The Los Angeles Dodgers’ bankruptcy filing, a move designed to alleviate some of the financial pressures on Dodgers owner Frank McCourt, has another major foe: Major League Baseball. In papers filed to a Delaware bankruptcy court on Tuesday, MLB is objecting to the Dodgers’ bankruptcy filing, citing concerns about the Dodgers leveraging future assets to pay for current debts.
MLB Objects To Los Angeles Dodgers Bankruptcy Financing Plan
Commissioner Bud Selig claims in the filing that his office can provide a loan on better terms, and argues that the court should reject McCourt’s financing proposal because it compels the team to sell valuable future broadcast rights to meet current expenses and to provide money for McCourt’s personal use.Broadcasting rights have become one of the most lucrative assets a professional sports team can claim, especially in the Los Angeles area. The Los Angeles Lakers’ television rights deal with Time Warner Cable reportedly could rake in up to $3 billion, and the New York Yankees and Boston Red Sox have been able to maintain their massive payrolls in part because of substantial revenue from regional sports networks.
For more on the Dodgers and their bankruptcy saga, visit True Blue LA and SB Nation Los Angeles.
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