcing him to sell the team he bought in 2004.

And on Friday, M.L.B. asked the court to terminate the exclusive period in which the Dodgers can file a bankruptcy reorganization plan so baseball can quickly submit a plan that would include a team auction.

M.L.B.’s motion listed seven reasons to sell the team, the last one being, “Mr. McCourt will likely receive hundreds of millions of dollars from the surplus, which will be available to solve his personal financial problems and leave him a very wealthy man (without continued harm to the team).”

The Dodgers called baseball’s motion “meritless” in a statement that added: “In United States bankruptcy reorganization cases, liquidation is the last resort, not the first option.”

In a separate motion, baseball asked for the disqualification of the two law firms representing the Dodgers in bankruptcy court because they are advancing McCourt’s interests in “direct conflict” with the team’s.

Article source: http://feeds.nytimes.com/click.phdo?i=e02397a583e7198f888544ace86422d4