The Los Angeles Dodgers baseball baseball team experienced a period of chaos in management in 2011-2012 that began when Major League Baseball seized control of the team from owner Frank McCourt on April 20, 2011 and ended when the team sold to the new owner on May 1, 2012.
Baseball commissioner Bud Selig announced that the takeover was due to concerns over the team's finances, and a loss of confidence in the ability of owner Frank McCourt to run the team. Selig announced his intention to appoint a supervisor to oversee the daily management of Dodgers finances. In June, when Dodgers struggled to meet his salary, Selig rejected a TV deal that would pump money into the organization. This led to Dodgers filing for bankruptcy, and was forced to negotiate loans with MLB to keep the club operating.
After a year of negotiations and litigation, the dispute ended with team sales to Guggenheim Baseball Management LLC.
Video 2011 Los Angeles Dodgers ownership dispute
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Frank McCourt and his wife Jamie bought Dodgers from Fox Entertainment Group in 2004. To arrange the purchase, he needed a $ 145 million loan from Fox, where he used the Boston parking lot as collateral. Fox eventually seized property parking and sold it.
Under McCourt's ownership of the Dodgers team made the playoff four times, progressing to the NLCS twice.
On October 14, 2009 it was announced that McCourts would split up after nearly 30 years of marriage. While speculation was raised on the impact on Dodeller McCourt family ownership, spokesman Jamie McCourt said the following day that "Dodgers focus is on the playoffs and the World Series". Jamie McCourt was fired from his position as CEO of Dodgers on Thursday, October 22, 2009, the day after Dodgers was knocked out of the playoffs, ending the reign of "The First Women's CEO of the Baseball Team". She formally filed for divorce shortly afterwards. Frank McCourt then accused him of having an affair with his bodyguards and changing keys in his office. Frank McCourt claimed at the time that the divorce would "have nothing to do with any team". "
On December 7, 2010, a judge in a divorce case canceled a marriage property agreement after marriage ("MPA") claimed by Frank McCourt gave him the sole owner of Dodgers. Following this decision, lawyer Frank McCourt said that Frank would use another legal path to build a sole ownership of Dodgers, while lawyer Jamie McCourt said that Jamie would be confirmed as one of the team owners as belonging to the community from their marriage..
On March 31, 2011, after the opening day game against the San Francisco Giants, Giants fans were attacked by two men dressed in Dodgers clothing in the parking lot of Dodger Stadium. The fan suffered serious injuries and was diagnosed with brain damage. McCourt was criticized for his response to the incident. The attack dampened presence in the Dodger game, and caused Dodgers to incur rising costs in security.
On 5 April 2011, McCourt presented the Selig office with a contract granting Fox broadcasting rights to the team for the next 20 years. The deal is said to be worth between US $ 2.5 and US $ 3 billion.
Fox also provides McCourt with a personal loan of $ 30 million to cover Dodgers' wages. To secure the loan, McCourt promised Fox that he would pay them back with money from the settlement or judgment against the lawfirm who drew up a marriage agreement that did not apply. The lawfirm responded to the report by filing a lawsuit against McCourt, seeking a judicial statement that the company was not responsible for losing control of the Dodgers
Just before MLB took over Dodgers, the TMZ.com website reported that the Internal Revenue Service was investigating Frank & amp; Jamie McCourt in response to allegations that they have been taking money from Dodgers for years without paying taxes.
Statement Bud Selig
In a statement to the press on April 20, 2011, Commissioner Bud Selig stated as follows:
In accordance with my authority as Commissioner, I informed the owner of Los Angeles Dodgers, Frank McCourt today that I will appoint a representative to oversee all aspects of the business and day-to-day operations of the Club. I have taken this action because of my deep concern about Dodgers' finances and operations and to protect the best interests of the Club, its fans and all Major League Baseball. My office will continue a thorough investigation into the operations and finances of Dodgers and related entities during Mr. ownership period. McCourt. I will announce my representative name within the next few days. Dodgers has become one of the most prestigious franchises in all sports, and we owe it to their loyal fans to ensure that the club is operated correctly now and will be guided appropriately in the future.
The reaction to Selig measures is generally positive. For example, The New York Times baseball journalist Tyler Kepner editorial that "Bud Selig never looks better than she is now." However, ESPN correspondent Gene Wojciechowski criticized Selig and MLB, making the case that Selig and 29 other MLB owners at the time turned a blind eye to the financial problems known to McCourts when they bought the team in 2004.
Frank McCourt's Statement
In a statement to the press on April 20, 2011, owner Frank McCourt replied:
Major League Baseball establishes strict financial guidelines to be followed by 30 teams. Dodgers adhere to this guide. On this basis, it is difficult to understand the commissioner's decision today.
Steve Soboroff, hired by McCourt as deputy chairman of Dodgers, April 19, 2011, described the team's takeover as "irresponsible".
Tom Schieffer designated
On 25 April 2011, Selig appointed Tom Schieffer, former Ambassador to Japan and former President of Texas Rangers, to oversee the team's finances. Schieffer must approve any team expenditure of more than $ 5,000.
Maps 2011 Los Angeles Dodgers ownership dispute
Completion of divorce and denial of TV deal
In June, the cash-strapped McCourt struggled to meet his salary, meeting only with the help of some of his friends. As the final salary of Dodgers at the end of June, which includes more than $ 8 million in deferred payments to former Dodger Manny Ramirez, approached, it was reported that McCourt would not be able to meet the wages without the consent of 17-year-old TV, $ 3 billion deal with Fox Sports Net. However, on June 20, MLB commissioner Bud Selig refused to approve the deal. Selig's actions also canceled the settlement reached on June 17 between Frank and Jamie who split their assets apart from Dodgers.
