After a $3 billion deal television deal with FOX Sports was rejected by Major League Baseball Commissioner Bud Selig, the Los Angeles Dodgers have been forced to file for bankruptcy!
Owner Frank McCourt filed for Chapter 11 bankruptcy, which allows the team to continue to operate. However, experts do not think McCourt will be able to hold onto the team for much longer and a sale is likely.
David Carter, executive director of the Sports Business Institute at the University of Southern California, said:
"I don't think you file bankruptcy unless you're running out of cards to play. Major League Baseball seems to be doing whatever it can to cut off his financial lifelines. Maybe in McCourt's eyes, this buys him enough time to turn things around. But it's the clearly bottom of the 9th inning in terms of his ownership."
Bummer for McCourt, but fortunately for us, this won't affect the Dodgers season.
McCourt was able to arrange $150 million in debtor-in-possession (DIP) financing to pay his players and continue to operate the team within their existing budget, meaning ticket prices will remain the same and purchased tickets will continue to be honored.
Although experts are predicting a sale, McCourt remains optimistic, saying:
"The Chapter 11 process provides the path on which to position the Los Angeles Dodgers for long-term success."
Let's hope so! Go blue!
[Image via AP Images.]
Tags: bankrupt, bud selig, california, chapter 11, court, finances, frank mccourt, major league baseball, mlb, sports