Jul 22, 2011, 3:00 PM EST
The judge in the Dodgers bankruptcy case just ruled that Frank McCourt cannot use the financing he obtained from Highbridge Principal Strategies to keep the Dodgers running during their time in bankruptcy. Rather, he has ordered the Dodgers to negotiate with Major League Baseball in order to obtain financing from the league. You can read the order here.
Key from the court’s ruling was the judge’s belief that the terms of the Highbridge loan — which have Frank McCourt personally on the hook for over $5 million if it wasn’t used — “clearly compromised McCourt’s judgment.” Presumably, this means that the judge believes that McCourt was unwilling to consider superior MLB financing because to do so would personally cost him money, even if it was better off for the Dodgers and their creditors.
McCourt put his own financial interests ahead of the Dodgers’? Fancy that.
While this does not move Frank McCourt out of the owner’s chair — the judge ultimately retains authority over how money is spent during bankruptcy and specifically said in his ruling that the MLB loan could not be a vehicle via which MLB can take over the Dodgers — this is a huge win for Bud Selig and a huge loss from Frank McCourt, whose baloney is obviously not flying with this judge.
Oh, and since that Highbridge loan isn’t going to be used, McCourt just lost $5.5. million. So there’s that.
- Jayson Werth to serve five days in jail for reckless driving 30
- Keith Law’s top 100 prospects list is out 28
- Great Moments in Media Arrogance: Marshawn Lynch edition 163
- Nationals sign former Blue Jays closer Casey Janssen 10
- Ichiro Suzuki’s deal with the Marlins is worth $2 million 34
- Orioles acquire outfielder Travis Snider from Pirates 37
- Not so fast on the Bud Selig Hall of Fame talk 50
- Blue Jays sign president and CEO Paul Beeston to extension through 2015 26
- Great Moments in Media Arrogance: Marshawn Lynch edition (163)
- Rob Manfred, new Major League Baseball commissioner, suggests ban on defensive shifts (118)
- Why “Deflategate” would never happen in baseball (96)
- The Yankees are going to try to get out of paying A-Rod his contract incentives (83)
- Comments of the Day: some of you guys aren’t big Bud Selig fans (77)