Los Angeles Dodgers File Chapter 11 Bankruptcy

1:42 pm Uncategorized

LA dodgers logo 150x150 Los Angeles Dodgers File Chapter 11 BankruptcyLos Angeles Dodgers owner Frank McCourt filed Chapter 11 bankruptcy today on behalf of the 120-year-old sports franchise, in a move his attorneys say is an effort to buy time to shore up the team’s finances and others say is a plan to thwart the efforts of Major League Baseball to take over the financially troubled club.

According to a Wall Street Journal report, McCourt will seek to have a bankruptcy court approve a new long-term media rights plan that he believes will solve the team’s financial woes.  MLB Commissioner Bud Selig, who took over the team’s operations in April, rejected a Fox Sports TV deal last week that was worth a reported $2.7 billion because McCourt planned to use funds from the deal to pay off outstanding personal debts, including a divorce settlement to his wife, Jamie.

MLB officials blame the team’s financial situation on the McCourt’s use of club funds for personal use, and maintain that the McCourts should not be able to use money from the team to solve their own financial problems.

In the Chapter 11 bankruptcy filing, the top five creditors of the Los Angeles Dodgers are all former or current players and another MLB club:  Manny Ramirez, who is owed $20.9 million; Andruw Jones, owed $11 million, Hiroki Kuroda, owed $4.5 million, Rafael Furcal, owed $3.7 million, and the Chicago White Sox, owed $3.5 million from the Juan Pierre trade.

Our Newport Beach business planning law firm takes protecting your business and its assets very seriously.  We can help you structure your company and operations to ensure ownership and officers are fully protected from liability.

Contact us today and let our Newport Beach law firm help you with all your financial planning needs.

Leave a Comment

Your comment

You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Please note: Comment moderation is enabled and may delay your comment. There is no need to resubmit your comment.