Major League Baseball Asks Court To Force Frank McCourt To Sell The Dodgers

By Gene Maddaus Fri., Sep. 23 2011 at 3:23 PM

Frank McCourt

This is a big day in the history of the L.A. Dodgers. Major League Baseball has asked a bankruptcy judge to order that the team be sold at auction.

This is not a surprise, but it is quite something to see MLB lay out its case in black and white. The motion, posted after the jump, argues that Frank McCourt is using the Dodger bankruptcy "as a device to cure his own personal financial woes."

"Every dollar taken out of the Dodgers is a dollar that will not be available -- now and in the future -- to acquire new players, to meet future payroll obligations, to fund the stalled renovations to Dodger Stadium, to improve the Dodgers fan experience and to otherwise uphold the history and tradition of the Los Angeles Dodgers."

We've heard this all before, but again it's startling to see it stated so plainly in print.

Frank McCourt is asking the bankruptcy judge to void his contract with Fox, so that he can auction off the Dodgers' TV rights. That would give him the up-front cash he needs to keep the team on the field (and to pay off his ex-wife, Jamie McCourt).

But in its motion, MLB argues that McCourt cannot use the bankruptcy process to siphon off Dodger revenue for his personal use.

"A sale of Dodgers Media Rights without Major League Baseball approval would subject the Debtors to potentially severe discipline, including possible termination from the League... No one will pay the Debtors to broadcast Dodgers games if the Club is not part of Major League Baseball."

So it's come to this: A franchise that dates back to 1883 has been threatened with expulsion from the League. If that happens, maybe Frank can televise a bunch of split-squad games? L.A. fans could thrill to a pennant race between Dodgers A and Dodgers B.

Will the judge agree to force a sale? Well, in his ruling about interim financing, Judge Kevin Gross pointedly noted that McCourt has to cooperate with MLB if he hopes to "successfully operate a team within the framework of baseball."

MLB is saying that's impossible, and therefore the only remedy is a sale.

McCourt's PR people have issued a statement (next page) saying that MLB's motion is "meritless" and its inaccuracies are "offensive and too numerous to mention."

First, the MLB motion:
MLB Motion to Terminate

Tags:

baseball, Dodgers, Frank McCourt, Jamie McCourt, Major League Baseball, sale

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Noel Weiss

It would be beyond incredible if a bankruptcy court, in the face of object, direct, and incontrovertible self-dealing which borders on fraudulent (splitting assets without adequate or fair consideration going back to the Dodgers for the sole purpose of feathering one's economic nest at the expense of the Dodger organization) would allow Frank McCourt to continue this pattern. . . What is more significant is the contemporaneous motion to disqualify the attorneys for the Dodgers. . . who appear to be advancing Frank McCourt's interests (for a big fat fee, of course) at the expense and to the prejudice of the team. . . The Bankruptcy Judge is supposed to be neutral. . . . What he needs is true independent counsel from the Dodgers. . something which is not currently forthcoming. . . . I expect the outcome of this to lead to the Court's taking away control of the Dodgers and putting them in the hands of a 'referee' (perhaps under the auspices of the MLB in conjunction with the US Trustee's Office). . . so the Court can get the accurate facts after a full and thorough accounting of every McCourt transaction. . . .

If that happens, McCourt is toast. . . . The beginning of the end, particularly when the IRS gets done auditing him and Jamie. . . . . . . Then, perhaps we can get some true openness and transparency. . . . combined with the introduction of legislation in Congress to take away Baseball's anti-trust exemption. . . just putting the idea in play. . . . then we get the injection of some true 'citizen-empowering capitalism' to replace the current 'crony-corporate-capitalism' where self-interested rich people continue their 'socialism for the rich' model at the expense of the fans. . . .

Specifically, ownership of the Dodgers by the fans. . via a public interest corporation. . . comparable to the Green Bay Packers model where the people of Green Bay own the Packers (not the City. . . the People). . . .100,000 people at $10K per person is $1 Billion. . . .

Good-bye Frank. . . . Hello to true capitalism. . . 100% equity. . . . 0% Debt. . . . True citizen empowerment. . . political and economic. . . . (in Green Bay, 60% of the gross concession revenues go back to the community). . . . . Where middle class, lower middle class, and the poor can attend games. . . . uniting the City and empowering the people through sports. . . .

Noel Weiss