Monday, June 27, 2011

The Los Angeles Dodgers file for bankruptcy.

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Much more as the day develops, maybe here, maybe somewhere else. For now, here is one of the five filings made today in the United States Bankruptcy Court for the District of Delaware:

Los Angeles Dodgers LLC

And here is the statement of the Los Angeles Dodgers, released this morning:

Press Release FINAL

I wrote about the possibility of bankruptcy last month. The takeaway was that Jamie probably couldn't keep Frank from putting the Dodgers into bankruptcy, and that this course of action might be Frank's last best chance to force baseball to green-light the Fox deal.

In the time since then, Frank and Jamie McCourt reached a settlement that was almost immediately nullified by baseball's rejection of said TV deal. Bill Shaikin of the Los Angeles Times has reported that Fox would not join forces with Frank should he file bankruptcy, and it is unclear at this point whether the embattled owner has, indeed, won Fox's support.

Much of the chatter so far this morning has focused on the list of the Dodgers' unsecured creditors, prominently featuring former Dodgers Manny Ramirez, Andruw Jones, and even Marquis Grissom. There are other, larger creditors out there, likely including inter-Enterprise debt, but for now a list of players and minor trade creditors is all we've got.

The most interesting part of the filings, to me, is that all five Dodger entities which are now in bankruptcy list between $500 million and $1 billion in assets. Just one, however, shows any significant debt. That one: the Los Angeles Dodgers baseball team.
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24 comments:

  1. So - why Delaware? What's based in Delaware? Or what's the advantage, if there's a choice where to file for bankruptcy?

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  2. I'm guessing because at least some if not all of those entities are Delaware corporations for tax reasons.

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  3. As I am without the time to go through the filings - Am I correct that the holding company for the Parking Lot is not in BK? (on Josh's previous flowcharts it appeared, I think, as "BLUE LAND CO").

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  4. Why Delaware? No corporate income tax.

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  5. Ok ... I think it's time to rescind my earlier "Jamie's Worse" votes.

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  6. Why didn't they file using the Mannywood 90090 ZIP code rather than 90012?

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  7. Did Jamie OK the bankruptcy? If the disposition of the team is still up in the air (until the 1 day trial in August), wouldn't she have to agree to the filing?

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  8. The reason that the bankruptcy was filed in Delaware is that the Federal District Court and Bankruptcy Courts are renown as a business friendly court district. The preliminary rulings should be favorable to Frank McCourt..

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  9. Jamie doesn't have to okay or disprove the Bankruptcy for the case to be filed. Jamie is probably going to be named as one of the largest "creditors" given she is entitled to half the value of the team. Jamie can go file a brief to the court besides go to Bankruptcy Court with a California Family Law Court Judge's ruling that Jamie is entitled to half the value of the team.

    Right now, Frank is more worried about the main villain against him, MLB front office and Bud Selig than he is of Jamie. Jamie is another battle for another day, even though he is going to lose that battle as well.

    It is just so sad to reach this level of stubbornness and incompetence...

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  14. Just one, however, shows any significant debt.

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