Dodgers Agreed To Accept MLB’s Loan Offer

by San Antonio Attorney

The Los Angeles Dodgers has agreed to accept Major League Baseball’s financing offer in order to keep the team operating while it is working on its bankruptcy exit.

According to court papers filed, the Dodgers will take financing from the league for as much as $150 million. The agreement eliminates the team’s issue with the MLB loan trying to gain control over the team. A spokeswoman of the team said that the deal is good enough on both financial and terms aspects.

The parties filed their agreement proposal to the U.S. Bankruptcy Court in Wilmington, Delaware.

Bankruptcy Judge Kevin Gross ordered the Dodgers to negotiate with the league when the team initially preferred to take financing from a hedge fund unit of JPMorgan Chase & Co.

Gross said that the team is going to save $14 million if they take the league’s offer. Also, it was not clear to the judge how the team expected to perform within the baseball framework if it does not want to cooperate with the Major League Baseball.

Lawyers for the Dodgers explained that their reluctance was caused by the league’s financing offer that could allow Commissioner Bud Selig to gain control over the team. The team agreed to make a deal with the MLB when the league gave an assurance that it would get rid of the contentious language.

The borrowed money will probably be used for the team’s operations. It can give the Dodgers enough time to find a buyer for its cable television rights, which ought to help it stabilize its financial condition.

Before the bankruptcy filing, the team’s owner attempted to sell its TV rights to Fox Sports for $3 billion, but Commissioner Bud Selig of the MLB turned down the sale plan in June. After a few days, the team filed for bankruptcy.

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