MLB is “planning to ask a judge to let it take control” of the Dodgers as the team’s bankruptcy moves forward “because of a rule in baseball’s constitution,” according to sources cited by Katie Thomas of the N.Y. TIMES. The rule allows MLB Commissioner Bud Selig to “end the franchise of an owner who files for bankruptcy protection.” Bankruptcy lawyers said that rules “like the one in baseball’s constitution are trumped by federal law and are generally not honored in court.” Still, sources said that MLB intends to “make the argument that the Dodgers owner Frank McCourt benefits from his membership in the majors and should therefore be forced to follow its rules” (N.Y. TIMES, 6/30). McCourt’s interim finance deal, “the one that allowed him to meet the next payroll,” comes with “at least a 10% interest rate and a hefty fee.” MLB on July 20 is expected to argue that “for the good of all involved, it should be allowed to replace that loan with a comparable one at 7% interest.” Meanwhile, In L.A., Wharton & Shaikin note MLB execs “did not expect” McCourt to file for Chapter 11 protection. A source said, “Even last Wednesday, I thought the way this was going to end was with him coming to the realization that he could not make payroll and saying, ‘You’ve got to cover me and I’ll sell the team’” (L.A. TIMES, 6/30).
BLAME GAME: YAHOO SPORTS’ Jeff Passan wrote under the header, “Selig Is Responsible For McCourt Running Amok.” Passan: “The facts are indisputable: An ownership crisis blossomed on Selig’s watch, and no matter how his allies try to spin it, ultimately he is responsible for the sport’s well-being.” An MLB source said that the league “is considering additional oversight of its owners, though such a measure would require the approval of the very owners it looks to keep in check” (SPORTS.YAHOO.com, 6/29). In Boston, Bob Ryan writes, “I like and admire Bud Selig. … I do not, however, remotely understand why he invoked the power of his office to prevent Frank McCourt from getting his hands on the Red Sox, which he did, and then allowed him to gain control of the Dodgers” (BOSTON GLOBE, 6/30). ESPN.com’s Duff McKagan wrote Selig “should not be seen as the full-on hero or good guy here.” McKagan: “It was Selig and his cronies who allowed McCourt to take ownership of the Dodgers in the first place -- all while knowing of some of his prior antics and financial buffoonery. I think Selig is now feeling a little bit taken” (ESPN.com, 6/29).
BLUE AND WHITE KNIGHT? ESPN.com’s J.A. Adande wrote the “saddest part of this Dodgers debacle is there’s no guarantee it gets better.” Adande: “If you look up to the top of the hill you won’t find a knight in shining armor atop his steed, ready to charge down and save the day.” Although Mavericks Owner Mark Cuban “has expressed interest in buying a baseball team,” there is nothing “that says he’d get the Dodgers or even that he wants to try.” Adande: “What can the Dodgers and their mounting debts do to appeal to the deepest pool of worthy owner candidates? ... One appealing nugget I’ve heard from a person connected with the group trying to bring the NFL to downtown Los Angeles is the possibility of using Dodger Stadium as a temporary home for the team while Farmers Field is being built” (ESPNLA.com, 6/29).
