- If the JP Morgan Chase DIP financing is approved, then the Dodgers should have the resources to meet their upcoming June 30 payroll. I think all expect that this financing will be quickly approved.
- Under baseball’s Constitution, Commissioner Selig has the right to seize control of any team that files for bankruptcy. However, Selig’s power here will be trumped (at least for the moment) by the “automatic stay” that is a part of any business bankruptcy. The bankruptcy filing will insure that McCourt gets to run the Dodgers, for a while longer at least. To seize control of the Dodgers, MLB and the other creditors of the Dodgers will have to show fraud or gross mismanagement on the part of McCourt, and making this case will require a substantial amount of legal work (motions, filings, arguments) that would take some time to accomplish.
- Circled in blue on the chart below are the five Dodger companies that have filed for bankruptcy. These companies own the Dodgers team, and Dodger Stadium. These companies also own the company that controls the Dodgers ticket revenues (circled in green). They do not own the company that owns the Dodgers’ parking lots and the undeveloped land that surrounds Dodger Stadium (circled in red).
From the above chart, we can see one possible McCourt strategy: he may allow the Dodgers team and the Stadium to be sold out of bankruptcy, while holding on to the Dodgers’ parking lots and land for future development.