MLB takes over Dodgers as ‘Deep Concerns’ arise

Major League Baseball Commissioner Bud Selig released a statement, in the wake of a myriad of problems for Los Angeles Dodger’s owners Frank McCourt, informing the forlorn owner that the league would be seizing the day-to-day operation of the team. Selig cited “deep concerns regarding the finances and operations of the club,” as the main factor in his decision.

Jamie McCourt, Frank’s wife of 30 years, filed for divorce in October of 2009, one week after Frank fired her as the team’s chief executive. Frank accused Jamie of having an affair with her driver-bodyguard and said she performed poorly in the workplace.

Then, in December of 2010, Superior Court Judge Scott Gordon invalidated a March 2004 marital property agreement that declared Frank McCourt the sole owner of the team, opening the door for Jamie to seek control of half of the franchise in the divorce proceedings. During the trial, it was revealed that McCourt spent over $100 million of the team’s revenues on his lavish lifestyle, and gave his children exorbitant salaries for seemingly limited contributions.

Having already burdened the team and its real estate with $450 million in debt, McCourt was having trouble securing additional loans. So, he retained a high powered law firm to negotiate a front-loaded television contract with Fox, worth somewhere in the neighborhood of $3 billion over 20 years.

On opening day, Bryan Stow, a San Francisco Giants’ fan, was badly beaten outside of Dodger Stadium. The fan suffered brain injuries and was placed in a medically induced coma after the assault. During the investigation, it was revealed that McCourt had left the security chief position vacant for four months prior to the March 31 attack, adding to the franchise’s list of woes.

Selig was still in the process of reviewing the Fox television deal when McCourt got desperate. He needed a loan from Fox worth $30 million in order to meet payroll requirements on April 15. The loan was secured by McCourt promising Fox that if he could not repay them, he would give them $30 million from any settlement or judgment arising from his litigation against Bingham McCutchin, the law firm that drafted the since-invalidated marital property agreement. The fact that McCourt was leveraging himself with assets that he did not possess, and could not guarantee, forced Selig’s hand.

Now, Selig will appoint someone to run the Dodgers while the MLB offices concoct their plan to save one of baseball’s most storied franchises. Here’s hoping that the club that was once forward-looking enough to be the first to integrate can someday put the McCourt Era behind it.

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