On August 4, a one-day trial is scheduled to decide whether the Dodgers belong to Frank and Jamie McCourt or Frank's community alone. However, the trial was canceled when Dodgers filed for bankruptcy.
Then, the court approves the 30-45 day hearing to settle the divorce, and decides who the owner of the Dodgers is. The trial is expected to begin in spring or summer 2012. In the meantime they agree to sell a portion of their housing holdings. On October 17, 2011 it was announced that McCourts had reached a settlement in the case of their divorce, in which Jamie would submit his claim to Dodgers and Frank would pay him about $ 130 million. Divorce is believed to be the most expensive in California history.
Bankruptcy Court
On June 27, Dodgers filed for Chapter 11 bankruptcy protection.
(Bud Selig has) turned his back on the Dodgers, treated us differently, and forced us to the point we found today. I can not allow the Commissioner to be consciously and deliberately in a position to expose Dodgers for financial risk any longer.
My goal from the beginning is to make sure that the Dodgers are being operated well now and will be properly guided in the future for their millions of fans... The action taken today by Mr. McCourt does nothing but pose any further danger to this history. franchise
In the filing, Dodgers asked permission to use a $ 150 million loan from hedge funds for daily operations, according to a team news release. If approved, this will allow the team to fulfill its payroll obligations to Ramirez, Andruw Jones, and others. After filing, Dodgers notifies Tom Schieffer that he no longer has any authority with respect to the Dodgers and refuses to let him get back to work. MLB filed their own response to the filing of bankruptcy, where they said that the court should reject McCourt's offer to save his holdings by "threatening the immediate destruction of one of the major baseball teams." They also asked the court to consider whether McCourt remained the owner during the trial and whether Schieffer could remain in his position.
In a court hearing on June 28, Dodgers and MLB agreed that Dodgers could use temporary hedge fund financing, awaiting a July 20 hearing on MLB's request to take over funds from Dodgers. The language in the original submission of McCourt requesting a television rights auction was temporarily removed, although it could reappear at the next hearing.
As part of the bankruptcy proceedings, McCourt's lawyer serves Selig and other top MLB executives with a subpoena, in an attempt to prove that Selig has determined that he will seize Dodgers. MLB lawyers responded that allowing McCourt access to MLB documents and executives would turn the trial into "mini-trial side events about his personal strife." The judge sided with MLB and decided that McCourt could not force the release of documents or overthrow Selig because they were irrelevant to the bankruptcy issue.
After a hearing on July 20, the judge rejected McCourt's continued use of Highbridge's loan and ordered McCourt to negotiate a loan with MLB.
On September 23, MLB made several court requests, which will be decided at the 12 October session. He requested that the judge order the Dodgers confiscated and sold. It also threatens to block any attempts to sell TV rights (and perhaps even suspend teams from the league for the 2012 season), and alleges that McCourt's lawyers did not stand up because he and they violated MLB rules. The Dodgers in a statement said that MLB is trying to force "unnecessary sales and destructive values" of the team.
On September 30, Judge Gross decided that McCourt's lawyers could not try to find it by looking at other MLB club records. However, he said he expects Selig to testify in private. He arranged a trial for MLB and McCourt's lawyers to give a case and oppose the sale of the club in early November, where he will decide on various things including McCourt, Dodgers, MLB, and TV contracts.
Sales Dodgers
On November 1, 2011 McCourt and MLB issued a joint statement that McCourt has agreed to sell teams, stadiums and parking lots. League hopes to have new owners in place by opening day, 2012.
The Los Angeles Dodgers and Major League Baseball announced today that they have approved a court-supervised process to sell the team and media rights of its officers in a way designed to bring maximum value to Dodgers and their owner, Frank McCourt.
The opening bid on the team matures on January 24, 2012. Some groups of potential owners bid on Dodgers, a group known to have bid including:
- Magic Johnson, Guggenheim Partners and Stan Kasten
- Hedge fund executives Steven A. Cohen & amp; Arn Tellem
- Developer Rick J. Caruso and former manager of Dodgers Joe Torre
- Stanley Gold
- Dennis Gilbert and Larry King
- The owner of the Dallas Mavericks, Mark Cuban
- Former Dodger player Orel Hershiser & amp; Steve Garvey
- Former owner of Dodgers, Peter O'Malley and South Korean conglomerate, E-Land
- Former Dodgers GM Fred Claire
- Jared Kushner.
- Michael Heisley
- Josh Macciello
After the initial round of bidding, the groups are supported by Hershiser & amp; Garvey, Claire, Gilbert & amp; Kings and Mark Cuban did not advance to the next round, where the remaining bidders were examined by MLB.
On March 27, 2012, it was announced that a deal had been reached on Dodgers sales between Frank McCourt and Guggenheim Baseball Management LLC, a group of investors fronted by Guggenheim CEO Mark Walter and including former Los Angeles Lakers, Magic Johnson, baseball executive Stan Kasten and mogul film Peter Guber. The total selling price for Dodgers (including Dodgers Stadium) exceeded $ 2 billion, making the biggest sales for professional sports teams in history, surpassing the $ 1.5 billion purchase of Manchester United F.C. by Malcolm Glazer in 2005. On the same day, it was announced that the group members would partner with McCourt to buy property around the stadium. The selling price of Dodgers is considered much higher than what the team really deserves at the time of sale. Estimates made by Forbes put the value of Dodgers about $ 1.4 billion, and the winning bid was more than 30% higher than the next highest bid. On April 13, the sale was approved by the bankruptcy court and on 1 May 2012 the sale was officially closed.
References
Source of the article : Wikipedia
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