McCourt’s Lawyers Call MLB Loan ‘deal with the devil’

by San Antonio Attorney

McCourt argued that borrowing money from Major League Baseball is the same as making a ‘deal with the devil’, according to court papers filed on Monday.

A hearing is scheduled on Wednesday where the lawyers of the Los Angeles Dodgers are expected to assert that the team should be permitted to take a loan from Highbridge Capital Management, and refuse the loan proposed by the Major League Baseball.

According to Baseball Commissioner Bud Selig, the MLB is offering the loan to McCourt to help the team save a huge amount of money in fees and interests.

McCourt has been blaming Selig for causing the team to go into bankruptcy because he rejected a $3 billion television deal between FOX and LA Dodgers. In the filing, McCourt said that the proposal of MLB was only an excuse to get further control over the team.

The lawyers for MLB asked the judge in a court filing to reject the offer of Highbridge since it comes with a higher rate compare with the MLB’s loan offer.

The MLB’s offer is much better as it will save the Dodgers $10 million in fees, the MLB’s attorneys said.

The league and McCourt’s court battle shows a potential struggle between the league’s power over the teams and the protections for teams in debt under the bankruptcy law.

The Dodger’s owner is asking a bankruptcy court to approve a $150 million loan from hedge fund Highbridge Capital Management for the Dodger’s operations.

According to the court papers filed by the attorneys for McCourt, there is nothing stated in the bankruptcy code that mandates the Dodgers to take the loan offer of the MLB. No debtor should be forced to borrow from any loan provider that will cause harm to the debtor’s interests and its estate. It is the business of the debtor to judge and refuse this type of a ‘deal with the devil’.

McCourt is also battling in court with his former wife over her claim that she has an ownership share in the Dodgers.

Even baseball is not immune to bankruptcy. If you find yourself under water with debt, seek help from a San Antonio Bankruptcy Attorney.

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