Divorce’s effects leads to LA Dodgers declaring bankruptcy
· - The LA Dodgers, under heavy financial stress and the end of month payroll period quickly approaching, declared bankruptcy on Monday. Bitter divorce proceedings between Dodger owners, Frank and Jamie McCourt has lead the team to file for Chapter 11 protection. Jamie McCourt has taken her half of the McCourt estate and left the Dodgers scrambling to not only pay back the loans the McCourts took out to buy the team, but also basic payroll.
· - Frank McCourt had cut a deal with Fox Sports in order to give the Dodgers solvency in order to make payroll and keep up with their debts in exchange for the TV rights to the Dodgers. However, MLB commissioner Bud Selig rejected the deal saying that it was mortgaging the future of one of baseball’s most storied franchise.
· - This decision comes a few weeks after Selig appointed a liaison from Major League Baseball to observe the Dodgers after it came to light that Frank and Jamie McCourt were basically using the Dodgers' operating funds for their own personal line of credit.
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