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Frank McCourt, L.A. Dodgers File For Chapter 11 Bankruptcy Protection

Frank McCourt made a wise move this morning when he filed for chapter 11 bankruptcy protection. Why is that? Well, this will take a little bit of explaining.

McCourt has shows interest in signing a multi-billion dollar television deal with Fox Sports. However, this is a deal that Commissioner Bud Selig was not smiling upon. In fact, Selig has expicitly expressed his belief that it wouldn’t be in the best interests of the Dodgers, their fans and baseball as a whole.

What about the bankruptcy court? The “integrity of baseball” is probably pretty low on their list of claims to protect. The proposed deal with Fox Sports would generate money…money that could pay creditors.

In addition, the strategic filing of bankruptcy in Delaware ensures that the chapter 11 case will be processed efficiently and fairly, without any undue influence from an organization with as much clout as the MLB.

My predictions for the coming years? This chapter 11 bankruptcy case will proceed slowly, the Fox Sports deal will proceed for 3 billion dollars, and the Dodgers will end up just fine. (Disclaimer: While I am a pretty darn good bankruptcy lawyer, I have no connection with this chapter 11 bankruptcy case. Therefore, opinions expressed are just that…..opinions.)

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