Sports In the Courts Blog : New York Attorneys & Lawyers Specializing in Sports Law & Legal Analysis

A Delaware bankruptcy court has now allowed embattled Dodgers' owner, Frank McCourt, to access a small part of his emergency loan package to keep the Dodgers running. However, the court has set a hearing date of July 20, 2011 that may determine whether McCourt will continue to own the team.

Before the hearing, we anticipate that MLB will detail why it believes that McCourt should no longer control the team and why his plan to reorganize with fail. It appears that it is the MLB's position that McCourt misused the Dodger's funds, over leveraged the team and drained important assets.

If the court agrees with the MLB's position or the position of other creditors who want McCourt out, the judge can order a sale of the team and seek to impliement more temporary funding (i.e. from MLB) to ensure an orderly transition to a new ownership group.
 

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Clemens and his attorneys suffered another loss, as the United States Supreme Court declined to hear his appeal of the dismissal of his defamation lawsuit against Brian McNamee.  The Fifth Circuit Court of Appeals had dismissed all claims against McNamee, because the allegedly defamatory statements were made in New York, and Texas courts had no jurisdiction over McNamee in connection with those alleged statements. The United States Supreme Court simply declined to hear the matter, effectively ending Clemens' case against McNamee. Clemens could have filed suit in New York, but the statute of limitations would now preclude him from doing so.

McNamee does have a defamation case pending against Clemens in a New York federal court, although some (but not all) of McNamee's claims were dismissed in February. 

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Floyd Mayweather, Jr. was sued in a Nevada Court arising out of an incident that occurred at the Palms Hotel-Casino last year. Anthony Cliff claims he was beaten by Mayweather's bodyguards at Mayweather's request, and was punched and kicked while on the ground.  The Palms was also named, on an inadequate security claim, and with allegations that Palms security did nothing to assist Cliff during the beating.

Mayweather can absolutely be liable for the actions of his bodyguards, whether he ordered the attack or not. Since the incident occurred in a valet parking area, it should be on tape somewhere. The extent of Cliff's injuries are not known at this point.

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Dodgers' owner for the moment, Frank McCourt, doesn't have many good options right now. After the MLB refused to go long with his TV deal with Fox to raise money, McCourt was almost out of operating cash. So now, he has been forced go to his court of last resort - bankruptcy.

McCourt must convince a bankruptcy judge that he possesses the best plan to keep the Dodgers' viable and to reorganize and pay the team's debts. To do this, McCourt may have acquired some short term financing from a hedge fund. But to ultimately survive, McCourt needs the TV deal to obtain operating funds.

The problem for McCourt is that many observers believe the Fox TV deal undervalues the worth of the teams broadcast rights. In a bankruptcy proceeding , the court must seek to maximize the team's assets to ensure its financial obligations will be met. In sum, the court doesn't have to sign on to any bad deals. If the court was presented with another option, such as, a new owner with fresh cash and no need to make a bad TV deal,then McCourt's days as team owner may be numbered.

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St. Louis Rams Linebacker David Vobora, who was suspended in 2009 for four games after testing positive for methyltestosterone, a banned substance, received some measure of vindication after obtaining a $5.4 million judgment against a Florida nutrition company, Anti-Steroid Program, LLC d/b/a S.W.A.T.S.  A Judge found that "S.W.A.T.S" misrepresented its "Ultimate Sports Spray." S.W.A.T.S. was ordered to pay $2 million for damage to Vobora's reputation and emotional distress, $3.04 million in lost income, and the remainder in lost endorsements and performance bonuses. The court may also award attorneys' fees.

However, the majority of news reports fail to reveal that this was a judgment entered by default against a company that likely has no assets. S.W.A.T.S. did initially hire counsel to answer Vobora's Complaint. On January 13, 2011, the parties notified the court that a tentative settlement agreement had been reached. However, in February, counsel for S.W.A.T.S. moved to withdraw, advising that S.W.A.T.S. had terminated its relationship with counsel. The court initially denied that motion, but later permitted the withdrawal, after the former President of the company advised the court that it had filed a voluntary dissolution in the State of Florida. Thus, Vobora's claim for damages went uncontested, and the Judge awarded the above damages by default. It is also doubtful that Vobora will ever collect anything from S.W.A.T.S.

