Photo: Bradley Park
Major League Baseball has rejected a proposed television deal between FOX and the LA Dodgers, because most of the up-front money would be used to settle the divorce of the team’s owners, Frank and Jamie McCourt.On Friday, the McCourts finally agreed to a divorce settlement – more than 20 months after they first filed for separation – but the agreement was contingent on the MLB’s approval of the FOX deal.
The rejection by Selig essentially nullifies that agreement.
According to the LA Times, Selig was upset that the deal included a $385 million up-front payment from FOX, but that more than $173 million of that would go directly to the McCourts and their lawyers, and not to the Dodgers.
Without that money, it’s doubtful that the Dodgers will be able to make payroll at the end of the month, opening the door to a possible seizure of the team by MLB.
Frank McCourt is now left with few options. He still has not been granted official ownership of the team (complicating any sale) and he has no cash flow that would allow him to buy out his wife or stabilise the team’s finances. Raising outside money is not an option at this point, which is why the FOX deal was so crucial.
His only choice left may be to sue Selig, or surrender.
Business Insider Emails & Alerts
Site highlights each day to your inbox.