Advertisement
YOU ARE HERE: LAT HomeCollections

DODGERS SALE

MLB wants $8.3 million in bills settled before Dodgers exit bankruptcy

The issue, which is not likely to delay the sale of the Dodgers, revolves around the league's contention the team should pay its legal costs incurred in the bankruptcy case.

April 03, 2012|By Bill Shaikin
  • Frank McCourt might have at least one more bill to pay before the Dodgers can emerge from bankruptcy.
Frank McCourt might have at least one more bill to pay before the Dodgers… (Irfan Khan / Los Angeles…)

The Dodgers should not be allowed to emerge from bankruptcy until they settle $8.3 million in bills from Major League Baseball, attorneys for the league argued in a court filing Tuesday.

The issue is not likely to delay the sale of the Dodgers, which the U.S. Bankruptcy Court is expected to approve April 13.

Frank McCourt agreed last week to sell the team to Guggenheim Partners, a group fronted by Magic Johnson and incoming team President Stan Kasten, for a record $2.15 billion.

The Dodgers already have incurred more than $20 million in bankruptcy-related expenses, according to court records. The matter of how much the Dodgers owe MLB has been submitted to court-appointed mediator Joseph Farnan.

The primary question for Farnan is whether the Dodgers should repay MLB for its legal costs in the bankruptcy case. Of the $8.3 million in bills included in Tuesday's filing, all but about $400,000 cover legal fees.

In their argument, league attorneys cited the MLB constitution, which forbids teams from "any form of litigation" against one another or the league itself. The commissioner is empowered to pursue reimbursement of legal costs from any "non-complying club."

The Dodgers have argued they should not be bound by the constitution, alleging Commissioner Bud Selig did not follow his own rules in what they called a premeditated effort to oust McCourt.

bill.shaikin@latimes.com

Advertisement
Los Angeles Times Articles
|
|
|