Dodgers Bankruptcy: The Battle Lines for Control of the Team are Forming
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.
My name is Christopher Fusco. I am the managing partner of Callahan & Fusco, LLC with offices in New York, New Jersey, and Pennsylvania.