MBL Counters Dodgers’ Allegations

by San Antonio Attorney

Major League Baseball has denied Los Angeles Dodgers’ accusations that it caused the baseball team’s bankruptcy and said that it is the owner of the team who attempted to get $20 million of the team’s funds before the filing of Chapter 11 protection.

The league accused Frank McCourt, the Dodgers’ team owner, of filing bankruptcy to resolve his personal conflicts, according to court papers filed on Wednesday.

The league received a request for a lot of documents which the team intends to use to find proof that MLB Commissioner Allan Huber “Bud” Selig treated McCourt unfairly. A telephone hearing will be held on Thursday before Delaware bankruptcy Judge Kevin Gross to decide what documents the MBL must give.

The Dodgers have filed for bankruptcy protection a month ago after the MBL disapproved the team’s proposal on a cable TV rights deal with Fox Sports channel, which could have provided funds that will help the team to meet a payroll.

The team claimed that the league rejected the proposal because it has a hidden agenda to remove McCourt from his position. The league says that he used $100 million of the team’s income for his own use.

The Dodgers’ owner is concurrently fighting a divorce court battle with his former wife over control of the baseball team.

The MBL and the Dodgers are fighting over loans necessary for the team’s operation. McCourt would like to get the $150 million loan from a unit of JPMorgan Chase & Co.

The league has offered to provide the loan for a lower interest rate. The Dodgers want to show the MBL is an opponent and that the league should not force the team to borrow from it.

But the league said that it is only trying to help protect the Dodgers’ image as one of the most valuable baseball teams. According to court papers filed, MBL said that McCourt asked for $20 million from the team’s money to be given to him in April.

The Dodgers’ requests for documents amounts to harassment, said the league. The team has asked for details about the other baseball teams’ media rights transactions, MBL’s correspondences with Mccourt’s ex-wife Jamie McCourt and also with Joe Torre, the former team manager, and the money which the league lent to the New York Mets that came from Bernard Madoff, the convicted operator of a massive investment fraud.

Disputes often arise in bankruptcy cases. Therefore, it is important to consider retaining the services of an experienced San Antonio bankruptcy attorney to represent your issues.


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