The Dodgers and Fox Sports "ended their legal hostilities Tuesday night, with the team agreeing to abandon its proposed sale of television rights and Fox agreeing to withdraw its objection to the settlement between" MLB and outgoing Owner Frank McCourt, according to Bill Shaikin of the L.A. TIMES. The settlement means that McCourt "has reached agreement with his two primary adversaries in U.S. Bankruptcy Court -- MLB and Fox -- and can proceed to meet an April 30 deadline for the sale of the Dodgers." The impetus for the settlement "was the ruling last month that stayed the Dodgers from selling their television rights along with the team." U.S. District Court Judge Leonard Stark indicated that he "would probably make that ruling permanent" (L.A. TIMES, 1/11). Fox in a statement said, "We were never in favor of litigation, but it was imperative that we protect our exclusive media rights." In the deal, Fox retains the right to contest the sale of any equity in the team to key rival Time Warner Cable. McCourt also still owes Fox $30M for a personal loan the net fronted him last spring to help make player payroll during one of his most extreme cash shortfalls (Eric Fisher, SportsBusiness Journal).
BIDDING WAR: The WALL STREET JOURNAL's Matthew Futterman notes the ongoing litigation "had caused confusion among potential bidders" for the Dodgers and "threatened to depress the team's value" at auction (WALL STREET JOURNAL, 1/11). DAILY VARIETY's Jon Weisman noted given the "extreme rise in sports rights valuations, those of the Dodgers are expected to go for $150 million to $200 million per year on average over 20 years." The team's new owners can "lock up a deal with Fox before next winter, or they can wait things out and try to create a bidding war between Fox and Time Warner Cable." Weisman noted yesterday's settlement "might increase speculation that Time Warner Cable itself will try to purchase the Dodgers, though whether they want to burden themselves with the high cost of operating the franchise remains to be seen" (VARIETY.com, 1/10). In N.Y., Richard Sandomir notes Fox' Prime Ticket channel "carries Dodgers games and would likely bid for the future TV rights with Time Warner Cable, DirecTV and AT&T and others" (NYTIMES.com, 1/11).
ROSTER ADDITION: The L.A. TIMES' Shaikin reports Colony Capital Founder, Chair & CEO Tom Barrack, whose California-based real estate fund "has expanded into international sports and entertainment investments, is interested in pursuing the Dodgers." Forbes indicated that Barrack's firm "controls $34 billion in assets." Colony "formerly controlled, and retains an ownership stake in, French soccer club Paris Saint-Germain." Meanwhile, Shaikin notes as the Jan. 23 deadline for opening bids "approaches, the Dodgers have offered stadium tours to prospective owners." L.A. developer Rick Caruso "joined partner and former Dodgers manager Joe Torre at Dodger Stadium" yesterday, as did reps for SAC Capital Advisors Founder Steven Cohen (L.A. TIMES, 1/11).
