Los Angeles Dodgers File For Bankruptcy Protection
The Los Angeles Dodgers filed for bankruptcy protection in a Delaware court Monday citing Major League Baseball as the reason. Team owner, Frank McCourt was banking on a multi-billion-dollar TV deal to help the team’s revenue but it was turned down by the league.
According to the bankruptcy filing, the Dodgers began experiencing money issues last year due to declining attendance, paying about $22 million in deferred compensation and revenue sharing.
The TV deal would have given the organization $385 million up front and was vital to a binding settlement reached between McCourt and his ex-wife and former Dodger CEO Jamie McCourt.
The former couple’s divorce exposed spending habits that contained $100 million in loans from Dodger-related businesses.
Frank is trying to hold onto the team but it may end up for sale by August and his ex-wife could still have a chance to become part owner. Stay tuned.
