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The LA Dodgers might have a payroll issue to deal with on Thursday, June 30. It is because LA Dodgers Holding Company LLC filed for Chapter 11 bankruptcy, according to NBC Sports. Owner Frank McCourt will not be able to satisfy team expenses, including the ability to make payroll for players and staff. Post resource - Los Angeles Dodgers file Chapter 11 bankruptcy by Newsytype.com.

Getting some time

Legal action is stopped against the LA Dodgers Holding Company with the Chapter 11 filing. This shields the team from up to 49 creditors who are prepared to sue, as reported by paperwork filed. It may not prevent Major League Baseball Commissioner Bud Selig from wresting full control of the team away from McCourt, however. Whatever the lawsuit, legal experts are confident a major reorganization of the Dodgers' is coming.

McCourt not on the side of Fox Sports

A 17-year broadcasting rights deal was what Frank McCourt was counting on. This offer between the Los Angeles Dodgers and Fox Sports is around $3 billion in worth, as reported by Bloomberg. Several sources suggest that payday loans were taken out on the deal by McCourt. This was so all crew expenditures could be met. This involved some personal expenditure for McCourt. That may include his divorce that occurred.

All of this plus the Chapter 11 indicates Frank McCourt was not operating with a financial back-up plan. The Wall Street Journal speculates McCourt will ask the bankruptcy court to persuade Fox Sports to follow through with the remainder of the TV offer money, but whether or not his request is going to be granted is up in the air. On the subject of Frank McCourt, Fox has been very hands off. That has been the lawsuit for the last few months. The Los Angeles Dodger's creditors, not Frank McCourt or the Dodgers themselves, are probably the most significant part of the bankruptcy, as reported by legal experts.

Stance MLB is taking

The position of Selig and Major League Baseball was made clear by NBC Sports. They think that Frank McCourt could have made a lot more money in an offer than he is obtaining with the Fox Sports job. The court may choose that McCourt wanted quick cash and short-changed the LA Dodgers. This would lead to a forced auction sale if it takes place. MLB will take care of the paycheck for the Dodgers until the matter is settlement most likely.

McCourt stressed the Dodgers will move forward:

"The Chapter 11 process provides the path on which to position the Los Angeles Dodgers for long-term success," he said. "The process will allow us to focus on maximizing value in a manner that is transparent and driven by the best interests of the Los Angeles Dodgers and our fans."

The Dodgers are a valuable franchise

The LA Dodgers Holding Company LLC listed its debts and assets in the bankruptcy filing. Its liabilities were listed at under $50,000 with assets listed between $500 million and $1 billion. Bankruptcy counsel Bruce Bennett of New York-based law firm Dewey & LeBoeuf stressed the Dodgers will be able to fulfill financial obligations:

"The deal with Fox demonstrates that the Dodgers have enormous value which substantially exceeds the team's current and future liabilities," said Bennett. "The media rights will, one way or another, generate enough value to facilitate reorganization."

The Fox deal meant advances for Frank McCourt in cash

http://www.youtube.com/watch?v=fgSueo5nSPw

Citations

Bloomberg

bloom.bg/jqcqsA

NBC Sports

hardballtalk.nbcsports.com/2011/06/27/the-dodgers-file-for-bankruptcy/

PRNewswire

prn.to/lvw7Ab

Wall Street Journal

online.wsj.com/public/resources/documents/dodgers.pdf