Sunday, October 2, 2011

Dodging Bankruptcy

The Los Angeles Dodgers and owner Frank McCourt will face MLB commissioner Bud Selig in the court room october 31st to decide the faite of the team. Frank McCourt had to file for bankruptcy after Bud Selig denied the Dodgers right to a 150 million dollar deal with fox to televise their games. Selig believes it is best for baseball if McCourt loses ownership of the team. However Judge Kevin Gross will have the final say in the bankruptcy court room over whats best for baseball.

Frankly Bud Selig does not want another team like the Yankees or Red Sox to to be exempt participating in the league's revenue sharing system. Similar to how the Long Horn Network doesn't have to share its profits with other teams by having their own network. However the existence of networks like YES and LHN have been motivated by "greed", the dodgers were just trying to stay away from bankruptcy. If the Dodgers go bankrupt it will be very interesting to see how the future of sports telecasting rights change. It is very possible that this decision could be used down the line to create laws for collegiate athletic broadcasting. Especially with the fallout of athletic conferences.


Deven P. said...

This situation reminds me a lot of the New Orleans Hornets last year. The NBA commissioner didn't want somebody to relocate the Hornets franchise. The NBA was forced to buy the bankrupt Hornets because they felt that if New Orleans lost the franchise it would be be a "black eye" to a city that was still recovering from Hurricane Katrina. They bought the franchise for about $300 million. Just a few years ago they had a playoff team with one of the best young point guards in the game and after the NBA bought them over they have failed to progress and put fans in the seats. However the Texas Rangers declared bankruptcy last year and would later reach the World Series for the first time ever, reviving interest in one of the historically worst teams in MLB.

Smith said...

I don't know if this will truly effect the Dodgers. I think they are facing bankruptcy because of a loss in fan base due to poor play. I wonder if this lawsuit will have a ripple effect in the majors?