(Image source: NBC Sports)
BY JOSH FRYDMAN
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Dodger Nation bleeds Dodger Blue. Its team continues to bleed green. Its ledger -- is scrawled in red.
On Monday, the Los Angeles Dodgers filed for bankruptcy protection, the latest step in a downward spiral of one of baseball’s most storied franchises.
According to the team, the Chapter 11 bankruptcy protection gives the Dodgers a process to obtain the money needed to pay its creditors and ensure the long-term financial stability of the franchise.
CNNMoney reports, “...the team will continue to operate during the reorganization. But a sale of the team out of bankruptcy is likely.”
The Dodgers owe money to more than 5,000 creditors. CNBC sports business reporter Darren Rovell lists some of the surprising names the Dodgers are in debt to.
“Manny Ramirez, 21 million dollars, Andruw Jones, 11 million. Down at the bottom we have Marquis Grissom, who hasn’t played for the Dodgers since 2002. And Vin Scully, who has been broadcasting Dodgers games for 62 years, over $150,000 dollars. Come on pay Vin.”
The financial troubles for the Boys of Summer started in 2009 when Dodger owner Frank McCourt and his wife Jamie began a bitter divorce battle for control of the team. Then in April, Major League Baseball took over the team, appointing a trustee to oversee L.A.’s day-to-day operations.
Just last week Commissioner Bud Selig blocked a $3 billion television deal between the team and Fox Sports. Los Angeles’ KTTV quotes a statement in which McCourt blames his decision to file for bankruptcy on the commissioner.
“We brought the commissioner a media rights deal that would have solved the cash flow challenge I presented to him a year ago, when his leadership team called us a ‘model franchise.’ He's turned his back on the Dodgers, treated us differently, and forced us to the point we find ourselves in today.”
So why would Selig say no deal? NBC LA’s Fred Roggin says the commish didn’t want a large portion of the money going toward the McCourt’s divorce settlement instead of the ball club.
“The Commissioner released a statement saying the deal would not be in the best interest of the Dodgers because a large chunk of that upfront money, roughly 385 in total, would not have gone back into the team.”
Bloomberg Sports reports - filing for bankruptcy gives McCourt time to come up with the money to pay off his creditors, leading up to his payroll due date of June 30.
“There’s a lot of uncertainty over that June 30th payroll, if McCourt had missed it, baseball could seize the team, but now that he’s applied for bankruptcy, Frank can control the team through the proceedings.”
Finally - an NBC Sports blogger doesn’t see any light at the end of the tunnel for McCourt.
“For now, we simply have Frank McCourt where he was inevitably headed: bankruptcy court. And some time has been bought. A little anyway. The end game for McCourt, however, doesn’t look all that better than it did before.”
The Dodgers said the bankruptcy filing will not affect the teams’ day-to-day decisions on the baseball diamond, nor will it raise the price of tickets.
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