Tag Archive | "mccourt bankruptcy details"

McCourt victorious in bankruptcy court


Uncertainty about what would happen with the L.A. Dodgers in court did not deter the team’s performance on the field earlier this week. The team responded with a 15-0 win; a feat that hadn’t been accomplished in the history of the team, whether located in Los Angeles or Brooklyn.

In that historic game, every starting player finished with at least one hit, one run scored and one RBI while pounding the Twins’ pitchers for 25 hits over nine innings.

In another victory, Dodgers’ owner Frank McCourt won round one in his bankruptcy action despite protests by MLB when a federal bankruptcy court in Delaware gave McCourt permission, on a temporary basis only,  to go forward with his interim financing plans.

Under the plan, McCourt will borrow $150 million from private financiers, $60 million of which is expected to be funneled to the Dodgers’ owner. This move will allow the club to meet financial obligations including player payroll and commitments for deferred salary to former Dodgers Manny Ramirez, Andruw Jones and other players no longer on the roster.

Bill Shaikin of the L.A. Times reported that MLB’s alternate financing plan for the Dodgers proposed to the judge will get its own hearing in three weeks. Until that time McCourt can pull off getting the initial $60 million at 10% interest with a fee that had been proposed at $4.5 million. Today’s ruling by the bankruptcy court reduces that amount to about $250,000.

MLB filed its objection to McCourt seeking bankruptcy relief and announced its willingness to fund the Dodgers during the bankruptcy proceedings, to avoid the necessity of McCourt going outside the league for any funds. MLB has said the plan they propose carries no fee and has a lower rate of interest at 7%.

Used with permission of the author.

Paula Duffy is a national sports columnist for Examiner.com and the Huffington Post and regularly comments on sports/legal matters for radio affiliates of ESPN and Fox Sports. She founded the sports information site, Incidental Contact, is the author of a line of audio books designed for sports novices and in her spare time practices law in Los Angeles.

Copyright ©2011 Sports Climax, LLC

Posted in Duffy's Court, Features, MLB, Recent BuzzComments (0)


Stay Up to Date