Major League Baseball Takes Over Dodgers Despite Fox's $30 Mil Loan to Team
Owner Frank McCourt was counting on a still-unapproved 20-year television contract with Fox to solve many of the baseball team's financial woes.
Major League Baseball has taken financial control of the Los Angeles Dodgers.
The move comes a week after Fox, the team's television partner, loaned the club $30 million to cover the first payroll of the season, reports the Los Angeles Times.
Team owner Frank McCourt had counted on a new, 20-year TV contract with the studio to resolve the majority of the team's financial woes but MLB baseball commissioner Bud Selig has yet to approve the deal. The Dodgers had more than $430 million in long-term debt as of 2009, according to court records obtained by the Times.
Selig will appoint a representative to oversee all aspects of the business and the day-to-day operations of the club.
Selig said in a statement Wednesday, "I have taken this action because of my deep concerns regarding the finances and operations of the Dodgers and to protect the best interests of the club, its great fans and all of Major League Baseball. My office will continue its thorough investigation into the operations and finances of the Dodgers and related entities during the period of Mr. McCourt's ownership. I will announced the name of my representative in the next several days."
McCourt bought the team from News Corp. in Jan. 2004. The team's finances have come into question since McCourt's divorce from Jamie McCourt, who was ousted as Dodgers CEO in 2009.
This is the third time in recent Major League Baseball history that the commissioner's office has taken over operations of a club, according to the MLB website.