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For the moment, NFL Commissioner Roger Goodell has no authority to discipline or suspend any players. This is because there technically are no players and no union contract to allow punishment. However, once the lockout ends, the commissioner will have his work cut out for him.

This week we learned that the NFL has investigated the involvement of at least 25 players who may have invested into a failed Alabama casino. The casino was closed due to corruption and gambling irregularities. The casino's owner entered a plea of guilty to 10 counts of public corruption charges. Not good.

The problem for Goodell is that many NFL players sunk millions into the corrupt casino. These players may include Terrell Owens, Santonio Holmes, Santana Moss and others.

It is a wonder how these players "misremembered" the NFL rules that absolutely prohibit players from investing in gaming operations. Obviously, players having a financial interest in gambling is not a good idea for the NFL (players are to be gambled on NOT the other way around).

Any player caught in this scandal will face suspension, fines and loss of their investment. No league can take gambling allegations lightly and you can bet the Commissioner will be more than ready to punish when he has his powers back. 

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There are plenty of published reports claiming that there is a renewed sense of optimism surrounding the NFL labor talks. Who knows, they may be right.

The problem is that in labor negotiations we are not a the nitty gritty yet. Yes, there is plenty of money to go around to line every one's pockets but what we don't know is what the owners and players REALLY want from this lockout episode. Are the owners going to stick to their demand to take the first "billion of revenue" of the top and demand 18 games (because the pre-season couldn't be worse)? Are the players going to resist changes in the salary cap and want an agreement that was just like the last one?

In labor negotiations, it great to be optimistic until the final demand bombs drop. If the talks can survive each sides' bottom lines then we will have football. However, if the owners and players still have wild cards to play, then you may want to find other things to do on Sundays in autumn.

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Back in April, Tennessee Titans Wide Receiver Kenny Britt was arrested on charges of eluding a police officer, hindering apprehension and obstructing a governmental function, after allegedly leading police on a chase.  Last week, those charges were resolved favorably to Britt, as he pled guilty to careless driving and speeding, and paid a $400 fine.

Britt wasted no time getting himself into trouble again. The very next day, Britt was arrested and charged with obstructing a governmental function (again), resisting arrest and tampering with evidence.  Police Officers at a car wash in Hoboken, New Jersey detected an odor of marijuana, and observed Britt with what appeared to be a marijuana cigar. The Officers attempted to handcuff Britt, and he allegedly attempted to get away while breaking the cigar in his hand. Police eventually wrestled Britt to the floor and arrested him, but were not able to recover the cigar or any evidence of marijuana.

Britt has to consider himself fortunate for the disposition he obtained of the April eluding charge. He may not be so lucky this time. If the allegations are true, Britt obviously has a problem complying with the directions of police officers, and he deserves more of a punishment than meaningless fines. 

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Now don't get me wrong, I prefer to practice in front of tough judges who aren't afraid to use their authority to "crack heads" when necessary to get to a fair and proper settlement. Yet, some judical-style "threats" are starting to get old.

At the last court appearance for the NFL and the Players, Judge Bye told the parties that they should settle or there would be a decision that "neither side would like."

Now what does that really mean? If the NFL and Players don't settle, the court is going to do something crazy? Don't the parties (even in this case) both have the right to expect the court will fairly apply to law to the facts of the case and make a learned decision? Of course, they do.

The problem with this judicial tactic, in my humble view, is that it is very over used. In almost every case that I am involved with I get it at some point and it goes pretty much without any reaction. As my grandmother used to say "in one ear and out the other."

I think it would be much more effective if the court told the NFL and its players that they should settle because it is shameful that judicial resources are being wasted on the question of how rich owners and wealthy players are going to slice up a $9 billion pie.

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Albert Haynesworth, the troubled Washington Redskin with a host of on and off the field issues, got lucky this week when a Virginia Judge dropped misdemeanor assault charges stemming from a road rage incident in which Haynesworth allegedly punched another driver.  Virginia law grants Judges discretion to dismiss such charges, as long as the victim advises the court that he or she has been compensated financially and "made whole."

This isn't the first time Haynesworth couldn't keep his hands (or feet) to himself. In 2006, Haynesworth stomped on the head of Dallas Cowboy Andre Gurode, causing severe injuries to Gurode. Also, earlier this year, Haynesworth allegedly sexually assaulted a waitress, and was indicted in April. 

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