Judge Ordered Dodgers To Negotiate With MLB’s Loan Offer

by San Antonio Attorney

Los Angeles Dodgers was ordered by a bankruptcy judge to consider the Major League Baseball’s loan proposal.

The loan proposal which Dodgers owner Frank McCourt wants to choose was rejected by Delaware Bankruptcy Judge Kevin Gross. According to the judge, McCourt’s choice of loan will only serve his personal interest.

In addition, the financing arrangement which the team proposed was also rejected because the court wants the team to negotiate with MLB. The league’s offer could save the Dodgers $14 million.

The amount would be useful for the team’s operation and provide it enough time to sell its cable television rights. This could help the team have a good financial standing.

But the Dodgers and the MLB will likely collide once more over who is to be blamed for the team’s bankruptcy: whether it is McCourt who had mismanaged the team or the league’s antagonism toward the team’s owner.

The team’s cable TV rights deal which was worth $3 billion was rejected by Commissioner Bud Selig last month. After a few days, the Dodgers filed for bankruptcy.

In the court, the team argued the league’s loan was part of Selig’s plan to take control over the team.

The MLB reassured Gross that the league’s proposed loan will not include such language.

The judge gave a few warnings to McCourt. In his eight-page opinion, he noted the testimony of Dodger executive Jeffrey Ingram that the league is not hostile to the Dodgers.

Gross also stated that debtors won’t be able to successfully operate a team within the leagues framework if they do not negotiate with the league’s loan offer, even under the bankruptcy court’s protection.

In a statement by the MLB, the league said that it is pleased about the court’s ruling.

When the economy is facing hard times many of our favorite activities become affect.  Teams such as the Dodgers, and Rangers have had financial issues throughout these sluggish times.  If you face a similar situation, and need the help of the bankruptcy courts, then contact a San Antonio bankruptcy attorney for help.

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