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Dodgers file for bankruptcy

June 27, 2011 at 11:34 AM   |   Comments

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LOS ANGELES, June 27 (UPI) -- The Los Angeles Dodgers have filed for bankruptcy protection and the team's owner blames baseball Commissioner Bud Selig for its money problems.

In a statement, the team said it has obtained $150 million financing to enable it to pay its bills as it moves through the Chapter 11 bankruptcy process.

"The Dodgers have delivered time and again since I became owner, and that's been good for baseball," owner Frank McCourt said. "We invested $150 million in the stadium."

"And we brought the commissioner a media rights deal that would have solved the cash flow challenge I presented to him a year ago, when his leadership team called us a 'model franchise,'" McCourt said. "Yet he's turned his back on the Dodgers, treated us differently, and forced us to the point we find ourselves in today."

The Dodgers said they tried for nearly a year to get Selig approve a multibillion-dollar media deal with Fox that would have made the team financially sound.

"Indeed, for months, the Dodgers have sought approval from the commissioner of a multibillion dollar media rights transaction negotiated between the Dodgers and FOX, which would immediately infuse hundreds of millions of dollars of capital into the Los Angeles Dodgers," the team said. "The Commissioner's office last week rejected the deal, despite having been made aware by the Dodgers since the spring of 2010 of the franchises' cash projections and in turn liquidity needs for 2011."

Selig issued a statement, saying the deal with Fox would not help the Dodgers' financial situation.

"It is my conclusion that this proposed transaction with Fox would not be in the best interests of the Los Angeles Dodgers franchise, the game of baseball and the millions of loyal fans of this historic club," Selig said.

"Mr. McCourt has been provided with an expansive analysis of my reasons for rejecting this proposed transaction. Critically, the transaction is structured to facilitate the further diversion of Dodgers assets for the personal needs of Mr. McCourt."

© 2011 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
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