Dodgers Owner Frank McCourt ‘Looted’ Team of $190 Million, MLB Alleges
By Phil Milford and Steven Church – Oct 25, 2011 9:54 AM ET
The league made the accusation yesterday in a 61-page brief in Wilmington, Delaware, asking a judge to prematurely end the team’s exclusive right to formulate a reorganization plan in favor of the league’s plan to sell the team.
“The 2012 season is fast approaching,” and “Mr. McCourt cannot continue taking money out of the Dodgers to satisfy his personal debts,” including a reported $130 million he owes his ex-wife, Jamie McCourt, as part of a divorce settlement, Jeffrey M. Schlerf, a lawyer for the league, wrote in the filing.
The Los Angeles team sought bankruptcy court protection from creditors in June. Its balance sheet as of June 30 listed $370.6 million in assets and $643.9 million in debt.
McCourt and his media representatives didn’t immediately reply to phone and voice-mail messages today seeking comment on the league’s remarks.
In court documents, team lawyers have denied McCourt wrongly took any money from the team, saying any financial transactions involving the Dodgers were either approved by MLB or did not have to be submitted to Baseball Commissioner Bud Selig.
MLB has accused McCourt of taking money out of the team in the past, claiming the withdrawals hurt the Dodgers and justify Selig’s position that the team should be sold.
The case is In re Los Angeles Dodgers LLC, 11-12010, U.S. Bankruptcy Court, District of Delaware (Wilmington).
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