L.A. Dodgers File for Bankruptcy Amid Frank McCourt Drama
NEW YORK - Los Angeles Dodgers owner Frank McCourt filed for Chapter 11 bankruptcy protection for his struggling Major League Baseball franchise on Monday, the Wall Street Journal reported.
The Dodgers' assets outweigh their liabilities, but the club doesn't have enough cash to meet its June 30 payroll, according to the paper.
It said the bankruptcy filing, a last-ditch effort to save the LA team from being seized by the league, sets up another showdown with MLB commissioner Bud Selig.
MLB had taken over day-to-day operations of the club in April amid concerns over team finances and security at Dodger Stadium.
McCourt will ask the bankruptcy court to approve a new long-term media rights deal that he argues will improve the club's liquidity, according to the Journal. Selig last week rejected the 17-year, $2.7 billion deal with News Corp.'s Fox Sports, because McCourt planned to use part of the money to settle a divorce from his former wife, Jamie.
Citing sources, the Journal said it is unlikely that Fox Sports will keep its offer on the table during the bankruptcy standoff.